What You Can Do If Your Home Insurance Company Cancels Your Policy?
When you own a home, you will have a lot of responsibilities, and one of these is to keep homeowner's insurance on your home. If you just received a letter or call from your homeowner's insurance company telling you that they are canceling your policy, you will need to act fast to get a new policy in place before your current one ends, and here are several things you should know if you are in this situation.
The reasons this happens
The first thing you should understand is why your homeowner's insurance company is canceling your policy, and it could be for a number of reasons. The main reason an insurance company would make the decision to cancel your policy is if they view you as too high of a risk. A person that is considered a high-risk might be a person who has filed multiple claims over the years on their homeowner's insurance policy. A high-risk person might also be a person who filed just one major claim in recent times.
An insurance company might also cancel you if the risks in your area are simply too high. If, for example, dozens of people in your neighborhood filed a claim for storm damage, they might drop you with the assumption that you will be the next person to file a claim. If an insurance company has reason to believe that you are not keeping up with maintenance on your home, they could also make the decision to drop you.
Your options when this happens
Finding new homeowner's insurance after being canceled might be hard to do, as other insurance companies might also view you as a high-risk homeowner. If this is the case, you might have trouble finding a company that is willing to offer you an insurance policy. You can call around, though, to ask a variety of different companies for quotes, as this will help you find a company that will insure you. You should expect to pay a higher rate for your coverage, though.
Steps you should take in the future to avoid this problem
Once you get a new policy, you should make sure you properly maintain your home, as this can help you prevent problems that could lead to claims on your policy, and you should use caution when filing a claim by only filing one if you really need to.
If you have any questions about your home insurance policy, or if you currently need coverage, talk to an agent of your choice today to learn more.
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