Homeowners insurance is a crucial safety net, protecting you from financial losses due to disasters, theft, and liability claims. However, certain actions—or inactions—can void your policy, leaving you unprotected when you need it most. To ensure you remain covered, let’s explore common ways homeowners insurance can be voided and how to avoid them.
1. Fraud or Misrepresentation
When applying for homeowners insurance, honesty is critical. Providing false or misleading information can lead to your policy being voided. Common misrepresentations include:
- Underreporting the number of occupants or pets.
- Failing to disclose prior claims or home hazards.
- Exaggerating damages in a claim.
Insurance companies conduct thorough investigations, and if fraud is discovered, not only can your claim be denied, but your entire policy may be canceled. Worse, you may struggle to get coverage in the future.
2. Neglecting Home Maintenance
Homeowners insurance covers sudden and accidental damage, not gradual wear and tear. If you fail to maintain your home properly, insurers may deny claims related to:
- Roof leaks due to lack of maintenance.
- Plumbing issues caused by neglected pipes.
- Mold growth from untreated water damage.
Regular home maintenance, such as inspecting your roof, cleaning gutters, and fixing leaks promptly, helps preserve both your home and your insurance coverage.
3. Illegal or Risky Activities
Using your home for illegal or high-risk activities can void your insurance policy. This includes:
- Running illegal businesses or unlicensed home rentals.
- Growing or manufacturing illegal substances.
- Keeping restricted dog breeds or hazardous materials on the property without disclosure.
If your insurer finds out about these activities after a claim is filed, they can refuse to pay out and even cancel your policy.
4. Leaving Your Home Vacant
Most insurance policies consider a home “vacant” if it’s unoccupied for 30-60 consecutive days. A vacant home is at greater risk for vandalism, theft, and unnoticed damage, such as burst pipes or fires.
To prevent your policy from being voided:
- Inform your insurer if you’ll be away for an extended period.
- Consider purchasing vacant home insurance if needed.
5. Making Major Renovations Without Notifying Your Insurer
Home upgrades can affect the value of your home and the risk level associated with your policy. If you make significant changes such as:
- Adding a swimming pool or trampoline.
- Building an extension or upgrading electrical wiring.
- Converting your home into a rental property.
You must inform your insurer. Failure to do so may result in denied claims or policy cancellation.
6. Non-Payment of Premiums
This one is straightforward: if you don’t pay your premiums, your policy will lapse. Without coverage, any damage or liability issues will come out of your pocket. Setting up automatic payments or reminders ensures continuous coverage.
Protect Your Coverage, Protect Your Home
Understanding what can void your homeowners insurance helps you take the right precautions to stay covered. By keeping your home in good condition, staying honest with your insurer, and updating your policy when needed, you can ensure you’re fully protected in case of an emergency.
Need help finding the best homeowners insurance policy? Contact our experts today for personalized assistance!