The Risks of Failure to Correctly Report the Use of a Home or Building

Introduction

When taking out home insurance, it is crucial to specify the correct use of a home or building. Whether it concerns private residence, rental or business use, this information determines the policy conditions and coverage. Failure to correctly report use can lead to serious consequences, such as a rejected claim or even invalidation of the insurance. In this blog we discuss the risks of not correctly reporting the use of a home or building and how you can prevent this.

1. Why Is Correct Usage Reporting So Important?

For whom: Homeowners, landlords and entrepreneurs who own a property and want to insure it.

Reasons:

• Assessment of risks: Insurers determine the premium and coverage based on the use of the property.

• Specific risks: A home that is rented out entails different risks than a home that is occupied by the owner.

• Preventing conflicts: An insurer can reject a claim if it appears that the use of the property does not correspond with the information provided.

2. What Are the Consequences of Incorrect Information?

1. Rejection of Damage Claims:

   • If a home is rented out, but declared as private occupancy, an insurer may reject a claim because the policy conditions do not apply.

2. Increased Deductibles:

   • Incorrectly reported use may lead to additional costs in the event of damage.

3. Declaring the Policy Invalid:

   • In serious cases, an insurer may void the policy, meaning there is no coverage whatsoever.

4. Financial and Legal Consequences:

   • In the event of a rejected claim, the costs may be entirely at your own expense, and this may result in legal conflicts.

3. How do you report the use correctly?

1. When taking out the insurance:

   • Indicate clearly whether the property concerns private residence, rental, business use or a combination thereof.

2. In case of changes:

   • Inform your insurer immediately if the use of the building changes. For example, if you decide to rent out part of the house.

3. Ask for advice:

   • Finass Verzekert helps you correctly report use and can draw up a suitable policy.

4. Which Use Situations Do You Have to Report?

1. Own occupancy:

   • If you live in the house yourself and do not rent out any rooms.

2. Rental:

   • Whether it concerns renting out part of the house (for example rooms) or the entire building.

3. Business use:

   • For example, if you use part of your home as an office or practice space.

4. Vacancy:

   • If the building is temporarily not in use, for example during renovations or when looking for new tenants.

5. What Are the Benefits of Correct Reporting?

1. Full Coverage:

   • You can be sure that you are insured for the specific risks of your situation.

2. Faster claim handling:

   • In the event of damage, the insurer can pay out quickly and without conflict.

3. Peace of mind:

   • You avoid surprises and know that your investment is well protected.

4. Discount on premiums:

   • Some insurers offer discounts for specific use cases, such as rentals with approved tenants.

Why Choose Finass Insures?

1. Expert advice: The Finass Verzekert team will help you correctly report the use of your home or building and provide tailor-made insurance.

2. Flexible solutions: Whether you own a monument, a rented home, or a student house, Finass Verzekert offers suitable solutions.

3. Reliable partners: Finass works with renowned insurers to offer you the best possible coverage.

Conclusion

Correctly reporting the use of your home or property is essential to ensure full coverage and peace of mind. Incorrect information can lead to denied claims or invalidated policies. Finass Verzekert offers expert advice and solutions that match your situation, so that you are insured with peace of mind. Contact us to discuss your options and find out how you can limit your risks.