Why Might My Home Insurance Become Void?
Regardless of where you live, what kind of house live in, or how much property you own, the fact is that home insurance is absolutely essential. What many people do not realize, however, is that even if you have homeowners coverage in place, there are a number of reasons as to why your home insurance policy may become null and void. Here are a few common reasons that might cause your home insurance to become null and void.
Submitting an Exceptionally Large Number of Claims Throughout the Year
When it comes to home insurance, you should only submit a claim when it is absolutely necessary to do so. A home insurance company reserves the right to void a homeowner’s coverage if a policyholder submits an excessive number of claims over the life of their home insurance policy. If you submit an unusually high number of claims within a given time frame, your home insurance provider may view you as a “risky” homeowner and void your coverage.
Now, the majority of homeowners are not at risk for doing so, however, for some as soon as they think something is covered, they file a claim – whether it is necessary or not – which actually end up hurting them in the long run.
All of this said, remember that home insurance exists for a reason, If natural disaster strikes, such as a hurricane, blizzard or tornado a homeowner probably will need to submit a home insurance claim as quickly as possible.
Not Keeping Receipts
What good is home insurance if you are unable to get the coverage you need for all of your possessions? While it might seem frustrating now, you will be glad you took the extra step of holding on to your receipts should you need to file a claim. These receipts verify property ownership—along with when you purchased property and how much you paid for it – information that your home insurance provider will need. If you file a home insurance claim for a lost, stolen or damaged item and cannot verify property ownership, your policy could be voided.
Not Reporting Major Renovations Ahead of Time
Do you want to add a new bedroom to your house? Or maybe you plan to install a swimming pool in your backyard? If you complete home renovations and fail to notify your home insurance provider, you may put your homeowner’s coverage in danger. Property changes may impact the home insurance coverage that you need, as well as your home insurance premiums. Also, in some situations, property changes may cause your insurer to void your policy.
When in doubt about whether a home renovation project is a “major” endeavor, it always is better to err on the side of caution. If you plan to embark on a major home renovation project, you should reach out to your insurance company in advance. That way, you can guarantee your home and personal belongings are fully covered before, during and after the renovation project is completed.