The Internet has made it easier than ever to buy a home insurance policy. Unfortunately, that convenience may come at a serious price: the invalidation of many people’s home insurance policies. While deliberately failing to disclose various points to an insurer can render a home insurance policy invalid, a similar problem arises when an online insurance application fails to ask certain important questions. The bottom line is that there is no point in maintaining a home insurance policy unless it is based on true risk; for that to happen, full disclosure is an absolute must.

Upfront Honesty is Critical when Applying for Home Insurance

All too often, homeowners paint an especially rosy picture for insurance companies in the hopes that they will grant them lower premiums. While skimming over a few important facts may save money in the short-term, it could cost huge amounts of money over the long haul. When the time to file a claim arises, it’s fairly easy for an insurer to discover that a property has been renovated or that other changes have been made. If the insurance company has not been apprised of those changes, the policy could be deemed null and void – and the claim could be rejected.

Notifying an Insurer of Changes in Circumstances is Key

A home insurance policy is only valid if it reflects the current condition of a home and those who live in it. For instance, if somebody who lives in the home is convicted of a crime, the insurance company must be informed of that fact. Similarly, if the homeowner or another occupant starts working out of the house and doing business there, the insurance company has to be told about it. Otherwise, a claim could easily be denied by the insurance company and the policyholder can be left high and dry.

Higher Premiums and Greater Peace of Mind

Home insurance is the only sure fire way to offset the unforeseen issues that can arise in and around a home. While paying a higher premium each month may not seem worth it, it is far better than paying less and ending up with an invalid policy. Higher premiums that reflect the true condition and circumstances of a home are vastly preferable to lower premiums that provide no real protection. Paying less for invalid insurance is akin to throwing money away; paying more for a top notch policy, on the other hand, is an investment in the future.