Have you been told that your current insurer will no longer provide home insurance? Many people find themselves facing this dilemma, so it is important to know your rights.
Dropped homeowners insurance, also known as nonrenewal or cancellation of coverage, can be a stressful situation. This can be a very stressful situation, but you don't have too. You can get your homeowners insurance in order by following these four simple steps.
Your rights as a policyholder
You have the right to receive a written notice at least 30 days before your policy is cancelled or non-renewed. You have time to find a new insurance company and avoid a gap of coverage.
If your home insurance company does not provide a written notice to you, you can make a complaint at the state insurance regulator. Your complaint will then be reviewed by the regulator, who will decide what further action to take.
Your insurance cancellation rights
Insurers can cancel a homeowners policy 60 days after the date of purchase if they fail to pay premiums. Insurers can cancel policies if they determine that the property of a customer poses an unacceptable risk. For example, if it is damaged by theft or fire.
You can cancel your policy if you change the state of your property. Insuring a house that has suffered damage from a fire is more expensive than insuring a vacant vacation home.
It's also a good idea to check your credit score before getting a homeowners policy. Low credit scores can make it difficult to obtain a mortgage and may also be viewed as a greater risk by insurance companies.
If you fail to pay your premiums for too long, then you can have your home insurance cancelled. A lapse is a period of time during which you do not make premium payments, and insurance companies often have grace periods when they allow a lapsed policyholder to catch up on missed premiums and then have it reinstated.
You may also be dropped from your home insurance policy if you've made several claims or if the risk level of your home has changed. It is possible for your home to be rated at a higher risk level if it has had a number of claims made against it or if its condition has deteriorated.
Your rights as a Policyholder
If you've dropped a previous policy, it may be difficult to obtain insurance again. This can be especially true if your credit score is low or if there are other issues. Talk to a financial advisor about finding the right coverage for your needs and budget.
If you don't have an agent, there are many online brokers that can help you compare rates and options. They typically specialize in multiple home insurance companies and will be able to give you a better sense of which ones are a good fit for your risk profile.