You may be in a position where your home insurer has dropped you. Many people are in this situation. It is important that you understand your rights.
It can be stressful to lose homeowners insurance. This is also called nonrenewal, cancellation or termination of coverage. This can be a very stressful situation, but you don't have too. Four simple steps can help you get on track to get a new policy.
Your rights under a policy
You are entitled to receive written notification at least 30 calendar days prior to the cancellation or non-renewal of your policy. This allows you to search for a different insurer, and prevent paying for coverage gaps.
You can file a claim with the state insurance regulator if your home insurance provider does not give you a written warning. They will review your complaint and decide if they want to take further action.
Your insurance cancellation rights
If a homeowner fails to pay their premiums within 60 days of the purchase date, or commits fraud, they can be cancelled by law. An insurer may also cancel a homeowners policy if their property is deemed to be a high-risk item, like if it's been damaged in a fire or stolen.
Another reason for dropping a policy is if the condition of the property changes. As an example, insuring the home of a person who has had a house fire may cost more than insurance for a vacant vacation property.
It's also a good idea to check your credit score before getting a homeowners policy. If you have a low credit score, it can be difficult to get a loan and insurance companies might view you as more of a risk.
If you fail to pay your premiums for too long, then you can have your home insurance cancelled. A lapse is when you stop paying your insurance premiums. Most companies have grace periods that allow policyholders to catch up and reinstate their coverage.
You may also be dropped from your home insurance policy if you've made several claims or if the risk level of your home has changed. If your home has been neglected or there haven't been many claims, the risk level of your home can change.
Your rights as an insurance policyholder
It can be difficult to get insurance after a policy has been dropped, especially if you have a bad credit score or other issues. You should speak to a professional financial advisor, who will help you select the best coverage for your situation and budget.
You can find online brokers to help you compare quotes and options. As they specialize in many home insurance companies, they can give you an idea of which are the best options for your profile.