how you can lose your homeowners insurance policy

Things that Can Cancel Your Home Insurance Coverage

How you can lose your homeowners insurance coverage.

If you have homeowners insurance in Plano, Texas, you might be surprised to learn that there are certain things that can result in the cancellation of your policy or a denial of coverage. If you want to keep your coverage, make sure you avoid these issues.

Insurance Fraud

If you commit fraud and your insurance provider finds out about it, you risk your home insurance coverage being denied or your policy being cancelled. A common example of fraud is lying on your insurance application. For instance, claiming that your home is a single-family dwelling when there are actually multiple families living inside it would be considered fraud. Keep in mind that it is your home insurer’s job to verify the information that you supply during the application process, so instances of fraud are almost always uncovered.

Excessive Claims

If you file an excessive number of claims in a short amount of time, this will raise a red flag for your homeowners insurance provider. Having an extensive claims history can result in your home insurer labelling you as a high-risk homeowner. As your insurer will not want to assume your risk, they will likely cancel your policy.

Illegal Activities

Finally, if illegal activities are taking place under your roof, you are jeopardizing your home insurance coverage. It’s important to understand that your coverage will be compromised even if you are not aware of the illegal activities that are taking place. If you file a claim for an issue related to illegal activity, your insurer would deny you coverage for the claim. There’s a good chance that they would also cancel your policy completely.

These are some of the things that could cause you to lose your home insurance coverage. Do you have additional inquiries regarding your homeowners insurance in Plano, Texas? If so, don’t hesitate to contact the experts at Tri-Star Insurance/HUB International. We are ready to assist you with all your coverage needs today.