Home Insurance comes in different Forms... If the home is an owner occupied dwelling, the most common form is Homeowners Insurance - Form HO3; if the home is a tenant occupied dwelling, the most common form is a Landlords Package Insurance - Form DP3. Most importantly, a home owner must have the correct form of insurance applicable to cover the property.
There have been many instances where a home has been purchased as an owner occupied dwelling, accordingly, a Homeowners Form HO3 has been purchased to provide coverage for the home; the home owner may or may not have intended to use the home as a rental home thereby renting the dwelling to another person or family. Following an incident, the insurance company may simply deny the claim based on the definitions clause in the policy stating that a homeowners policy is the primary residence of the titled owner. In the past 7 years, this has been a very common issue especially in California where non suspecting speculators buy a home for rental but declare the home as a primary residence. In the least, the situation is a misrepresentation of the risk to the insurance carrier; in summary, the contract is null and void since the use does not match the definitions section of the policy.
Home insurance may or may not include the following coverage; Dwelling (Building Coverage), Other Structures (detached structures), Personal Property (Furniture & Belongings), Loss of Use, Personal Liability and Medical Payments to Others.
Please do consult with a professional if you're not 100% sure of the coverage form you seek. There's no benefit to an incorrect policy form; also, insurance cannot be purchased retroactively to correct a prior error.
For more information or to obtain an automated quote today: http://www.HDAinsurance.com
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There have been many instances where a home has been purchased as an owner occupied dwelling, accordingly, a Homeowners Form HO3 has been purchased to provide coverage for the home; the home owner may or may not have intended to use the home as a rental home thereby renting the dwelling to another person or family. Following an incident, the insurance company may simply deny the claim based on the definitions clause in the policy stating that a homeowners policy is the primary residence of the titled owner. In the past 7 years, this has been a very common issue especially in California where non suspecting speculators buy a home for rental but declare the home as a primary residence. In the least, the situation is a misrepresentation of the risk to the insurance carrier; in summary, the contract is null and void since the use does not match the definitions section of the policy.
Home insurance may or may not include the following coverage; Dwelling (Building Coverage), Other Structures (detached structures), Personal Property (Furniture & Belongings), Loss of Use, Personal Liability and Medical Payments to Others.
Please do consult with a professional if you're not 100% sure of the coverage form you seek. There's no benefit to an incorrect policy form; also, insurance cannot be purchased retroactively to correct a prior error.
For more information or to obtain an automated quote today: http://www.HDAinsurance.com