How to get homeowners insurance after nonrenewal

You or your insurance carrier can initiate a homeowners insurance renewal. Either you can let your policy expire or you might receive an insurance notice from your carrier advising you that your policy will be terminated. To ensure that your coverage does not lapse, you should start looking for a new policy for home insurance with another company.

There is a distinction between home insurance cancellation and nonrenewal . If the insurance company finds that the information provided in the application was fraudulent or that you have not paid your premiums, they cannot cancel your policy within the first 60 days. You will be notified in writing if your carrier decides to cancel or renew your coverage.

Why wasn’t my homeowners insurance renewed?

Many homeowners are surprised to receive an insurance notice notifying them that their policy is no longer valid. Although it is rare for homeowners to be notified by their insurance carrier of nonrenewal, it can happen occasionally. You may be notified about nonrenewal for the following reasons:

You may be considered high-risk in your area.

A provider of insurance may decide not to sell coverage in your region or reduce the number policyholders. A carrier might have suffered high losses in a particular zone and decides to reduce its liability. A one year moratorium was issued by the California Insurance Commissioner to prevent insurance companies from not renewing more than one million home insurance policies in areas most affected by wildfires.

Your past may influence renewal

Your carrier may not approve of you being insured if you have made costly homeowner insurance claims. A carrier might not offer you coverage for another year if you make too many late payments. It may seem unfair, but carriers can decide not to extend your coverage after your policy expires for multiple reasons.

Your home is empty

Many homeowners don’t realize that standard home insurance policies often include a vacant clause. An insurance company can cancel or refuse to renew a home’s insurance policy if it is vacant and unoccupied for more than 30 days (depending on where the house is located).

Underwriting may be discontinued by the insurance company

Rarely, an insurance company may close down or cease selling the homeowners insurance that you have purchased. The carrier will inform you of this and let you know so that you can find another insurance company.

How do you get coverage after nonrenewal?

Every state has its own regulations regarding how carriers can issue non-renewal notices. However, the average notice period before nonrenewal begins is 45 days. As long as you don’t wait, you will have plenty of time to search for new coverage. You should include the reason why your homeowners insurance policy is ending. You can ask for clarification or contest the non-renewal by calling your insurance provider’s consumer relations division or contacting the state insurance department.

No matter whether you disagree with the nonrenewal decision, it is a good idea to start looking for new home insurance policies in case you don’t get favorable news. You could lose your coverage and be at risk if you let your existing policy lapse. You must also keep your home insurance current if you have mortgages. If you don’t have your home insured, your lender may purchase a new policy for you (often at higher costs).

Many insurance companies offer quick online quotes. Before you decide on a new company, compare the rates and coverage options. You may be able save the quote online and then return to purchase coverage. To avoid a lapse in coverage, make sure the effective date of your new home insurance policy is set to the day after (or the day before) the expiration of your current policy. Send a copy of your new policy to your lender once you have purchased it and set the effective date.

You may have limited options or an easy way to get new home insurance depending on the reason you did not renew. Finding new coverage can be difficult if you are unable to renew due to claims, payment activity, or because your home is in a high-risk region. Fair Access to Insurance Requirements (FAIR), also known as shared-market coverage, is available in many states. It helps individuals who have difficulty getting insurance to find affordable homeowners’ insurance.

Questions frequently asked

What is a homeowner’s insurance notice of non-renewal?

Your home insurance policy may be terminated by an insurance company. This letter will explain why your home insurance policy is being terminated and give you an opportunity to find new coverage.

What are the steps to get homeowners insurance after I have stopped renewing?

You can shop around and get quotes from several home insurance companies to find the best rates. Many states offer FAIR plans that make it easier to get homeowners insurance.

Can insurance companies cancel my home insurance policy?

Before cancelling or declining to renew your policy, insurance companies must adhere to certain rules. Although these guidelines may vary from one state to another, most insurance companies must give you written notice prior to cancelling or declining your policy. Usually, this is between 30 and 60 calendar days. Most insurance companies cannot cancel your policy within 60 days of coverage, unless you have misrepresented yourself on the application or failed to pay premiums. Insurance companies have greater flexibility if they decide to cancel your policy before it expires.