What Happens if Your Insurance Company Non-Renews Your Policy?

In general, people tend to believe that insurance will always be available, yet insurance companies are businesses, and they are constantly assessing their risk just like any other business. They even reserve the right to revoke your policy.
 
Whether you own residential or commercial property, most people like to enjoy consistent coverage from the same provider for many years.  It is always possible that coverage may be denied or cancelled for a myriad of reasons.  
 
Why Would Your Policy Be Cancelled?
Insurance providers must ultimately make decisions that allow them to be profitable. They need to be able to evaluate risk and minimize loss, which may mean that if your covered property is posing too much risk or expense for them to continue coverage, your insurance company may cancel your policy.
 
These are some basic explanations why your insurance coverage could be cancelled or non-renewed:
 

• The property is in disrepair or requiring maintenance or renovation
• A criminal record, false declarations, or “moral hazard” exists
• The insurance company is reducing its policies in your area
• There was a nonpayment of policy or missed payments
• You have filed too many claims
• Changes in your situation occurred (moved to a new location, different property to cover, etc.)

 
What Options Do You Have if You Receive a Non-Renewal Notice?
If you receive a notice of cancellation of your coverage from your insurance provider, you still have some options available. You have a limited amount of time to secure new coverage. Insurance companies typically send non-renewal warnings at least 60 days before your policy expires.
 
Find out if there is anything you can do to stop the non-renewal by getting in touch with your insurance agent. For example, if you take particular action to lower risk for your property, some insurers might decide to continue your coverage.
 
You Should Evaluate Any Changes
If you are planning to plead your case with your insurance provider, it can be worthwhile to evaluate any changes that have occurred and resulted in your cancellation.
 
If you have made any improvements and upgrades to your property that can help you retain your insurance policy, it may be worthwhile to provide the evidence and documentation.
 
Here are a few examples of how evaluating changes can be beneficial:
 

• Your previous claims were from a different address. Consider how your new property poses little to no risk.
• Notify your agent of any changes in property owners or occupants.
• Take necessary steps to show repairs and maintenance records, which can show there is less risk by ensuring your property.

 
You Should Highlight the Value You Add as a Policyholder
If you have been a long-standing policyholder with your insurer, remind them of your commitment to them and the years of trust you have placed in them as your provider. Go the extra mile in communicating the steps you have taken to improve upon their concerns and reiterate how much you value their service.
 
Contact an Insurance Adjuster
If you have a new, underpaid or denied property damage insurance claim, contact Reliant Insurance Adjusters to see how we can assist in the recovery of your property damage insurance claim. We also provide free insurance policy reviews so we can provide guidance to make sure your property has adequate insurance coverage.