Homeowner insurance is supposed to protect you when things go wrong. But sometimes, the things you keep in your home can put your coverage at risk. Many people are unaware that certain everyday items can lead to a denied claim or even a policy cancellation. Insurance companies look for risks, and some everyday belongings can raise red flags. To avoid surprises, it’s essential to be aware of potential issues. Here’s what you need to watch out for to keep your homeowner insurance in good standing.
1. Trampolines
Trampolines may seem like harmless fun, but they pose a significant concern for insurance companies. Injuries from trampoline accidents are common, particularly among children. If someone gets hurt on your trampoline, you could be held responsible. Some insurers won’t cover homes with trampolines at all, while others require safety nets or specific fencing. If you have a trampoline and don’t tell your insurer, a claim related to it could be denied. Always check your policy and talk to your agent before setting one up in your yard.
2. Certain Dog Breeds
Dogs are part of the family, but some breeds are seen as higher risk by insurance companies. Breeds like pit bulls, Rottweilers, and Dobermans often appear on restricted lists. If your dog bites someone, you could face a lawsuit. Many insurers will deny coverage or claims if you have a breed they consider dangerous, even if your dog has never shown aggression. It’s important to be honest about your pets when applying for homeowner insurance. Hiding this information can lead to denied claims or canceled policies.
3. Swimming Pools
A swimming pool is a great way to cool off, but it’s also a significant liability. Pools increase the risk of accidents and drownings, especially when not accompanied by proper fencing or safety features. Some insurance companies require you to install a locked gate or a pool cover. If you don’t follow these rules, your claim could be denied if someone gets hurt. Even if your pool is above ground, it can still be a problem. Always let your insurer know if you add a pool to your property.
4. Home-Based Businesses
Running a business from home is more common than ever, but it can affect your homeowner’s insurance. Standard policies usually don’t cover business equipment or liability for clients visiting your home. If you file a claim for stolen business property or an injury to a client, your insurer might deny it. You may need a separate business policy or a rider to cover these risks. If you work from home, talk to your insurance agent about what’s covered and what’s not.
5. Aggressive Home Renovations
Renovating your home can increase its value, but some projects can also increase your risk. Significant changes, such as adding a second story, building a deck, or finishing a basement, can affect your coverage. If you don’t tell your insurer about these changes, your policy might not cover damage related to the renovation. Some projects, such as removing load-bearing walls or performing electrical work yourself, can even void your policy. Always report major renovations and obtain approval before commencing work.
6. Wood-Burning Stoves
Wood-burning stoves are cozy, but they can also pose a fire hazard. Insurance companies often require inspections and proof that your stove meets safety standards. If you install a stove without telling your insurer, you could face a denied claim if there’s a fire. Some policies exclude coverage for homes with wood stoves unless you follow strict guidelines. If you plan to use a wood-burning stove, ensure it’s installed by a professional and complies with all local codes.
7. Old or Faulty Wiring
Older homes often have outdated wiring, which increases the risk of fire. Insurance companies may deny claims if your home’s electrical system isn’t up to code. If you buy an older house, have the wiring inspected and upgraded if needed. Some insurers won’t cover homes with knob-and-tube or aluminum wiring. If you know your wiring is old, don’t wait to fix it. Upgrading your electrical system can help you avoid denied claims and keep your home safe.
8. Exotic or Illegal Items
Some people keep unusual pets, such as snakes or monkeys, or collect items that are prohibited in their state. These can be a big problem for homeowner insurance. If your pet injures someone or your illegal item causes damage, your claim will likely be denied. Even legal exotic pets can be excluded from coverage. Always check your policy and local laws before bringing anything unusual into your home.
9. Unreported Home Security Risks
If you have broken locks, missing smoke detectors, or other security issues, your insurer may deny a claim after a break-in or fire. Insurance companies expect you to maintain a reasonably safe home. If you don’t fix obvious risks, you could lose coverage. Regularly inspect your home for potential problems and address them promptly. It’s a simple way to protect your insurance and your property.
Protecting Your Homeowner Insurance Coverage
Everyday items can seem harmless, but they can have a significant impact on your homeowner’s insurance. The key is to be honest with your insurer and maintain your home’s safety as much as possible. Report any changes, follow safety rules, and ask questions if you’re unsure what is covered. Taking these steps can help you avoid denied claims and maintain your coverage.
Have you ever had a claim denied because of something in your home? Share your story or tips in the comments.
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