14 Situations When You Need to Contact Your Insurance Partner
Most people know to contact an insurance agent/broker or insurance company when they need to file a claim, ask about coverage, or change their policy. But many common situations should prompt a call—and often don’t. Keeping your insurer informed could change your coverage needs. In some cases, not telling your agent/broker or insurance company could mean:
- Denial of claims
- Difficulty obtaining future insurance coverage
- Legal action
- Policy cancellation
Some homeowners are afraid that contacting the insurer will raise their rates. Sometimes that’s true. But more often, contacting your insurer keeps you fully protected in the event of a loss.
Contact your insurer if any of the following situations arise.
1. Your financial or legal situation changes
To ensure you have the right protection, alert your insurance partner to any changes in your financial or legal situation.
2. Your lender sells your mortgage
Typically, you’ll receive a letter from your bank/lender that your mortgage has been sold to another lender. If your insurance company isn’t informed, you might receive a threatening-sounding letter from the new mortgage holder that it intends to purchase expensive insurance (that you’ll pay for) to protect its investment. Play it safe, and notify your insurance partner. This will also make the process easier if you have to file a claim in the future.
3. You refinance your home
While your insurance company typically provides proof of coverage at this time, things sometimes slip through the cracks. Even if you refinance with the same lender, tell your insurer.
4. You pay off your mortgage
Congratulations, your mortgage balance is zero. If your taxes and insurance premiums are paid out of escrow, which is generally the case, tell your insurer. Make sure you’re billed directly for insurance and taxes in the future as well. You don’t want your insurance to lapse because you didn’t pay a bill you never received (because no one knew to send it to you).
5. Your mortgage and/or deed changes
If someone on the deed or mortgage changes his/her name because of marriage, divorce or some other reason, notify the insurance company. If someone is added or dropped from the deed or mortgage, tell your insurer. Transferring ownership of the property to a trust also warrants a call.
6. Your family or life changes
Major life changes, such as the death of a spouse or the addition of a child or dog, also warrant a call to your insurance company or agent/broker. Other examples: Parents die and leave a home to their children (or other heirs), or a second cousin moves in and starts paying rent. Even if the new tenant isn’t paying rent but paying other bills (such as utilities) or providing in-kind services, tell your insurer.
7. You receive a legal summons
If you receive a summons, contact your insurance provider for assistance. Many liability policies help pay legal defense fees for claims that fall within the policy’s coverage—for instance, if someone slips on the sidewalk outside your house or your dog bites a delivery person. If any legal action arises from an insurable event, you’re not alone.
8. You renovate or expand your property
Anything that changes the value of your home or the cost to repair or rebuild it is important information for your insurer. If you make major changes without updating your policy and then have some or all of your home damaged, you may not be fully covered. And you definitely want to inform your insurer if you add a pool, trampoline, playground equipment, or a built-in grill or fire pit. The same applies to adding solar panels.
9. You buy watercraft or an RV
Call your insurance agent or broker if you buy a boat or motorhome. These types of purchases present potential liability risks and increase your loss exposure (e.g., damage, theft, uninsured or underinsured boaters). Some marinas or lenders require insurance for watercraft, and some states require liability insurance for standalone RVs. You should also tell your broker/agent if you buy a travel trailer for camping trips.
10. You start a home-based business
Whether you’re going full-time or launching a side hustle, even if no clients will ever visit your home, your insurance partner needs to know. At the very least, you want to make sure that your business equipment and records are protected. You also want liability protection if a delivery person bringing something for your business is injured. Some homeowners’ policies may have limited built-in coverage for home-based businesses, but double-check.
11. You host a big event
You don’t have to tell your insurer every time you have guests over. But if you’re planning a big event—such as a political fundraiser, an in-home concert, or even a large family reunion or wedding—your insurance partner should be notified before the event.
12. You leave for an extended period
If you’re a snowbird who spends the winter in Florida or you’re planning a long trip, talk to your insurance partner. Many policies will only cover an unoccupied building for a limited time. Let your insurance agent or broker know if your primary residence will become a seasonal/secondary home or vice versa. If a house or pet sitter will live in your home during your absence, your insurer needs to know that as well.
13. You rent part of your property
Planning to rent out a mother-in-law apartment or the second unit of a two-family brownstone? Bringing in a roommate to help with expenses? Contact your insurance company. These changes—unless you’re renting to an immediate family member—will probably require some form of landlord insurance.
14. A guest or delivery person is injured
You don’t have to report minor injuries, but any injury serious enough to require medical care is something you should communicate. Homeowners’ policies generally include coverage specifically for these types of occurrences. Even if the injured person refuses treatment and insists that everything is fine, tell your insurer.
When to Let Your Insurer Know
To avoid issues with potential claims or liability, contact your insurance partner in a timely manner if any of the above events occur, certainly within 30 days. Please note that this list is by no means exhaustive. When in doubt, let your insurance company know.
If you have any questions about when to contact your insurance company or broker or would like a free insurance review, please call us at 877-576-5200.
