Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
Yes an insurance company can non-renew your homeowners insurance policy for several reasons.
Main reasons are change in risk. This could be due to claims or hazards on your home that have increased and as a homeowner you fail to mitigate. In other words if the insurance carrier can no longer tolerate you as a risk the insurance carrier can chose non renew. Keep in mind all polices are self terminating at the end of a term and the insurance company can chose at that time to either offer a renewal or chose to not renew. This is not an actual cancellation. Cancellations are actually much more difficult. The only way a cancellation occurs is if you the insured fail to make a payment or often on a newly written policy a hazard was not dealt with or there was mis-representation on the application. These types of cancellations however fall on the insured and not the insurance provider.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A homeowner’s policy can be cancelled if the home is not as represented in the application. A recent client indicated that they didn’t have any pets. When a company representative visited the home they were introduced to the family’s favorite pit bull. This resulted in a cancellation letter. There are other similar situations. Of course, the policy can always be cancelled for not paying the premium. In fact most companies have very little tolerance for late payments on any property policy.
That is a great question! There are always reasons that a company would choose to not do business with you, and every one of them are preventable by you. The big three? When you filled out your application you were less than truthful. What might seem to you to be a harmless white lie is still fraud to a business that values honesty, and promises to pay you their money based on your representation of that honesty. The second is when you change the terms of the contract without telling them. You add a pool, trampoline, or certain breed of dog, yet fail to tell the company, so they have an opportunity to protect themselves from the increased risk you just put them under. The last is your failure to make timely agreed upon payments. If you were the company, I'm sure you'd see it the same way, especially if it was your money at risk. I hope that helps. Thanks for asking!
Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
A car insurance company can drop your homeowner's insurance. It happens every day. For example, if your driving record was clean and you had no claims for 20 years, but you had three recent fire, vandalism or theft claims on your home insurance, there's a good chance you will be cancelled.
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Main reasons are change in risk. This could be due to claims or hazards on your home that have increased and as a homeowner you fail to mitigate. In other words if the insurance carrier can no longer tolerate you as a risk the insurance carrier can chose non renew. Keep in mind all polices are self terminating at the end of a term and the insurance company can chose at that time to either offer a renewal or chose to not renew. This is not an actual cancellation. Cancellations are actually much more difficult. The only way a cancellation occurs is if you the insured fail to make a payment or often on a newly written policy a hazard was not dealt with or there was mis-representation on the application. These types of cancellations however fall on the insured and not the insurance provider.