The insurer does not renew the home insurance policy. What to do?
Homeowner insurance policy renewal denials are becoming more common as insurers try to do less business with places that are known for frequent natural disasters. Frequent wildfires in western California are causing people to panic to find a good company that can provide them with insurance. Florida residents are constantly having trouble renewing their insurance during hurricane season.
As the weather is constantly changing and the climate is getting harder to predict - it's important that your home has good insurance - for your own peace of mind. Let's figure out what to do if your policy isn't renewed.
1. Your rights
The insurance company must notify you if they refuse to renew your policy. They must do this at least one month before your policy expires, as long as you pay your premiums on time. However, your best bet is to check with your insurance company. For example, in Florida, many homeowners may receive 90-120 days' notice before the insurance company refuses to renew their policy.
You may think you've been unfairly denied - then you can appeal the insurance company's decision. Most likely, you will be asked to prove that your home is not at increased risk, or that you have contributed in some way to reducing the risk. For example, you got rid of flammable materials near your home, or you fixed your roof.
2. Repairs to your home
If the inspection resulted in you being denied a policy renewal, there's something you need to do to save your insurance (even if your property is in a high-risk area).
The inspection will give you a chance to keep your policy if you fix some problems in your home - like faulty electrical wiring, or cracks in the roof.
When you decide to do repairs, consider getting more reliable and better quality material. New materials handle the weather better, and you'll have a chance to seriously cut down on your insurance costs. A new concrete building made with quality, modern materials will definitely last better than an old one.
What's included in a home improvement:
- If you want to be fireproof, it's better to replace your walls with high fire resistance material (fiber cement siding, stucco).
- Tiles that are better at withstanding impact will help protect your roof.
- Windows with hurricane resistance are especially useful if your home is on the coast.
3. Other policy
You may have decided that your current insurer isn't the best option after all, and it's still best to find another company.
An insurance agent can help you research and choose an insurance company. Your real estate agent can also guide you in this, or ask the insurance department, the home builder, the previous owner, or any of your neighbors for advice, since they are in the same conditions as you.
4. The state's joint market policy
If you're still having trouble finding insurance, a state's joint market insurance (FAIR) policy may be a good solution. Many states can provide you with a FAIR policy if your home is in a high-risk area, but it will likely cost more than the usual policy from an insurance company. This is what's called a "last chance" policy.
FAIR in California
A California plan will give you the opportunity to insure your property against lightning, smoke, explosions and fires. You will have to pay for the extra coverage.
Of course, these policies don't cover all your needs. For example, property, living expenses and personal liability. If you want more extensive coverage, a "difference in conditions" policy will be necessary. It will supplement your FAIR policy and give you more peace of mind.
State Insurance in Florida
Insurance of last resort in the state of Florida is Citizens Property Insurance. Hurricanes continue to increase in the state, and this organization continues to have an increase in policy sales
Citizens gives about the same coverage as private insurers, but can also give you "wind-only" coverage in some areas. This kind of insurance can help cover hurricane-related damage. The policy is purchased through an independent agent.
5. Surplus lines insurance
If you are left with no other options, consider excess lines insurance. It is provided by specialized insurers who can provide you with insurance even in cases where other companies refuse to do so. Different states have their own such companies, so consult with your insurance agent if you realize that regular insurers are turning you down.
Was this article helpful?62 Posted by: 👨 James C. Mooney