What can you do if your homeowners’ insurance is canceled?
Call Experienced Public Adjusters for some free advice!
Approximately 60% of American’s own their home, and for some getting homeowners insurance is not an easy process. Insurance companies consider many factors for example:
- How many claims have you filed over a certain period of time?
- Where you live and the risk level of that area for an insurance company.
- Your credit score
Remember insurance is private insurance and they have the right to decide if they want to take the risk of insuring you.
So what happens when you are notified that your home insurance is being canceled? Below are some important things for a homeowner to know.
7 Common Reasons your homeowners’ insurance could get canceled:
1. Home insurance may be canceled after an inspection by your insurance company: If you have an existing insurance policy, they have the option to cancel it when it is up for renewal if the insurance company’s underwriter inspects the home or property and finds a risk that the insurance carrier is unwilling to insure. Potential fire hazards, Old pipes, old roofs, potential fire hazards, kitchens, and other structures may also cause a cancellation of the existing policy. Most of the time the only way an insurer or insurance company would consider reinstating or renewing your insurance policy is if you fix the outstanding issues and provide proof of the complete repairs.
2. Having Multiple claims over a specific period of time: Your home insurance can suffer multiple losses and can be canceled after filing too many insurance claims even though the damages were outside of your control. When an insured files multiple claims it may make your insurance company think there are too many risks they are not willing to insure in your home. This could result in a cancellation of your policy or a higher premium or a possible endorsement excluding coverage or limiting coverage on specific coverages.
If you have multiple claims and they have already been opened or you are worried about opening another one but you have a valid covered loss then you need to have on of our Public Adjusters at Experienced Public Adjusters review your claims to make sure you were paid correctly and then also assess the possible new claim so you can assess the risk and make an informed decision.
3. It Is Very Common for a Roof to be the cause of cancellation to a homeowner insurance policy:If you have an older roof on an older home it increases the level of risk that your insurance company may not renew or cancel your insurance policy. Insurance companies may require inspections depending on the age of the roof or type of roof. For example, if your roof is asphalt shingle and over 15 years old they may want to perform a brittle test to check the repairability of the roof. If the roof is barrel tile they may want to check to see if it can be repaired or if it is even manufactured anymore so they can attempt to match a tile when the roof suffers a loss to a small area. They may again require you to replace the roof in order for them to consider your home insurable with them. “That does not mean another insurance carrier will not insure you!”
4. Living in a high-risk area: An insurer may also decide to not insure any properties in a specific geographic area prone to claims such as hurricanes, floods, natural disasters, such as coastal regions. This could include areas prone to tornadoes, storm surge, hail storms, and wind storm damage.
Remember, insurance companies operate for profit and they have to assess the risk of not just the individual, but the home, the geographic area, and possibly the financial condition of the company and its ability to take on higher risk clients or geographic areas.
5. Pets who we consider part of our families are also factors: Property insurance covers your property/dwelling and the personal property or contents within it, and in some policies cover pets in your home. However, each state has different laws, insurance companies typically maintain a specific exclusion list for pets they will not take the risk of insuring. This can include everything from exotic pets like a snake, exotic monkey, and even certain dog breeds. “Remember non-disclosure of anything when entering into an agreement for an insurance policy could be considered breaching the contract.” So if you have questions you should consult a licensed insurance agent in your state or an attorney.
6. Bad credit is a major factor: Most insurers will now perform a credit check before issuing any type of insurance. This might not make you uninsurable, but it can affect how high and sometimes excessively high your premium will be for your homeowners’ policy.
6. Not paying your premiums: When entering into a contract one party the insurer provides the policy language and coverage in exchange for the consideration offered by the insurer which is the premium payment. If a homeowner or the insured does not pay their insurance premium they will most likely cancel your insurance policy and also put you in a high-risk category. In the insurance fraud, world insurance companies will look at someone’s financial condition when a claim is filed and in our opinion assume that the claim is possibly fraudulent in order for the insured to get desperately needed money. This is a criminal offense. DO NOT COMMIT INSURANCE FRAUD!
Insurance companies have the ability to provide homeowners some flexibility when it comes to premium payment due dates and can offer a 30-day grace period to allow you to catch up on payments (This is insurance company-specific and varies by state). If you catch up on what is payment is late and you pay your entire premium during this afforded grace period, you can most likely maintain your coverage and your insurer will likely pay any insurance claims made during that specific grace period if they meet the terms of your insurance policy.
The next question you will ask if you get a cancellation notice is, “How do I get insurance if my insurance was canceled?”
The State Requires Insurance companies to notify homeowners in advance of exactly when they plan to cancel an insurance policy. If the insurance company decided to cancel the policy right after a policy is put in place, an insurer will typically give a homeowner 45 days’ notice of cancellation.
However, there are different laws and they vary by state for offering a renewal or sending a homeowner a non-renewal notice. In many cases or states, if an insurance company fails to inform you in writing, your policy will remain in place until 45 days after the notice is sent (Not received.)
Depending on the circumstances of why your insurance was canceled, you may have several options to either reinstate your insurance policy or find a new insurance company or insurer.
If you run into a situation where you feel you are not having any luck getting insurance or getting your insurance reinstated you need to contact an attorney in the state you reside or a licensed agent to help you!
If Chubb Insurance, USAA Insurance, Pure Insurance, Netgen Insurance, Cincinnati Insurance, AIG Insurance or any insurance carrier is dropping you from opening a claim or having multiple claims, YOU NEED TO CALL EXPERIENCED PUBLIC ADJUSTERS to review your claims to see if they paid you the amount of money due to you in your insurance policy!