Experiencing the ups and downs of non-renewal of your homeowner's insurance policy. Here’s how to handle it.
You pause momentarily when the word “non-renewal” floats off the page in that letter from your homeowner’s insurance carrier. Why is this happening? Did you file too many claims?
Our public adjusters at Liberty Insurance Adjusters weigh in on how to avoid non-renewal and what to do if it happens to your insurance policy.
What Is a Notice of Non-renewal?
Your homeowner's insurance company issues a notice of non-renewal to inform you that when your policy expires, it will not be renewed. The statement tells you the date it goes into effect and the reason for non-renewal.
In some circumstances, it may be possible to retain your policy with your current company if you meet specific conditions. Generally, a notice of non-renewal means that you will need a new homeowner’s insurance policy.
Insurer No Longer Offering Coverage
You may not have done anything wrong. Homeowner’s insurance policies often are not renewed because the insurance carrier is no longer offering that coverage. The company may have dropped that specific line of insurance or may not be offering policies in your region or state anymore.
Although it's a tad unsettling, it probably isn't a reason to panic. You may be able to pick up a new policy at a better rate.
Why Homeowner’s Insurance Policies are Nonrenewed
There are many reasons your insurer may not renew your policy. Be sure you understand why it took this action so you can proceed accordingly. If an insurance carrier is dropping you because of opening a claim or having multiple claims, call our experienced public adjusters. We will review your claims.
You Placed Too Many Claims
Another reason for non-renewal is that you may have filed too many insurance claims. The claims history is one of the most common reasons that homeowner’s insurance companies drop policies.
Even small claims filed within a particular window can result in non-renewal. Or you may have filed too many claims in a specific category, for instance, a roof, a fire, or water damage.
Your Risk Has Changed
Your policy also may not be renewed if your risk has changed significantly. For example, if your home is more likely to be damaged by a covered peril than when you got the policy, the insurer may drop your coverage.
It’s possible that a home inspection revealed unacceptable risks or that you have made changes to your home that violate the terms of your policy.
This type of non-renewal also often happens in regions like ours with high risks for hurricanes and storm surge.
Avoiding Insurance Non-renewal
Homeowner’s insurance policies are not home maintenance policies — it covers extensive losses.
Many insurance carriers have tightened their restrictions on the number of claims filed before they consider homeowners a high risk, which often results in a policy not being renewed.
Homeowner’s Insurance Tips
Look into these suggestions to save you money when shopping for a new policy.
Consider carrying a higher deductible. You'll pay less and help discourage you from filing small claims that will put you at risk for non-renewal.
Perform routine home maintenance. Doing so can help prevent damage from water and other typical disasters, and it could save you future financial risks and headaches.
Learn your home’s claim history. If you are purchasing a home, find out what claims have been filed in recent years. Water loss claims may make the property a higher risk for insurance companies.
What to Do if Your Policy Isn't Renewed
If your homeowner’s insurance policy has not been renewed, you should receive a notice in the mail at least 60 days before the expiration of your policy. Contact your insurer to see if there is anything you can do to prevent non-renewal. If you get an offer to retain your policy, closely follow any instructions you are given.
If they do not retain your policy, don't delay looking for coverage with a new company.
To avoid getting another non-renewal:
Address anything that your insurer deems an unacceptable risk, including performing routine maintenance on your home.
Keep claims to a minimum.
Document what the property looked like when you bought the insurance so you have a record in case of claims.
Don't worry. You can get insurance again after a non-renewal, but it is essential to act fast to avoid paying for a lender-forced policy.
Avoid Non-renewal with Liberty Adjusters
Liberty Adjusters can help you avoid non-renewal by correctly placing claims for property damage when necessary. Our public adjusters will never encourage homeowners to claim damage that is not warranted or covered by insurance. This can help homeowners avoid non-renewal due to excessive claims.
At Liberty Adjusters, we can help you place a claim and work on your behalf to get the settlement that you deserve. If you need help filing a claim or want to understand what your policy covers, call our public adjusters at Liberty Adjusters, (813) 922-5129. It’s time to lean on Liberty.