When you purchase homeowners insurance, you expect it to be there for you in case of fire, storm damage, or theft. But like any contract, a home insurance policy comes with conditions, and breaking them could result in a denied claim. Here are some situations that might put your coverage at risk, along with practical steps to avoid trouble.
Renting Out a Room Without Notifying Your Insurer
Short-term rentals and long-term tenants alike can change the risk profile of your home. Many policies have specific requirements or exclusions for rental activities, even if it’s just a single spare bedroom. The U.S. Department of Housing and Urban Development (HUD) notes that zoning, safety, and occupancy regulations may also apply when renting out part of your home. Before listing your property or signing a lease, check your policy and talk with your agent; you might need an endorsement or a landlord policy to stay covered.
Leaving the Home Unoccupied for Too Long
If you’re planning to be away for an extended trip, be aware that many insurers have “vacancy clauses.” The U.S. Fire Administration (part of FEMA) notes that abandoned and vacant structures tend to attract illicit activity, such as drug use and vandalism, and are considered intrinsically more dangerous than occupied buildings. Some policies define “vacant” as 30 or 60 consecutive days without occupancy. If you’ll be gone that long, arrange for someone to check in regularly, keep utilities running, and inform your Westwood agent of your plans.
Skipping Required Maintenance
Home insurance isn’t a substitute for upkeep. FEMA emphasizes that routine maintenance, like fixing leaks, cleaning gutters, and repairing damaged shingles, can help prevent costly property damage. If damage occurs due to neglect, your insurer may deny the claim on the basis of “preventable loss.”
Making Major Changes Without Reporting Them
Adding a backyard shed, installing a swimming pool, or finishing a basement can all affect your home’s replacement cost and risk factors. It’s important to update your coverage after renovations so your policy reflects your home’s true value and structure. Failing to do so could leave you underinsured—or worse, with claims denied for unreported additions.
Running a Business from Home Without Proper Coverage
The U.S. Small Business Administration advises that home-based businesses often require separate or additional coverage for equipment, inventory, and liability. Standard homeowners insurance usually excludes losses related to business activities. If you run a business from your home, check whether you need an endorsement or a separate policy.
Staying Covered and Confident
Most coverage issues can be avoided with good communication and proactive care. Your home insurance policy is a living document, something to revisit when your lifestyle, property, or plans change.
Here Are a Few Best Practices:
• Read your policy carefully. Understand what’s covered, what’s excluded, and what your responsibilities are as the homeowner.
• Keep your insurance agent informed. From renovations to extended travel, timely updates help prevent misunderstandings.
• Stay on top of maintenance. Document repairs and seasonal upkeep to show you’ve taken reasonable steps to protect your property.
• Review coverage annually. Schedule a yearly check-in with your agent to ensure your policy still matches your needs.
By knowing the potential pitfalls and taking simple steps to avoid them, you can protect your home, your investment, and your peace of mind with homeowners insurance. After all, the best time to secure your coverage is before you need to use it. Contact Westwood today to ensure you’re covered.
Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.
