Receiving a non-renewal notice from your homeowners insurance company isn’t a pleasant experience. But understanding the specifics of the situation and what your options are can help put you on a path forward. Learn what a non-renewal notice is and how to get homeowners insurance after being dropped.
A non-renewal notice is a letter sent by the insurance company informing you they will not be renewing your homeowners insurance policy.
A non-renewal is sent around the policy’s expiration date. Rules vary by state, but in general your insurance company must give you a required number of days’ notice. The insurer must also explain the reason for the non-renewal in the notice.
There are several reasons why you could receive a non-renewal letter.
Your insurance company may choose to discontinue your insurance due to changes in the products they offer or the areas they provide coverage. More often these changes are due to location. If you live in an area that has experienced an increase in disasters such as hurricanes, tornadoes, extreme winds, or hail, your insurer may find that certain coverages are not financially viable.
If the risk that you represent is too great, your insurer is not likely to renew your policy. Some examples of an increased risk in the home include:
If you have an extensive claims history, your insurance company will perceive you as a high-risk customer. It largely depends on the size and nature of the claims you made, but if you file a claim or two, your insurer may choose to not renew you.
Another reason you may receive a home insurance non-renewal notice is that your insurance profile no longer meets the company's requirements. For instance, an insurer may drop you a customer if your credit score recently took a hit, you failed to pay your premiums on time, you engaged in fraudulent behavior, or you now have a criminal record.
Many Florida residents, in particular, are feeling the pains of being dropped by their homeowners insurance company. Just recently, three Florida-based companies were approved by the state regulator to drop more than 50,000 policies.
If you receive a homeowners insurance non-renewal notice, taking certain steps can ensure your home remains insured and you are not penalized financially.
If you disagree with the insurance company’s decision to not renew your policy, you can try to negotiate with them. For example, if you missed a payment or rectified an issue, you may be able to have your policy reinstated.
If your homeowners insurance company isn’t open to negotiations and you are still not happy with the resolution, you can bring it to the attention of your state's department of insurance for a formal review.
State requirements vary, but in general your insurance company should give you 30 to 60 days’ notice before your coverage ends. Don’t ignore the cancellation date. Get started resolving the issue if that’s an option, or start looking for new homeowners insurance with another company.
If you need to find new homeowners insurance, the good news is there are a lot of options. The key is being sure to get quotes and compare the coverages offered. Homeowners insurance can be complex, so you may want to work with an insurance agent or broker that represents multiple insurance carriers so that you can compare homeowners insurance quotes easily.
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