When Your Homeowners Insurance Policy Is Canceled
Insurance is supposed to be there for you when you need it most — until it’s not. Your insurance company may decide to drop you suddenly, leaving you with no insurance and your home unprotected.
Once you lose your policy, it can be difficult to get another one. This is especially true in high-risk areas, like Florida, where hurricanes and tropical storms are common. You may also get dropped from your policy if you file too many claims. If your home is inspected and does not meet the underwriter’s guidelines, then the policy could also get canceled. A cancellation could also occur if you engage in insurance fraud.
Many insurance companies are also refusing to cover certain areas, particularly those where claims are common. Some companies will set a policy to be non-renewed instead of canceling it in the middle of the policy period, so you’ll have a little bit of time to get a new insurance policy.
In any case, if your insurance gets canceled, it can be a frustrating experience. Here’s what you should do.
Contact Your Agent
Get the reasons for the cancellation. Ask your agent if there is anything you can do to fix the situation. If your policy is being canceled due to payment issues, ask your insurer about a payment plan so you can get caught up.
Reduce Your Risk
If your policy was canceled because you are considered a high risk, see if you can address issues. For instance, in Florida, one of the biggest issues is being in a high-risk hurricane area. While you may not want to move, you may want to strengthen your home to make it more resistant to storms. You can do this by replacing your current roof with a metal one. You may also want to install stormproof windows and hurricane shutters. If you live in an area prone to wildfires, keep the area clear around your home and get rid of dry grass.
Look for a New Policy
Once you get the cancellation letter, start shopping for a new home insurance policy right away. Go online and get quotes from multiple insurance companies to find the best policy for your situation. What does it cover? How much is it?
In some cases, homeowners in certain areas have a hard time getting approved for insurance coverage. There may be non-standard policies that can help. Some of these policies have more flexible eligibility requirements.
Seek Legal Help
Homeowners insurance is meant to help homeowners when their home sustains damages due to weather-related conditions. When a policy is dropped or the insurance company fails to provide coverage, it can be a frustrating situation.