Reasons Your Homeowners Insurance May Get Canceled

For various reasons, home insurance providers may view you as a high-risk customer. Here are seven reasons why an insurance company might decide to cancel your policy:

A Poor Examination

If the insurance company's underwriter inspects your property and discovers an unacceptable risk, they may terminate your existing policy when it comes up for renewal. Fire dangers, leaky plumbing, kitchens in disrepair, and other issues could lead to a postponement. Only if you take care of these problems and make the necessary repairs will your insurer consider resuming your insurance.

There Are Problems With the Roof

A home insurance cancellation may be an option if you have an older house with an older roof. If your roof is more than 20 years old, some insurance companies will need an examination, while others will refuse to insure your home if it has an older roof.

Typically, a roof has a 30-year lifespan. However, the older your roof is, the more risk your insurance company must deal with. Insurers might cancel your policy and need a new roof to reinstate it if your roof fails a renewal inspection.

Numerous Claims Are Being Made

If you file too many insurance claims, your home insurance policy may be terminated. It is possible that multiple claims could lead to an increase in premiums or the cancellation of your policy. If you combine your house and automobile insurance policies, your auto coverage may be affected.

Living in a Location With a High Rate of Crime

An insurer may choose to exclude coastal areas from its coverage because of the high risk of natural disaster claims. Areas prone to tornadoes, flooding, and storms are included in this category.

It all comes down to costs for insurance. If an area has a history of claims or a homeowner files many claims, an insurance company may consider the property an unacceptable risk and either raise the price or cancel your policy entirely.

For some homeowners in Florida, this is happening right now. According to the Miami Herald, more than 53,000 policies have been canceled by three insurance companies. According to the research, this is partly attributable to an increase in hurricane-related claims and fraud.

Pets

The contents of your home, as well as your pets, may be covered by your homeowner's insurance policy. However, insurance companies often have a list of dogs they would not insure, depending on state legislation. Boa constrictors and some dog breeds are examples of exotic pets that might fall into this category.

The insurance provider might cancel your policy if they weren't made aware of your exotic pet's existence when it was provided coverage if it bites or damages your neighbor's property. Full disclosure is essential, and withholding information from your insurance provider could give them a legitimate excuse to terminate your policy.

Not Paying on Your Insurance Payments

If you fail to pay your house insurance premiums, you may be in danger of having your policy canceled if you also pose a significant risk to your insurance provider, such as:

• You should get a new roof.
• Multiple insurance claims have been filed on your behalf.

If you fall behind on your insurance payments, your provider may grant you a 30-day grace period to make up the difference (though this varies by state). Any claims you make during this grace period are likely to be paid if they are in line with the terms of your policy, provided you pay your entire premium during this period.

Bad Credit

Most insurance companies now require a credit check before giving coverage. While this alone may not exclude you from receiving coverage, it can have an impact on the cost of your premiums.