Evolving Lifestyles Can Cause Homeowners Insurance Pitfalls
January 7, 2016
Your homeowners policy is not as simple as you may think. It’s a legal contract and that means there are definitions, exclusions, and conditions that both you and the insurance company must adhere to in order for coverage to exist. Just because you have paid the premium doesn’t mean there is coverage!
With so many of us on the go, there are a few situations which are causing problems for homeowners across the country.
- Job Relocations: Being transferred is exciting and creates new opportunities. It can also create a coverage pitfall for your homeowners insurance. What happens if you move from your home and leave it vacant for a period of time until it sells? Do you have coverage? What if you decide to rent it out instead of selling it due to the high demand rental market? Does your home insurance still provide coverage?
- The Fixer-Upper: If you are considering broadening your home buying options by buying a fixer-upper, there could be an extended period of time after your closing before you move into it. You’ve bought and paid for a homeowners insurance policy, but do you have coverage before you actually move in?
- Short Term Rentals: Seems like a great idea. Rent your home out during the big local event to an out-of-towner and make some quick cash. You can stay with your friend! But does your home insurance still provide coverage if it is being used as a rental property, even if for just a short period of time?
There are all common occurrences in today’s mobilized society. Unfortunately, insurance policies and their contractual language have not advanced as quickly as our lifestyles. There are some ways to solve the problems presented by the above lifestyle challenges. Your first step is to speak with a knowledgeable insurance agent that truly understands how the definitions and exclusions inside a home insurance policy may affect you and what potential solutions exist. You don’t want to find out you have a problem after damage has occurred. Consult your insurance agent. If they don’t have answers for you, perhaps it’s time to speak with someone that doesn’t just sell insurance. Find a true insurance professional that can be a part of your financial planning team.