What to Do If Your Home Insurance Is Canceled?

What to Do If Your Home Insurance Is Canceled?

Tue, Feb 9, 2021 9:26 PM

Home Insurance

You have just received a letter from your home insurance provider saying that your policy is being canceled. What now?

Take a deep breath and quickly get ready to act. To get things back on track, you have a short window so you can keep your house safe and fulfill your mortgage requirements.

Let's take a look at what to do if the insurance policy for homeowners is canceled. You'll learn the difference between cancellation and non-renewal and the reasons for cancellation of insurance for typical homeowners, too.

 

Why home insurance company canceled my home insurance policy?

 

\A canceled policy indicates that before the period is over, the insurance provider terminates an existing policy. In other words, before the initial expiration date, the coverage will end. There are typically only two explanations that would happen if you had the policy for at least two months: you didn't pay the premium or they suspected fraud.

But it may also be possible to cancel or not renew a policy because:

  • A new trampoline or swimming pool

  • Property is vacant

  • Criminal record

  • In your area, coverage is no longer available.

  • There have been so many claims filed.

  • Bad credit score

  • Aggressive types of pets

 

Also Read : How Your Credit Score Impact Mortgage Rates

 

You will want to better protect your property if you have too many claimants, to decrease the risk of damage. That may mean repairing old plumbing that continues to malfunction or installing a home security device to stop theft. Your premiums will be lower at the end of the day as you file fewer claims, and you're less likely to face cancellation.

Things such as credit score, pets, and trampolines rely on your company. Chances are that you just have to find an insurance provider that is willing to take these kinds of risks-they exist; you just have to find them.

If you're not living in your house, to cover the property, you can need landlord insurance or second home insurance. Even if your policy is not canceled but it's sitting empty for most of the year or occupied by someone other than the owner since you don't have the correct policy in place, you could risk rejecting your claims.

 

The difference between being canceled vs. non-renewed

 

The need to get insurance elsewhere results both in a canceled policy and a non-renewal. But there are a few major variations.

If a policy is canceled, before the initial term ends, the coverage will end. As we discussed, except in cases of theft or nonpayment, this rarely occurs. After all, insurance isn't free.

In order to get coverage or get higher coverage for a home not valued as much, insurance fraud can lie on the policy application. It may also involve making claims that are fraudulent.

A non-renewal indicates that the insurance provider has checked the policy in order to extend it but has discovered that the home no longer meets its specifications. Each company has its own rules for underwriting, so what is uninsurable for one company is not necessarily so for another.

In this case, insurance providers must give you adequate notice: up to 20 days for cancellation and 45 days for non-renewal so that you can put in place new insurance.

Only because you have been issued a notice of non-renewal or cancellation by one insurance provider does not mean that your home is uninsurable. In order to boost your eligibility, there are usually things you can do and there are often other companies that will happily secure your home.

 

What to Do If Your Home Insurance Is Canceled?

 

What to Do If Your Homeowners Insurance Is Canceled

 

Contact your current home insurance provider right away if you receive a termination or non-renewal letter. To maintain coverage in force, there might be anything that can be done. If you have missed a payment, for example, you will just need to pay your premium. If you don't live in your home any longer, you might be able to get a landlord policy instead.

Insurers often encourage you to fix the issue before the cancelation date. For example, if your old roof is the reason for your non-renewal, once it's replaced, you may be eligible for coverage.

 

 

Also Read: Signs It’s Time to Replace Your Roof

 

 

Check around for a new policy if the insurance company doesn't provide a solution. Different companies take various risks. For example, one company may have a small list of breeds and may not insure homes that have German shepherds. Regardless of the canine company you retain, another company will happily insure your house.

Look for companies that specialize in insuring "risky" states like Florida and California. Although in these states, other insurance companies have stopped offering new plans, we believe in serving homeowners who most need our solution.

If you have shopped around and can't find takers yet, consider contacting the FAIR plan for your state. The Fair Access to Insurance Requirements (FAIR) is a state-run program that offers insurance to those who are unable to get a private market policy.

 

 

Give us a call if you have been canceled or not renewed to see if we can help you out.

Call Us

 

 

Related Articles: 

A Standard Homeowners Insurance Policy isn't Always Enough

What's Not Covered By Standard Home Insurance

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