What to do if you insurance company drops you?

At the end of the day, insurance companies have to meet their bottom lines to remain in business. They must be able to assess risk and avoid as much loss as possible.
 
Unfortunately, this can mean your insurance provider may cancel your policy if your insured property (home, auto, etc.) is posing too much risk or cost to continue coverage. I feel compelled to write about this because this just happened to a family member of mine and I am assisting her with obtaining new insurance coverage.
 
While most individuals have continuous coverage from the same provider for several years, others may encounter a hiccup or two and learn their policy is being non-renewed or canceled.

Common Reasons an Insurance Company May Cancel Coverage

There are a variety of reasons why your insurance company may choose to cancel or non-renew your insurance coverage, and it is important to understand why in order to move forward and even potentially retain your coverage.
 
The following are common reasons why your provider may choose to cancel or non-renew your insurance policy.

• Insurance company is reducing its policies in your area
• Non-payments or missed payments
• Filed too many claims
• Being a “moral hazard” (having a criminal record or making false declarations)
• Changes in your situation (moved to a new location, different property to cover, etc.)

What You Should Do If Your Insurance Company Drops You

Should your insurance company choose to cancel your policy, your timing will be everything in order to remain covered. Here are a few things to consider if your insurance company cancels or non-renews your policy.

Review any Claims You Have Made

Insurance companies are in the risk management business, which means they are frequently assessing how insuring you or your property impacts their bottom line. If you have filed several claims and are notified that your policy is being cancelled, this could be why.
 
Take some time to review the many aspects of your claims, including:

• Total claim amount
• Cause for claim
• Whether they were for the same or multiple properties

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. Providing substantial evidentiary support that things have changed for the better and why it is going to be different can help you retain your insurance policy or provider at the very least.
 
Here are a few examples of how evaluating changes in your situation can prove beneficial.

• You recently moved and your previous claims were from a different address. Consider how your new location poses little to no risk for them.
• Establish any changes, such as household residents, more professional stability, etc. that could also show how covering you and your property is less risky to them now.

Show The Value You Add to Your Insurance Provider

Have you been with this insurance company for years? Have you trusted them to cover all aspects of your property, such as cars, homes, life insurance etc.?
 
If you have been a long standing policyholder with them, let them know. Remind them how many years you have chosen them to protect you.  If you have made upgrades to your home, it is important to let them know.  In some cases where the roof or plumbing system in your home is older, the insurance company may require you to replace them in order to continue insuring your property.
 
Sometimes insurance companies feel they may have more exposure in a certain area, or the claim costs have increased and they can non-renew your policy.  If this happens to you, then you will need to seek coverage elsewhere.
 
Contacting An Insurance Adjuster Can Help Too

​If you discover that your insurance company is cancelling your policy, you have to act quickly. There are still some options and steps you can take to keep your policy and provider should you choose.
 
Consulting or hiring an insurance adjuster can help provide support to any claims that have been made and help properly assess any future claims. If your policy is getting cancelled, you should contact Reliant Insurance Adjusters to see how we can help.