Reasons An Insurance Company Would Not Renew Your Home Insurance Policy

Did you recently receive a letter in the mail from your insurance company informing you that they will not be renewing your homeowner's insurance policy? If this happens, you shouldn't worry about it too much. After all, you can get insurance coverage from another company, but it might bother you if you are not sure why this happened. Here are some of the reasons insurance companies have for not renewing a person's home insurance policy.

The company is no longer offering that insurance type

There are times when an insurance company might decide to focus on certain types of insurance products only. If this happens, they may decide to no longer offer home insurance. While this is rare, it can happen, and most insurance companies will tell you if they decide to do this so you have time to look for a different company to use.

You have made too many claims

It is also possible that the insurance company is not renewing your policy because you have made too many claims. The average person will make a claim on their home insurance once every 10 years. If you start making claims for every little thing that happens, your insurance company may decide to no longer offer coverage to you.

You have a poor payment history

Insurance companies prefer having customers that pay their bills on time. If you have consistently paid your bill late, the company might cancel you. It's very important to realize that insurance companies do not view lapses in coverage favorably. If you failed to pay your bill and this caused your policy to lapse, you might eventually run into problems. The insurance company might decide not to renew your policy, simply because you have failed to be a responsible customer.

Your policy was cancelled

It's also important to understand that there is a difference between an insurance company choosing not to renew your policy and them cancelling your policy. If the company decides not to renew it, they are legally required to give you notice of this so that you can find a different insurance company to use.

When they cancel your policy, it means they are ending it right now, and this is usually because the policyholder has failed to pay the bill. A company may also cancel a policy if the policyholder commits insurance fraud. If your policy is cancelled, you will not be given any notice or time to find new insurance. The cancellation will be immediate.

If your policy was not renewed or got cancelled, you should contact a different home insurance company, such as Martin Insurance Company, as soon as you can to get a new policy in place.