Understanding a Non-renewal of Homeowners Insurance in Florida, simply refers to, the cancellation of Home insurance. Insurance companies rarely cancel a homeowner's insurance policy before the expiration date. However, some companies hedge their bets by canceling and refusing renewal of home insurance policies. When the hurricane season is around corner, many insurance companies refuse to renew home insurance policies of customers to avoid financial losses.
Some State has laws that prohibit the insurance companies from this malpractice, and insurance companies cannot send a non-renewal notice to customers who pay the premiums on time. However, many States don't have any laws in this regard and insurers can refuse to renew the home insurance policies of existing customers without citing any reason.
Non- renewal of homeowners insurance is different from cancellation. Non-renewal generally means your insurance company will continue providing coverage until policy lapses. There are many reasons as to why your insurance company issues you a non-renewal notice.
First, it considers you as a high-risk customer and doesn't want to take the financial risk. This may be because your house is located in danger zones such as storm paths or flood plains. Secondly, if you made several claims in short period of time, then the insurance company would give a second thought before renewing your homeowner insurance.
There is no reason to panic if you have received, a non-renewal noticed from your homeowner's insurance company. There is competition amongst insurance companies and you can always approach other insurance companies for the coverage. Lets look at some tips which will help you from stopping the non-renewal of your home insurance policy altogether.
1. Be cautious when you file for smaller claims. It is advised that if the loss just exceeds your deductible by few hundred dollars such as $200, do not file a claim and get the repairs done by yourself.
2. Always stay loyal to one insurance company. If possible, take multiple insurance policies (such as personal insurance, auto insurance and home insurance) from one insurance company. If you are long term customer, the insurance company will overlook small blemishes on your record.
3. Maintain your house well. Install adequate security systems and upgrade plumbing, electricity and other areas to ensure better safety.
If you are issued a non-renewal notice and cannot find another insurance company, you could opt for state insurance programs such as FAIR plans. The FAIR (Fair Access to Insurance Requirements) plan offers you insurance when you are unable to get insurance from the commercial market.