It’s an unfortunate fact that people sometimes void their home insurance without knowing it. And when they need to make a claim, they’re shocked to see it denied. Here are three of the most common ways that people unwittingly void their coverage.
1. Leaving your house untended while away Being away from your home for too long can void your coverage if you don’t make the proper arrangements. For example, many insurance policies require that you have your home checked in person every 24 to 72 hours if you’re absent for more than four days. This is because empty, unsupervised homes are more prone to break-ins, burst pipes, electrical problems and other risks. Moreover, under many insurance policies, your home will be considered vacant if you’re absent for more than 30 days. If you don’t notify your insurer of this vacancy, your coverage could be voided. 2. Renovating without notifying your insurer If you renovate your home and fail to inform your insurer, your coverage may be voided. This is because renovations change the value and replacement cost of your home, and may increase risk (for example, if you add a pool or basement unit). On the other hand, some renovations decrease risk, such as installing a new roof or alarm system. You’ll want to let your insurance company know about such improvements as well, as they may earn you a discount. Moreover, note that insurance policies typically suspend coverage for vandalism, water damage and glass breakage when a home is under construction. If you want comprehensive coverage during renovations, you’ll need to arrange this with your provider. 3. Starting a home-based business without updating your insurance Your home insurance policy only protects your home and its contents. For this reason, you’ll need to inform your insurance company and update your insurance if you decide to start a home-based business. If you fail to do this, any losses related to your business won’t be covered (for example, if a pipe bursts and damages your business equipment). In fact, depending on your policy, your homeowner’s coverage may also be voided entirely in these circumstances. It’s always wise to have your insurer or insurance broker outline the various conditions under which your coverage may be voided. Home insurance in Nova Scotia If you need home or business insurance, trust the brokers at Eisenhauer Insurance to find you coverage that suits your budget and needs. You can also count on us to effectively communicate the terms and conditions of your policy. For more information about our services, or for a free quote, contact us today.