There are several types of life changes that may impact the insurance you require. Here are 10 reasons to call us about homeowners insurance to ensure you’re protected in the event of a loss.
- Change in occupancy: Homeowner insurance is designed for a property you own AND in which you live. Sometimes owners move and the property is vacant or unoccupied, rented to others, or sold on contract for deed. When a home is no longer owner occupied, coverage should be rewritten to a more appropriate policy. Some homeowner insurance policies may void coverage for the property if it is not owner occupied.
- Cohabitation: People live together for a variety of reasons. Friends may live together to reduce expenses and people in long-term relationships often cohabitate. Property and liability coverage for members of a household that are not named insureds may find themselves with no coverage for their personal property or liability in the event of a covered loss.
- In-home business: Business is defined in your policy; even if you don’t see some activities as “business,” your policy may disagree. Generally it is necessary to buy specific insurance for business activities. All homeowner insurance policies restrict coverage for business property and completely exclude liability for business activities. They also exclude physical damage for any detached structure used in whole or in part for business activities.
- Domestic workers: Hiring a nanny, personal care assistant, gardener or other domestic worker can create an employer/employee relationship. Domestic workers may be subject to workers’ compensation laws, which homeowner policies do not cover.
- Motorized vehicles: Any self-propelled vehicle (e.g., snowmobile, ATV, golf carts, dirt bike – even a riding lawn mower if it leaves your residence) should be discussed with us. Liability and physical damage coverage for motorized vehicles is almost always excluded or severely limited.
- Roof/siding: Many policies apply depreciation for roof damage claims, especially when the roof is more than 10 years old. Cosmetic damage to roofs is often not covered at all. Some insurance carriers will not pay to match siding on the undamaged portions of your home if your original siding is no longer available. Review your policy at each renewal because coverage can change.
- Ownership: Estate planning sometimes includes the use of a trust or LLC. The entity which holds ownership must be listed on the homeowner policy.
- Home remodeling: Building improvements and remodeling or the addition of a detached structure need to be reported to us. Most homeowner policies could penalize you at the time of a loss if you didn’t report these changes.
- Special property: Certain types of personal property, such as jewelry, furs, guns, cash, silverware, goldware, antiques, and other unique property, has limited coverage under a homeowner policy. Property you own that would be difficult to value or has a high value should be separately identified and insured.
- Other owned or rented locations: Property and liability coverage for other locations may be limited or excluded entirely. “Other locations” includes but is not limited to: vacation homes, cabins, rental property, farm property, hunting land, and leased property from others for any purpose. The property and liability coverage must be separately addressed.
Disclaimer: This list is not intended to be exhaustive. Additional life changes may affect your coverage needs. Contact your North Risk Partners Risk Advisor for a complimentary coverage review today.