Five Accidental Omissions That Could Void Your Home Insurance

Home insurance is one of life’s hassles. It’s certainly tempting to want to get it out of the way with a speedy purchase and then forget about it.

It’s vital to remember, though, that as our lives and the way we use our homes change, this can impact the validity of our insurance.

Notifying an insurer of a change, even inadvertently, may impact whether your insurance provider will honour a claim. These are also the sort of details that you’ll fill in when applying for a new policy – and ones that you have to update if the latest quote is still valid.

Here are five everyday things people may fail to notify home insurance providers about that could impact the validity of their policy:

1. Renovations/building works

It would be best to inform your insurance provider before you begin the renovation work at your home.

Renovations increase the risk of an incident and, therefore, a claim, and your insurer will want to check you have the right level of coverage. Increased risks may come, for example, from the property being left empty for periods, being less secure, the increased likelihood of a fire, or structural or other damage during the works.

In some cases, there’ll be nothing to pay. In others, you may need to pay a top-up fee or even consider getting a specific renovation insurance policy.

If the renovations add significant floor space or value to your home, they may also impact your insurance in the long term.

It’s also worth remembering that if you drill through a pipe or break a window while doing DIY work, you may be unable to claim it on standard house insurance, especially if you don’t have accidental damage coverage.

When budgets are tight, avoiding the risk of an inflated insurance premium can be tempting, but if your coverage isn’t right and you have a claim refused, it’s likely to be much more costly in the end.

2. A long holiday or period away from home

Most home insurance policies include a clause requiring the policyholder to notify the insurer if a home is going to be empty for a prolonged period—perhaps 30 days or more—due to the increased risk of empty homes. Some reasons for notifying your insurer are malicious damage, break-ins, and frozen and burst pipes in cold weather.

An insurer may require certain assurances if a house is going to be left for an extended period, such as concerning burglar alarms being set or regular checks by a nominated person.

Similarly, it is worth being aware that insurers are likely to stipulate that you take reasonable care to protect your home, and if you’re found to be in breach of that requirement, it could impact your coverage. Making a declaration on social media that you are away from home, for example, could be seen as failing to take reasonable care.

3. Not using a house alarm

In some cases, insurers may offer premium reductions if you have specific security features fitted to your home, such as a house alarm, which is a good reason to have one. Remember to use it when you’re not home, as not doing so may backfire and penalise you.

If the alarm is not set or in working order when an incident occurs, you may have to fight to get your insurance claim approved.

Any changes to other security features must also be highlighted to the insurer, who may view the risk differently due to their presence. That may include the types of window locks or doors you have.

On the plus side, if the insurer sees a new or amended feature as reducing the risk of a claim, you may see your premium reduced.

4. Renting out a room

Many insurance providers view having a lodger or tenant in your home as an increased risk, and some will not offer cover for those who rent out a room.

Ensure you discuss it with your insurance provider before agreeing.

5. Running a business from home

Running a business from home may impact house insurance, especially if that means storing stock or equipment on the premises.

In some cases, a regular policy will continue to be enough, but in others, more specialist coverage is required.

Even working from home can impact home insurance, and you should speak to your provider about whether you intend to do this.

Special dispensation may be available during Government work-from-home requests due to the coronavirus.

The Association of British Insurers has said: “If you are an office-based worker and need to work from home because of government advice or because you need to self-isolate, your home insurance cover will not be affected.”

Steps to take to ensure your home insurance remains valid

As with all insurance, the key to ensuring your home insurance provides a valuable safety net should you need to claim it is to be aware of the small print.

Notifying your insurer of changes you make could be an issue. Failing to meet requirements, such as keeping your home in good working order, could also impact your claim. For example, if there is water damage due to a blocked gutter, your insurer may deny your claim.

When you get your policy, read through it and check again if you’re going to make any changes to your home or the way you live in it. If you’re unsure if the difference you’re making may impact the policy, speak to your provider.

It is a good idea to note the time, date, and name of the person you spoke to when you notify of any change, or better yet, have a written record of the exchange.

Insurers should never seek to avoid honouring a genuine claim deliberately, and there is legislation to protect consumers from this happening. If you act with a reasonable level of diligence, home insurance is your friend, not your foe.