Home insurance is an essential tool designed to protect your home. The policies in any home insurance plan are designed to cover you in case of a fire, theft, or accident. Making it a necessity that every homeowner must focus on.
Unfortunately, with most areas being impacted by weather conditions – we have seen a downfall in the renewal of home insurance. Moreover, lapses in payment or misrepresentation can even cause your homeowner’s insurance to fall through the cracks.
Type of Terminations
The first thing you need to understand is the type of terminations or reasons why your insurance was declined. Fortunately, most causes are caused by a simple fix that can resume your coverage in no time. However, there is a possibility you may need new insurance. To help you understand the issue we have listed down a few types of terminations:
- Cancellation: The most common reason for cancelation is due to a breach of contract. Misrepresentation is when you omit information or misrepresent yourself. For instance, if you state your roof was replaced 4 years ago, but inspection shows it is at least 15 years old. Similar impacts breach the contract and lead to cancelation.
- Lapses: Gaps in your payment or non-payment are a quick and easy ground for cancellation. Additionally, the claims you file during your lapses will not be covered, and if there are too many lapses in your payment your homeowner’s insurance will automatically be canceled.
- Non-Renewal: Another common cause for cancellation is non-renewal. This is when you do not meet up with the insurance provider at the end of the term to sign a new insurance policy. Secondly, there are times when the insurance company refuses to renew your policy based on high-risk levels. This is when you have too many claims caused by natural or unnatural events. These include but are not limited to natural disasters, fires, theft, and others
How to Deal with Terminated Insurance?
Living without homeowners insurance can be terrifying and rattling, which is why you need to fix the issue before something happens. Depending on the reason, here are some options you can consider.
- Non-payment: You can reach out to the insurance company and pay all due payments and request reinstatement. Keep in mind that every insurance provider is different, and you may find one that offers a grace period. Secondly, if your insurance policy fell through due to an inspection issue you can fix the issue by disputing the cancellation.
- Home Condition: Find out if fixing the issues that caused the cancellation or non-renewal will help build your case. This can easily be done by getting in touch with the insurance provider and taking on an open conversation. Knowing what the issue is can help you become a viable candidate for homeowners insurance.
Shopping for New Homeowners Insurance
There are times when you are unable to renew or reinstate your insurance, in such a case we suggest you start looking for a new insurance provider right away. Rather than wasting time or putting it off, start searching online and narrow the choices down based on what they have to offer.
A good rule of thumb is to get in touch with a few insurance providers and have them give you a price quote. Based on that and the coverage offered you can easily choose an insurance that will work best for you in the years to come.