Homeowners sometimes forget that getting homeowners insurance is a two-way street. Even if an insurance carrier has previously agreed to insure you, there are instances where the relationship can end. This can be shocking to homeowners who receive a letter from their insurance provider that they have either canceled their policy or chosen not to renew it. While the insurance provider typically gives notice, homeowners can still feel unsure about how to proceed. Each case depends on its own unique set of facts, but generally, here are some tips about what to do when receiving notice of cancellation as well as some common reasons why insurance gets canceled.
Potential Tips For What To Do When Finding Out About Homeowners’ Insurance Cancellation
Perhaps the worst thing to do when finding out about cancellation is to do nothing. Here are three steps homeowners can consider to ensure their property remains protected in the event of a cancellation.
- Call and Inquire About Why the Cancellation Happened
Contact the insurance carrier and ask why the cancellation has occurred. Insurance providers are generally required to provide a reason for why the policy will no longer be renewed. You may want to contact an insurance attorney to discuss your options.
When an insurance company provides its reasons, see if there is a chance that you can retain coverage. For instance, there may be canceled coverage due to some aspect or condition of the property. If the homeowner can correct or remove that concern, the insurance provider may be satisfied to keep the policy. Alternatively, the insurance provider might agree to provide coverage in exchange for a higher monthly payment.
- Act Timely
Whatever a homeowner ultimately does—stay with the old company or pursue a policy with another insurance company—it can be important to act quickly. Many mortgage providers require there to be continuous insurance coverage, meaning that there cannot be gaps in coverage.
- Research and Consider Your Options
If an insurance provider sends you a notice of cancellation—even if you had previously been satisfied with the company—it may be time to consider your options elsewhere. See if other companies are willing to extend coverage and ask for a quote. Perhaps the quote can be used to discuss your options with the previous insurer, too.
Common Reasons Homeowners’ Insurance is Cancelled
Insurance policies will specify the legitimate reasons that they can cancel coverage—and those reasons can be numerous. Here are the some examples that an insurance company decides to cancel or deny coverage.
Whenever a homeowner has a pet, it is important to review the terms of the policy to see what it covers. Some insurance policies will exclude pet coverage altogether. Homeowners with pets would then need to get coverage with a different company or may need to purchase pet insurance separately.
Even if the homeowner’s insurance policy covers animals, it may only cover certain ones. For example, some insurance policies have breed restrictions. Additionally, the policy may only cover a certain number of animals.
Certain features of a home may be deemed more likely to result in injury. For instance, there are many accidents each year resulting from trampolines and pool diving boards. Features that have a higher likelihood of resulting in accidents may result in the insurance company assuming a greater risk when it insures them. As a result, the insurance company may consider them accordingly when providing a quote for coverage.
Filing too Many Claims
While insurance is there to protect your property when covered damage occurs, there can be times where they decide that insuring the homeowner is not worth the risk anymore.
Failure to Maintain Property
If a homeowner fails to maintain the property, the insurance company may decide not to renew the policy. The policy oftentimes imposes a duty to maintain the property.
Insurance Company Left the State
It can be common for insurance providers to leave high-risk states with many claims resulting from natural disasters. For example, this occurred earlier in 2022 with United Property & Casualty Insurance Company, which was one of the largest home insurers in Florida.
Was Your Insurance Canceled? Speak to a Homeowners’ Insurance Attorney
Contact our office today at 321-283-5888 to speak with one of our homeowners’ insurance attorneys if you would like to discuss the particulars of your situation. We present the material contained on our website and pages, including this Blog, for general informational purposes only. It does not constitute the rendering of legal advice and does not create any attorney-client relationship. If you need legal or other professional advice, you should consult with legal counsel about your particular facts and circumstances. Contact us to see how we may be able to fight for you!