With the increasing frequency of events like hurricanes, wildfires, floods and other natural disasters, it’s becoming more common for home insurance companies to opt not to renew home insurance policies or simply to drop policyholders altogether. Data shows that in areas with a high risk of severe weather, like California, more than 200,000 policies were nonrenewed in 2020 according to the California Department of Insurance. Being dropped can also happen if you’ve filed multiple insurance claims in recent years.
Losing your home insurance can be stressful and puts you at risk of financial loss should anything happen to the home. In addition, mortgage companies often require that you have home insurance. If you’re dealing with canceled insurance, Bankrate’s insurance editorial team helps you explore your options.
Reasons a home insurance company will cancel or not renew your policy
There are many different reasons why a home insurance company may choose to cancel or nonrenew a policy. Some of the most common causes include:
- Non-payment: Your insurance policy is a legal contract between you and your insurer. In exchange for a premium, your insurer agrees to compensate you for covered losses. If you stop paying your premium, your insurance company will eventually cancel your home insurance policy for non-payment.
- Frequent claims: Can an insurance company drop you after a claim? In some cases, yes. Filing home insurance claims often could cause your home insurance premium to increase and if you’ve filed multiple claims within the past few years, it’s possible that your home insurance company might cancel your policy altogether. Homeowners with a lengthy claim record are generally viewed as riskier to insure.
- Insurance fraud: Insurance fraud is illegal, and it has serious consequences. So, if you intentionally set your house on fire and try to collect an insurance payment, your insurance policy will most likely get canceled, along with other potential fallout.
- Underwriting issues: Certain underwriting issues can also lead to dropped insurance. For instance, if an adjuster visits your home after a claim and notices that your home does not meet the insurer’s underwriting guidelines, it’s possible that your policy will get canceled.
- Nonrenewal: In some cases, insurance carriers decide not to renew a homeowners insurance policy. This can happen if you live in an area that’s been designated as too high risk or you no longer fit the company’s underwriting profile. It can also occur if your home is not well maintained or as a result of your claims history.
In addition to the reasons listed above, it’s also common for home insurance companies to refuse a renewal if they are withdrawing business from your area. In such cases, you will have until the end of the policy period to find new coverage.
What should you do if your homeowners coverage is dropped
It can be stressful to find out that your home insurance policy is getting canceled, but there are a few things you can do to address the situation.
The first step to take is to reach out to your insurance provider or your agent. Inquire about the reason for the cancellation and see if there is anything you can do to fix it. For example, if your policy is being canceled due to non-payment, see if you can set up a payment plan with your insurer and catch up on what you owe.
If you can’t amend the situation and your policy is scheduled to be canceled, here’s how to get homeowners insurance after being dropped:
- Shop for a new policy: Start shopping for a new home insurance policy as soon as possible. Get quotes from a few different insurers to find the most affordable policy for your situation.
- Reduce your risk: If your policy was canceled due to risk-related issues, see if you can address them. For instance, if your home is in a high-risk hurricane area, consider installing stormproof windows and hurricane shutters, or replace your current roof with a metal one.
- Look into a non-standard policy: Some homeowners have a harder time getting approved for coverage due to factors that are out of their control. In this case, you might want to consider non-standard policies, which often have more flexible eligibility requirements.
- Improve the condition of your home: In some cases, the policy may be dropped because of the conditions of your home. This could include the roof being in poor condition or perhaps other structural issues. In such cases, you may be able to address the issue that caused the policy to be canceled and get it reinstated. If you’re unable to reinstate your policy, the improved conditions of your home should help reduce your chance of being denied by a new insurer.
Home insurance cancellation laws by state
In many states, insurance companies must provide some type of notice prior to moving forward with a policy cancellation. However, every state has unique laws around home insurance cancellation and nonrenewal. For example, in California, insurance companies are required to give policyholders a notice of cancellation at least 45 days before the policy’s termination date.
If you have questions about the home insurance cancelation laws in your state, you can notify your state’s department of insurance using the contact information below:
State Department of Insurance Contact Information Alabama Department of Insurance
201 Monroe Street, Suite 1700, PO Box 303351
Montgomery, AL 36104
Phone: (334) 269-3550
Fax: (334) 241-4192
http://www.aldoi.orgAlaska Department of Community and Economic Development
3601 C Street, Suite 1324
Anchorage, AK 99503
Phone: (907) 269-7900
Fax: (907) 269-7910
http://www.dced.state.ak.us/insuranceAlaska Department of Community and Economic Development
P.O. Box 110805
Juneau, AK 99811
Phone: (907) 465-2515
Fax: (907) 465-3422
http://www.commerce.state.ak.usArizona Arizona Department of Insurance
2910 N. 44th Street, Ste. 210 (2nd Floor)
Phoenix, AZ 85018-7269
Phone: (602) 364-3100
Fax: (602) 954-7008
http://www.azinsurance.gov/Arkansas Department of Insurance
1200 West 3rd Street
Little Rock, AR 72201
Phone: (501) 371-2640
Fax: (501) 371-2749
http://www.state.ar.us/insuranceCalifornia Department of Insurance
300 Capitol Mall, Suite 1500
Sacramento, CA 95814
Phone: (916) 492-3500
Fax: (415) 538-4010
http://www.insurance.ca.govColorado Division of Insurance
1560 Broadway, Suite 850
Denver, CO 80202
Phone: (303) 894-7499, ext. 4311
Fax: (303) 894-7455
http://www.dora.state.co.us/InsuranceConnecticut Department of Insurance
P.O. Box 816
Hartford, CT 06142
Phone: (860) 297-3984
http://www.state.ct.us/cidDelaware Department of Insurance
841 Silver Lake Blvd., Rodney Building
Dover, DE 19904
Phone: (302) 739-4251
Fax: (302) 739-5280
http://www.state.de.us/inscomWashington D.C. Department of Insurance, Securities and Banking
810 First Street, NE, Suite 701
Washington, DC 20002
Phone: (202) 727-8000
Fax: (202) 535-1196
http://disb.dc.gov/Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, FL 32399
Phone: (850) 413-3140
http://www.floir.com/Georgia Insurance and Fire Safety
Two Martin Luther King, Jr. Drive
Atlanta, GA 30334
Phone: (404) 656-2070
Fax: (404) 651-8719
http://www.inscomm.state.ga.usHawaii Department of Commerce and Consumer Affairs,
Insurance Division
King Kalakaua Building: 335 Merchant Street
P.O. Box 3614
Honolulu, HI 96813
Phone: (808) 586-2790
Fax: (808) 586-2806
http://hawaii.gov/dcca/insIdaho Idaho Department of Insurance
700 West State Street, P.O. Box 83720
Boise, ID 83720-0043
Phone: (208) 334-4250
Fax: (208) 334-4398
http://www.doi.idaho.govIllinois Illinois Department of Insurance
320 West Washington Street
Springfield, IL 62767
Phone: (217) 782-4515
http://insurance.illinois.gov/Indiana Department of Insurance
311 W. Washington St., Ste 300
Indianapolis, IN 46204
Phone: (317) 232-2385
Fax: (317) 232-5251
http://www.state.in.us/idoi/Iowa Division of Insurance
330 Maple Street
Des Moines, IA 50319
Phone: (515) 281-5705
Fax: (515) 281-3059
http://www.state.ia.us/government/com/ins/ins.htmKansas Insurance Division
420 SW 9th Street
Topeka, KS 66612
Phone: (785) 296-7801
Fax: (785) 296-2283
http://www.ink.org/public/kidKentucky Kentucky Department of Insurance
215 West Main Street
Frankfort, KY 40601
Phone: (502) 564-3630
Fax: (502) 564-1650
http://insurance.ky.gov/Louisiana Department of Insurance
950 North Fifth Street
Baton Rouge, LA 70804
Phone: (225) 343-4834
Fax: (254) 342-5900
http://www.ldi.state.la.usMaine Bureau of Insurance
34 State House Station
Augusta, ME 04333
Phone: (207) 624-8475
Fax: (207) 624-8599
http://www.maineinsurancereg.orgMaryland Maryland Insurance Administration
200 St. Paul Place, Suite 2700
Baltimore, MD 21202
Phone: (410) 468-2000
Fax: (410) 468-2020
http://www.mdinsurance.state.md.usMassachusetts Division of Insurance
South Station, 5th Floor
Boston, MA 02110
Phone: (617) 521-7794
Fax: (617) 521-7772
http://www.state.ma.us/doiMichigan Michigan Department of Insurance and Financial Services
611 West Ottawa Street, 3rd Floor
P.O. Box 30220
Lansing, MI 48909-7720
Phone: (517) 373-0220
Fax: (517) 335-4978
http://www.michigan.gov/difsMinnesota Department of Commerce
133 East 7th Street
St. Paul, MN 55101
Phone: (651) 296-2488
Fax: (651) 296-4328
http://www.commerce.state.mn.usMississippi Department of Insurance
P.O. Box 79
Jackson, MS 39205
Phone: (601) 359-3569
Fax: (601) 359-2474
http://www.doi.state.ms.usMissouri Missouri Department of Insurance
301 West High Street, Room 630
PO Box 690
Jefferson City, MO 65102
Phone: 573-751-4126
Fax: (573) 751-1165
http://insurance.mo.gov/Montana Montana Insurance Department
840 Helena Avenue
P.O. Box 4009
Helena, MT 59601
Phone: (406) 444-2040
Fax (406) 444-2701
http://www.csi.mt.gov/industry/insurance.aspNebraska Nebraska Department of Insurance
941 O St.
PO Box 82089
Lincoln, NE 68501-2089
Phone: (402) 471-2201
Fax: (402) 471-4610
http://www.doi.nebraska.gov/Nevada Division of Insurance
1665 Hot Springs Road, #152
Carson City, NV 89706
Phone: (775) 687-7690
Fax: (775) 687-3937
http://www.doi.state.nv.usNew Hampshire Department of Insurance
56 Old Suncook Road
Concord, NH 03301
Phone: (603) 271-2261
Fax: (603) 271-1406
http://www.state.nh.us/insuranceNew Jersey New Jersey Department of Banking and Insurance
20 West State Street
PO Box 325
Trenton, NJ 08625
Phone: (609) 292-7272
Fax: (609) 777-0508
http://www.state.nj.us/dobiNew Mexico Department of Insurance
P.O. Box 1269
Santa Fe, NM 87504
Phone: (505) 827-4601
Fax: (505) 827-4734
http://www.nmprc.state.nm.usNew York New York State Department of Financial Services
25 Beaver Street
New York, NY 10004
Attn: Insurance Department
Phone: (212) 480-6400
http://www.dfs.ny.gov/insurance/dfs_insurance.htmNorth Carolina North Carolina Department of Insurance
Dobbs Building: 430 N. Salisbury Street
Raleigh, NC 27603-5926
Phone: (919) 807-6750
Fax: (919) 733-6495
http://www.ncdoi.comNorth Dakota North Dakota Insurance Department
600 East Blvd. Avenue, 5th Floor
Bismarck, ND 58505
Phone: (701) 328-2440
Fax: (701) 328-4880
http://www.nd.gov/ndins/Ohio Department of Insurance
2100 Stella Court
Columbus, OH 43215
Phone: (614) 644-3378
Fax: (614) 752-0740
http://www.state.oh.us/Oklahoma Insurance Department
3814 North Santa Fe
Oklahoma City, OK 73118
Phone: (405) 521-2828
Fax: (405) 521-6652
http://www.oid.state.ok.usOregon Insurance Division
350 Winter Street, NE, Room 440-2
Salem, OR 97310
Phone: (503) 947-7984
Fax: (503) 378-4351
http://www.cbs.state.or.us/insPennsylvania Insurance Department
1321 Strawberry Square, 13th Floor
Harrisburg, PA 17120
Phone: (717) 787-2317
http://www.insurance.state.pa.usRhode Island Insurance Division
233 Richmond Street, Suite 233
Providence, RI 02903
Phone: (401) 222-2223
Fax: (401) 222-5475
http://www.dbr.state.ri.us/divisions/insurance/South Carolina South Carolina Department of Insurance
1201 Main St., Suite 1000
Columbia, SC 29201
Phone: (803) 737-6160
Fax: (803) 737-6205
http://doi.sc.gov/South Dakota South Dakota Division of Insurance
445 East Capitol Avenue
Pierre, SD 57501
Phone: (605) 773-3563
Fax: (605) 773-5369
http://dlr.sd.gov/insurance/Tennessee Department of Commerce and Insurance
500 James Robertson Parkway, 5th Floor
Nashville, TN 37243
Phone: (615) 741-2241
Fax: (615) 532-6934
http://www.state.tn.us/commerceTexas Department of Insurance
333 Guadalupe Street
Austin, TX 78701
Phone: (512) 463-6169
Fax: (512) 475-2005
http://www.tdi.state.tx.usUtah Department of Insurance
State Office Building Rm 3110
Salt Lake City, UT 84114
Phone: (801) 538-3805
Fax: (801) 538-3829
http://www.insurance.state.ut.usVermont Department of Financial Regulation
Insurance Division
89 Main Street, Drawer 20
Montpelier, VT 05620
Phone: (802) 828-3301
Fax: (802) 828-1446
http://www.dfr.vermont.gov/insurance/insurance-divisionVirginia Bureau of Insurance
P.O. Box 1157
Richmond, VT 23218
Phone: (804) 371-9967
http://www.state.va.us/sccWashington Office of the Commissioner of Insurance
14th Avenue and Water Street
Olympia, WA 98504
Phone: (360) 753-3613
Fax: (360) 586-3535
http://www.insurance.wa.govWest Virginia West Virginia Offices of the Insurance Commissioner’s Insurance Education Center
1124 Smith St.
Charleston, WV 25301
Phone: (304) 558-3386
http://www.wvinsurance.gov/Wisconsin Office of the Commissioner of Insurance
125 South Webster Street
P. O. Box 7873
Madison, WI 53703-3474
Phone: (608) 266-3585
Fax: (608) 266-9935
http://oci.wi.gov/Wyoming Department of Insurance
122 West 25th Street, 3rd Floor East
Cheyenne, WY 82002
Phone: (307) 777-7401
Fax: (307) 777-5895
http://insurance.state.wy.us/
What is a FAIR plan?
If you’re struggling to get approved for a traditional home insurance policy, you might consider a Fair Access to Insurance Requirements (FAIR) plan.
FAIR plans are an option of last resort for homeowners who have exhausted other options in the standard home insurance market. These plans make it possible for some homeowners to get coverage if they have been repeatedly denied.
FAIR plans are state-managed programs, which are jointly funded by taxpayers and private insurance providers. Unlike a standard home insurance policy, where you receive coverage from one company, FAIR plans are shared market plans, where you’re insured by several companies.
With home insurance through a FAIR plan, multiple insurance companies are providing your coverage. In that regard, it limits the risk that a single insurance company has to take on. If you have a claim, the companies that insure you each pay for some of the loss.
The type and amount of coverage you can get from a FAIR plan depends on your state. However, these policies typically offer less protection than regular home insurance policies and are often more expensive.
According to the Insurance Information Institute (Triple-I), all FAIR plans include coverage for fires, vandalism, riots and windstorms. Some FAIR plans include personal liability insurance, but it depends on the state.
As of 2022, more than 30 states and Washington, D.C. offer FAIR plans to qualifying homeowners.
When should I look into getting a FAIR plan?
Once you receive notice that your homeowners insurance company dropped you, you should start shopping for new policies.. If you get denied by two or more home insurance companies, it’s probably a good idea to look into a FAIR plan. Most states require proof of denied coverage by at least two insurers before you can apply for a FAIR plan.
If your home insurance policy gets canceled, it’s important to act quickly, whether you get another standard home insurance policy or a FAIR plan. Once your policy expires, you will have no home insurance coverage.
If you let your policy lapse, it could be more difficult to get another home insurance policy in the future, and the rates could be more expensive. Additionally, if anything happens to your home or property during the lapse, you will be responsible for the damages out of pocket. You can avoid a lapse in coverage by purchasing a new home insurance policy that starts a day or two before your old policy terminates.
The bottom line
Most homeowners are able to qualify for a standard home insurance policy, but others might struggle to get coverage. If your home insurance policy gets canceled, or if you get denied coverage, there are a few things you can do.
First, figure out why the policy was canceled and see if there’s anything you can do about it. If not, start applying for new policies as soon as possible. If you’re getting turned down by multiple insurance companies, find out if your state has a FAIR plan, which usually has more flexible underwriting requirements.
Frequently asked questions
Depending on where you live and the circ*mstances surrounding the cancellation, it can be challenging to get home insurance after being dropped. In parts of the country impacted by severe weather events, such as Florida and California, it is becoming more difficult to obtain coverage. The first step is to shop around and find out what options may be available. If you are unable to find insurance, you may need to seek coverage through the state FAIR plan, which are state-managed programs available in 30 states and Washington, D.C.
While there isn’t necessarily a specific number of claims that causes insurance companies to drop a policyholder, companies may opt not renew policies based on one’s claim history. This could be due to the number of claims made, frequency of similar claims or the severity of claims made.
Insurance companies are typically required to provide some form of notice before cancellation or nonrenewal. This typically must take place 30 to 120 days prior to the policy ending, depending on the state’s particular laws.