At Gibb Insurance Brokers, we are committed to ensuring your home is properly protected. One of the most common reasons homeowners face claim denials is a simple, but costly oversight: failure to disclose key information to their insurance provider.
It’s our job as brokers to ask the right questions, and your role as a homeowner or tenant is to be open about your property’s uses, occupants, and features. Under the Ontario Insurance Act, all relevant details must be disclosed during the application process. Leaving out these details can put your entire policy at risk, whether accidental or intentional.
Take, for example, renting out a basement unit. Declaring this rental situation may increase your premiums by approximately 18%, depending on the insurer. If this is undisclosed and a tenant causes damage, your insurer could deny the claim or cancel the policy entirely, leaving you with a hefty repair bill and no coverage.
Here are some of the most common exposures that must be declared to your broker or insurer:
Additional families in the home:
- Most policies cover up to two families. If you house unrelated individuals or rent out a secondary unit, it may be considered as an additional household.
- Long-term tenants: Renting part of your home? You must inform your insurer. Many policies can include loss of rental income if repairs force the tenant to move out.
- Short-term rentals (ex: Airbnb): Even occasional short-term rentals must be declared. They introduce unique risks that standard home policies may not cover.
- Aggressive dog breeds: Certain dog breeds could increase your liability risk. Be transparent about any pets in your home, especially if you’ve recently adopted one.
- Home-based businesses: Whether it’s a daycare, a hair salon, or an online shop, running a business from home changes your risk profile and needs to be disclosed.
- Wood-burning stoves or fireplaces: These installations increase fire risk and must be noted, especially if added after the initial policy was created.
The best way to avoid denied claims is to disclose everything up front, even if you’re unsure it’s relevant. We’ll help you navigate the fine print and ensure your coverage matches your needs.
our peace of mind is worth far more than a few extra dollars a month. Let’s keep your coverage airtight. Contact us today to review your current policy. 519-736-8228