What To Do If Your Homeowners Is Non renewed

  • June 4, 2024
  • 3 min read

Understanding Non-Renewal of Homeowners Policies
So, non-renewal of your homeowners policy. What does that even mean? Well, non-renewal is different than canceled. Canceled is when, in the middle of an insurance policy term, it’s canceled for some reason, whether you cancel it as an insured or the insurance company can cancel it only under certain conditions. Non-renewal means that at the end of your policy term, the insurance company did not renew your policy for a new policy. It’s different than canceling because your old policy actually expired and you have to renew it. That’s why they call it an X date for expiration date.

Reasons for Non-Renewal
Now normally, a policy is renewed under the same terms, maybe the rate’s a little different. But if the insurance company decided that they don’t want to insure that type of risk anymore, maybe your state is not where they want to offer coverage anymore. Maybe your property is in an area they don’t want to have insurance coverage, or maybe they have too much risk in one geographic area they can pull out. So, if you get a non-renewal notice, normally you get it in advance of your X date. You have to scramble to get a new policy. Normally, your agent will have found out about this and they look in advance. But if not, you may have to shop around for insurance.

Market Conditions and Non-Renewal
Now, this day and age, depending on where you live, there’s a lot of companies that are non-renewing clients depending on their perceived risk. Maybe catastrophic risk, maybe the insurance company just has too many policies in the state and they don’t have the capitalization to cover more policies. Usually, they start out by not doing new policies, but if they still have too much on their books, they have to non-renew. It’s very important if this happens to you to start looking for coverage as early as possible because if your insurer has non-renewed you, it’s because there’s something going on in that market that makes it a hard market.

Action Steps After Non-Renewal
So, you might have to scramble around and shop. Don’t delay on doing that. In fact, we recommend contacting a few different agents or brokers to make sure you’re getting all the right information. Non-renewal is not, you know, a death sentence, but it also is something to be concerned about because it means there’s something going on in your insurance market.

Seeking Help and Specialty Coverage
If you’d like to talk more about what non-renewal means and what your options are, you can click the link below and arrange a consultation or ask questions. If you have a high net worth or private client type scenario, you may be looking at some specialty coverages, not just through a normal insurance company. For example, if you have more than maybe 200,000 in vehicles or more than a couple million in personal real estate or five million in some states, you may qualify for a private client type of coverage. And that’s something that a good private client agency can handle for you. So, if you have questions, reach us on our website riskcoverage.com.

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