Why Your Homeowners Insurance May Be Canceled?
Home insurance may be canceled for different reasons. But for whatever reason, the next thing you should do is to look for new home insurance coverage before the cancellation date to make sure your house would be covered all the time.
An insurance company usually sends written notice and allows you to shop for new insurance for about 30 days.
If the insurance company finds an unacceptable risk such as fire hazard, pipes, kitchen, or other structures in disrepair during an inspection, this may lead to cancellation of insurance. This is if you are applying for a renewal.
A roof may be expected to last for about 30 years. But the older the roof, the more risk for your insurer. So if you have an older house with an older roof, this may also lead to the cancellation of your home insurance.
Your home insurance may be canceled after filing too many claims. This may give your insurer the impression that your house has too much risk and may result in a higher premium or cancellation.
Though insurance companies may not react to one bad year, living in a high-risk area may also lead to a termination of insurance. These high risks include natural disasters, tornadoes, flooding, and hurricane. For them, it all boils down to cost.
Normally, insurance covers the house structure and the contents of the house. Many companies may even cover pets. However, that depends on what state you are in. If you fail to inform your insurer about your pets, this may be a ground for cancellation.
Insurance provider usually gives you some time to pay your premium. If you are not paying it on time, you put your home insurance at risk of cancellation.
Home insurance companies perform credit background check upon application. If you have a bad credit record, there is a strong possibility of disapproval.
Rejection or cancellation of home insurance could mean inconvenience on your end, so try to avoid it!