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Dropped by your homeowners insurance company?

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Maria Neira
May 23, 2021

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.

What is an insurance non-renewal notice?

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.

Reasons for receiving a non-renewal notice

There are several reasons why you could receive a non-renewal letter.

  1. Changes by the insurance carrier
  2. Your home no longer meets underwriting guidelines
  3. Your claims history
  4. Change in your insurance profile

Changes by the insurance carrier

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.

Your home no longer meets underwriting guidelines

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: 

  • You own a dog breed that is considered dangerous
  • Changes made to a home violate the policy’s terms
  • A business was added to your home
  • You no longer live in the home (renting the property).
  • A recent home inspection found an unacceptable risk (pool, trampoline, age of the roof, HVAC system, etc.)

Your home claims history

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.

Change in your insurance profile

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.

Florida homeowners insurance companies

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.

  • Universal Insurance Co. of North America was approved to drop 13,294 personal residential policies.
  • Gulfstream Property & Casualty was approved to cancel about 20,311 personal residential policies. 
  • Southern Fidelity Insurance Co. was approved to nonrenew approximately 19,600 personal residential policies. 

How to get home insurance after being dropped

If you receive a homeowners insurance non-renewal notice, taking certain steps can ensure your home remains insured and you are not penalized financially.

1. Find out why your policy is not being renewed

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.

2. Keep timing in mind

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. 

3. Shop around and compare quotes 

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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