How can I get homeowners insurance after non-renewal?

Homeowners insurance comes with a few different types of discontinuation. Your policy can lapse, you can cancel it and you can run into non-renewal. With each being different they will all come with their own set of unique consequences. In this article we will go over some of the differences between each and hopefully help you to understand your coverage a little more.

Receiving a notice of non-renewal can be frustrating for most home owners, we totally understand. The other obstacle you will have to overcome is how to get a new policy after being dropped by your home insurance company.

If you carry a mortgage, more than likely your leader will require you have homeowners insurance. Which makes it a top priority to find a new policy as soon as possible.

What the difference between non-renewal & cancellation?

Both a non-renewal and a cancellation ultimately end the relationship between you and the home insurance company, but they happen due to very different circumstances. Most homeowners insurance companies reserve the right to cancel your policy for any reason within 60 days of the policy start.

Two of the most common reasons for a home insurance policy being cancelled are non-payment of home insurance premiums, and breach of homeowners insurance policy terms.

Not paying your home insurance premiums will ultimately result in the end of your policy. Other obvious reasons are fraud, or lying about a claim. If you do something that is against the law there is a very good chance your policy will be cancelled and your reputation will be tarnished.

When you receive a non-renewal notice it’s typically at the end of your term. Usually, if your home insurance company decides not to renew your policy, you will be notified in advance. You can expect between 30 and 60 days notice. Please keep in mind rules and regulations vary from state to state. If you have a question regarding home insurance in Sacramento, please feel free to reach out to one of our wonderful agents. They would love to answer all of your questions 916 313 6100.

The term “non-renewal” can be created by the home owner. For example, if you found a better rate on your home insurance with Eugene C Yates Insurance Agency and decided to switch to one of our amazing home insurance companies from your current home insurance company. This too is an example of a non-renewal, due to the fact that you will not be renewing with your previous insurer.

Why would a home insurance company issue a non-renewal?

There can be several reasons why a home insurance company may issue a non-renewal notice. It could come up due to a customers profile or a more serious issue. We go over some of the more common reasons below;

If you file too many insurance claims, you might get a notice of non-renewal

If you are on record for filing a lot of insurance claims, you will be looked at as a high risk client by most home insurance companies. Home owners that are thought to come with higher risk usually have to deal with higher rates and the possibility of being dropped by the insurance company.

Your insurance profile may no longer meet the insurance companies requirements

A non-renewal can be issued if you somehow no longer fit into the insurance companies requirements. This can happen by a variety of reasons. A recent home inspection may show a specific risk due to age, wear or damage. You may own a dangerous animal that is thought of as a higher risk. Improvements to your home could possibly violate the terms of your homeowners insurance policy. Another very common issue today is opening a business in your home can create risks that may end up in a non-renewal notice.

Cancellation of home insurance

Most home insurance companies cannot cancel a home insurance policy more than 60 days after it was purchased. That is unless the insured does not meet up to their responsibilities and fails to pay the home insurance premium. Anything fraud related, or misrepresenting yourself on documents.

There are other issues that can result in cancellation. The condition of the home if it looks to more of a risk than initially determined or if there is severe deterioration. If the risk looks to big to insure, the insurance company has the right to cancel your policy within 30-60 days after purchasing the policy.

Is it possible to get a new home insurance policy after being dropped?

Getting a non-renewal notice or being dropped from your home insurance can be extremely frustrating and finding an affordable priced policy can be even more daunting of a task. It is possible to get home insurance in some situations, but all situations and circumstances are different.

If you are in the Sacramento California area and have questions on whether or not you qualify for home insurance, give us a call. The agents at Eugene C Yates Insurance Agency are experts when it comes to home insurance and are always happy to help you get into a better policy. Call us today! 916 313 6100