Avoiding Non-Renewal of Your Homeowner’s Policy

A non-renewal notice is a document provided by your insurance carrier to let you know they will not renew your policy once it expires. This document will tell you the effective date and reason they will not renew your policy. In some cases, you might be able to retain your coverage with your carrier by meeting certain conditions. But usually, this notice means you will need to purchase a new policy to protect your home.

You might not have even done anything wrong. Sometimes policies are not renewed because a carrier no longer offers the coverage you have. They may have stopped carrying that specific line of coverage or no longer offer policies in your state or region. We understand that this can be upsetting, but there is usually no need for panic. You might be able to obtain a new policy for an even better rate.

There are numerous reasons for your carrier to issue a non-renewal notice. However, it is essential to understand why they took action so you can move forward with finding new coverage. If your insurer is dropping your coverage due to you filing a claim or having multiple claims, call our public claims adjuster in South Florida for a claims review.

You filed too many claims

One reason for a non-renewal notice is filing too many property loss claims. Claims history is one of the leading reasons insurance carriers drop a customer's policy. Even minor claims submitted in a specific time window can cause your policy not to be renewed. Or, you might have filed too many claims in a particular loss category like water damage, fires, or roof damage.

Your risk changed significantly

Your insurance carrier might also choose not to renew your policy because your risk has significantly changed. For example, if your dwelling is more likely to be damaged by a covered peril than when you first procured the policy, the insurance company may decide to drop your coverage. In addition, it is a possibility that a home inspection highlighted unacceptable risks, or you have made changes to your property that violate your policy terms. These non-renewals often happen in regions like Florida with higher risks for storm surges and hurricanes.

Tips for finding a new policy

Consider these recommendations when you are in the market for a new homeowner’s policy:

• Consider carrying a higher deductible to discourage you from filing multiple claims that may result in non-renewal.
• Maintain your home routinely to prevent water damage and other disaster claims that could cause you financial risks and headaches in the future,
• Learn the claim history of your home. If you purchase a house, request claims filed recently to see if the property might be considered high risk for insurance carriers.

What to do when you receive a non-renewal notice

You should receive a non-renewal notice at least two months before your current coverage ends. Then, contact your insurance company to find out if there is anything you can do to retain your current coverage. If they offer you a way to maintain the coverage, follow their instructions closely. If they will not provide a way to keep your policy, start looking for new coverage right away.

We hope this information on non-renewal is helpful to you. Contact our public claims adjuster in South Florida today if you need assistance with a claim. We are here to help!