Losing your home insurance coverage is a scary thought. When you lose coverage, you become vulnerable to devastating loss, both to your home and your finances. And sometimes, this is beyond your control. However, nonrenewal or cancellation does not mean you are in danger – there is always something you can do to stay protected.
Why Would My Home Insurance Be Canceled?
The first reason that may come to mind is skipping payments. Missing payments leads to lapsing, and your insurance will cancel your coverage for not paying premiums.
Despite nonpayment being the first to come to mind, it’s actually not the most common cause for cancellation – home inspections are. Your insurer may choose to cancel because your home is in poor condition or has structural issues that make it a high insurability risk.
The insurance company may cancel due to ceasing operations where you live, or they may cancel due to several other insurance claims in your area.
You can lose coverage from nonrenewal, which the company may do because of your history of claims, your underwriting profile, or housing condition. Your insurance may be canceled because of fabricating or omitting details during the underwriting process.
What Can I Do?
These situations have their own courses of action to take. But in any case, your insurer will send you a written notice within 30 days before your coverage ends.
If you missed premiums, you could recover your policy by paying overdue costs as soon as possible. But this may also be a matter of contacting your mortgage lender because some individuals pay for home insurance as part of mortgage costs. In this case, your mortgage lender can fix this payment error.
For cancellation due to home inspection, you can repair problematic areas of your home and then contact your insurer. This alone may help you get your policy back.
If you get a nonrenewal notice, you need to contact your insurer to find out why your policy won’t be renewed. They don’t always provide the cause in the notice. Finding out can help you devise a plan.
If your insurance company stops providing services in your area, you may want to use this as an opportunity to find coverage from another company. It’s also a good idea to look for other coverage if your attempts to recover your policy are unsuccessful.
Suppose your plan gets canceled, and you don’t get coverage elsewhere. In that case, your mortgage lender may purchase the insurance for you but do so with the expectation that you’ll pay for it. One downside is that it won’t cover your personal property anymore.
Get Coverage That Will Stay With You
At Remco Insurance Services, we want to give you a policy that will never go out from under you. With our help, you can secure an affordable policy and never have to worry about suffering financial losses from damage to your home. Call us today at (215) 357-7878, or text us at (267) 692-8296.