Insurance providers using drones to SPY on homeowners – 10 things that put your policy at risk

When completing insurance quotes, some people provide inaccurate details without realising they could be invalidating their policy. It’s estimated that 50% of SMEs are underinsured, while 80% of homeowners face the same issue. The consequences can be severe—if your policy becomes invalid, you may be left covering the full cost of any damages yourself.

To protect those who forget or overlook details when applying for coverage, Bionic‘s insurance team has revealed some of the most common mistakes that could invalidate your insurance and potentially leave you without coverage in the event of a claim.

Why you shouldn’t ‘white lie’ on your insurance policy

The insurance team at Bionic, a platform for small businesses, are advising homeowners to be honest about their home insurance policies, as insurers are increasingly using advanced technology, like drones, to inspect properties.

Drones allow insurers to thoroughly inspect properties from above, making it nearly impossible to hide any policy exaggerations or false claims. With the commercial drone market expected to grow by 14% each year until 2030, there’s no doubt that drones will become a standard tool for detecting fraud in insurance policies. Even a small “white lie”, such as the condition of your roof, could get flagged, leading to denied claims, higher premiums, or even the cancellation of your policy.

10 things that could invalidate your home insurance and cost you thousands

In the second quarter of 2024, the average home insurance claim payout was £5,284. However, if you’re found to invalidate your insurance you’ll lose the money and be required to cover the losses out of your own pocket.

Les Roberts, member of Bionic’s insurance team, has highlighted some common areas people neglect to update their insurance providers on:

1. DIY work or repairs

DIY work or repairs, such as unlicensed electrical installations or roofing repairs, can invalidate your home insurance if they lead to damage or accidents due to improper execution. Insurers often require professional standards for major renovations, and if a claim arises from poorly done DIY projects, coverage may be denied, leaving homeowners financially responsible for repairs or liabilities.

2. Structural modifications

Structural modifications, such as removing walls or building extensions, can invalidate your home insurance if not properly reported or approved. Unapproved changes may not meet building codes, and insurers may deny claims for damage linked to these modifications due to increased risks or structural instability. It’s also important to declare the correct roofing material used in your building. Incorrect or unreported roofing materials can also lead to claim denials, as they may impact the overall safety and integrity of the structure.

3. Converting rooms into additional living spaces

Converting rooms, such as attics, sheds or extensions into additional living spaces without notifying your insurer can invalidate your home insurance. Insurers need to be aware of changes in the home’s usage, and unreported renovations may lead to denied claims if damage or accidents occur in the altered space.

4. Failing to maintain smoke and carbon monoxide detectors

Insurance may not cover damages from a fire if your home doesn’t have functional smoke detectors or carbon monoxide alarms. Whilst only 91% of households have a working smoke alarm, 21% report they have never tested their smoke alarm. Neglecting to maintain these safety devices, including not testing their functionality could also affect claims.

5. Not reporting home-based businesses

Failing to declare a business run from your home, for example, childminding or even running a nail salon, can invalidate your home insurance, as standard policies often exclude coverage for business-related activities. If a claim arises from property damage or liability tied to the business, the insurer may refuse coverage, leaving you personally responsible for the costs.

6. Oversharing on social media

Posting about holidays or high-value possessions on social media can inadvertently alert criminals to your absence or home contents, increasing the risk of burglary. If your insurer finds that you contributed to the risk by publicising sensitive information, it could lead to a denial of coverage for claims related to theft or damage.

7. A key under the front porch doormat

Leaving a key ‘hidden’ outside of your home, whether it be in a plant pot or under a doormat, is considered a security risk, as it’s a common hiding spot that burglars can easily exploit. If a break-in occurs and the insurer determines that inadequate security measures contributed to the theft, it could result in the denial of a home insurance claim.

8. Lengthy holidays

Leaving your home unoccupied for an extended period, for example, if you were to go travelling, can invalidate your home insurance. Many policies include clauses that require homeowners to notify their insurer if the property is unoccupied for a certain length of time, as unoccupied homes are at a higher risk for issues like vandalism, theft, and unnoticed damage.

9. Installing a hot tub

Installing a hot tub without notifying your insurer can invalidate your home insurance, as it increases liability risks and requires specific safety measures. If an accident related to the hot tub occurs and the insurer finds that you didn’t disclose its presence, they may deny coverage for any resulting claims.

10. Not maintaining and upkeeping your property

Failing to maintain your property, such as neglecting overgrown trees, allowing pest infestations, or ignoring cracks and mould, can invalidate your home insurance by demonstrating negligence. If damage occurs due to this lack of maintenance, insurers may deny claims, asserting that the homeowner did not take reasonable steps to prevent such issues.

Les Roberts, member of Bionic’s insurance team, added: “Both home and business owners should thoroughly review the terms and conditions of their policies and remain transparent about any changes to their properties, including any new installations or modifications. It’s crucial to understand that failing to disclose these updates can lead to denied claims or even voided coverage – and for businesses, it could be the difference between staying open or being forced to close after a significant incident.

“By staying informed and proactive, home and business owners can protect themselves, safeguard their investments, and ensure their insurance policy remains valid, providing peace of mind when it matters most.”