Scenarios that can lead to a voided Property Insurance policy

As a homeowner, you've taken the responsible step of securing property insurance to protect your investment. However, did you know that specific scenarios can void your policy, leaving you without coverage when it’s needed most?

As it turns out, some situations that could put your insurance at risk. Here are the most common reasons a policy may become voided and how to avoid them.

1. Misrepresentation on Your Application

When applying for property insurance, honesty is the best policy. Whether intentionally or not, providing false information can lead to a voided policy. This includes understating the age of your home, failing to disclose previous claims, or misrepresenting the property's primary use (e.g., not disclosing that you're running a business from home).

2. Leaving Your Home Vacant

Planning an extended vacation or temporarily relocating? Be aware that many insurance policies have clauses regarding vacancies. According to the Insurance Information Institute, most policies won't provide coverage if your home is left unoccupied for more than 30 days. If you will be away for an extended period, contact your insurer to discuss your options.

3. Failing to Maintain Your Property

Insurance companies expect you to take reasonable care of your home. Neglecting necessary repairs or maintenance can lead to claim denials or policy cancellation. For example, if you ignore a leaky roof and it eventually collapses, your insurer may argue that the damage resulted from negligence rather than a sudden, covered event.

4. Not Notifying Your Insurer about Significant Changes

Have you recently renovated your kitchen, added a pool, or started renting out a room? These changes can affect your policy's terms and coverage limits. Please inform your insurer about significant alterations or additions to your property to ensure adequate coverage and a valid policy.

Remember, your insurance policy is a contract between you and your insurer. The foundation of your coverage is based on the information you provide and the conditions you agree to maintain. By staying informed and communicating openly with your insurer, you can ensure your property remains protected. When in doubt, always reach out to your trusted, licensed insurance agent to ensure you are protected.