Some Ways In Which Your Home Insurance Policy Can Be Voided

Having home insurance is an important part of home ownership so that you, your loved ones, and your home can be properly covered if something unexpected happens. In the event of a fire, flood, or theft, you can rest assured that your home insurance policy will cover you for the financial losses sustained as a result of the property damage. However, there are many homeowners that are not aware of things that they may be doing on their property that can result in having their home insurance policy voided by their insurance company. In this blog we will provide you with some examples of things to avoid doing on your property so that your insurance policy won’t be voided by your insurer.

Illegal Criminal Activity

This should not surprise any homeowner, but performing any kind of illegal activity on your property will result in having your home insurance policy voided automatically. Some examples of illegal criminal activity can include operating a drug lab, storing illegal weapons, or exceeding the limit for growing cannabis plants (in Canada, each household can legally grow 4 plants under 100cm). So, if you are manufacturing drugs on your property and a fire breaks out, your claim will be denied and not to mention, you may face criminal charges, fines, and jail time.

Going On An Extended Vacation

Another example in which an insurance company can void your home insurance policy is if you are away from your home for an extended period of time (30 days or longer). The reason for this is simple: if you are away, you increase the risk of damage to your home in the event of a fire, flood, burst pipes, gas leaks, or be vulnerable to crime, such as theft and vandalism. Obviously, this is not a risk any insurance company is willing to gamble with. To have peace of mind, be sure to speak with your insurance broker so that you can adjust your policy terms if you will be away from your home for some time.

Operating A Home-Based Business

In most cases, a home insurance policy will exclude coverage for business-related risk if you are running a home-based business. This is because business-related activities in your home that result in a claim do not fall into the category of being insured under your home insurance policy - you will need business insurance for that.

For example, if you are making and selling baked goods from your home, you are increasing the risk of a claim since you are utilizing your kitchen beyond its normal and intended use. To have peace of mind before you decide to take on a home-based business venture, be sure to speak to your insurance broker so that you can have proper coverage added onto your policy.

Doing Home Renovations Without Notifying Your Insurance Company

It is incredibly important for you to speak with your insurance broker before doing any upgrades or renovations to your home for a few reasons. For one thing, doing renovations to your home, such as adding an extra bathroom and kitchen, will likely increase the value of your property. Your insurance company must know about this so that you can pay the adequate monthly premiums that reflect the ‘new’ value of the home post-renovations. Also, doing renovations to your home creates a significant risk (fire, electrocution, contractor injury) and your home insurance policy, in most cases, will not cover you for damages caused by construction that was done without your insurer's knowledge.