Material Changes

Life Changes: Is your insurance up to date?

When talking to your insurance company or broker, the conversation may turn into a script that sounds automated. They may ask you, “Are there changes to your property?” or, “Are there new people living with you?”

Their questions are for good reason. They want to make sure that there are no material changes, a change that may affect your risk or rating for insurance purposes.

For example, you own your home and have a homeowners insurance policy that protects you and your home on the condition that you live there, but you decide to rent out the whole house.  This is considered a material change, and you need to notify your broker or insurance company. By renting out your home, your homeowner insurance may no longer cover your home, at which point a landlord insurance policy is appropriate to protect your property.

Other things that may impact your insurance coverage include getting a new pet (some dog breeds and exotic animals have restrictions,) operating a business out of your home, and using the car for rideshare or app-based services.