It is a normal day for you. You open your e-mail or your mailbox and there it was… a message from your insurance company that says your insurance policy is being dropped. You begin to panic and ask yourself this question: How will I get homeowners insurance after being dropped?
This may not be a story that you have experienced before, but several others have been in this situation. Find out if you have any possible alternatives or solutions to this issue in this article.
Table of Contents
- 1 Common Reasons why Homeowners insurance is dropped
- 2 Can I still get Homeowners Insurance after being dropped?
Common Reasons why Homeowners insurance is dropped
If you found out that your insurance has been dropped, you need to know the reason behind this. On the other hand, if you plan on protecting your insurance coverage, here are some of the common reasons why a homeowners insurance policy is dropped. If you know the potential reason for a dropped coverage, you may be able to avoid it.
Too many claims
Insurance companies will classify you as a high-risk customer if you are known to file several claims in a short span of time. This is one reason that may make it hard for you to get other insurance coverage. However, you can still dispute this on the basis of your CLUE score. The Comprehensive Loss Underwriting Exchange database or CLUE contains all the data relating to your insurance policy.
If you find some error in your CLUE score, you can file a dispute and have it corrected. On the other hand, if the data on the CLUE database is correct, you can find ways to fix the problem. For example, if most of your claims are related to a faulty roof, it is best to repair the roof as a whole. This way, you may be able to get new insurance coverage.
Similar to the previous case, an insurance company may also deem an area risky if there are too many claims in that specific area. As a result, your insurance company may choose to cancel all policy offerings in the area. There are also instances when insurance companies decide to stop their business in an area. In this case, it is easier to find a replacement home insurer.
However, you don’t have to worry too much since your insurance company won’t just do the cancellation without warning. They would usually inform their clients ahead of time to give them ample time to prepare for the loss of their insurance policy.
Non-payment of premium
Insurance companies are operating a business and their profit comes from the payment of the insured clients. If a client misses a payment a number of times, this can lead to your insurance company dropping your insurance policy. It is important to always pay your monthly premiums costs on time to keep your insurance plan.
Dog ownership should be disclosed upon applying for an insurance policy. There are certain breeds that are considered to be more aggressive than others. There are insurance companies that don’t insure houses that are home to aggressive pets. Here are some of the dog breeds that are considered to be aggressive:
- Doberman Pinschers
- Great Danes
- Pit Bulls & Staffordshire Terriers
- German Shepherds
- Alaskan Malamutes
- Siberian Huskies
Non-disclosure of any necessary information
The non-disclosure of important information that affects one’s insurance policy can be considered as a fraudulent action. For example, if you have decided to install an outdoor pool without informing your insurance company, you may end up with a dropped insurance policy.
Can I still get Homeowners Insurance after being dropped?
Shop Around for Other Insurers
There are several insurance companies in your area and they would be glad to accommodate you even after your insurance company has decided to drop you. You can look around for the types of policies that cater to your needs.
If insurance companies find that insuring your home can be too risky, you may be able to seek help from your state to find a policy that suits your needs. On top of that, if your property is under a mortgage, your lender may provide a lending hand for your search. The insurance policy will work to protect you and the financial interest of the lender as well.
Make the Necessary Repairs
When the concern of your insurance company is regarding the structural integrity of your home, we recommend doing the necessary repairs to help you with your case. Most often, it is the roof that can cause the cancellation of the insurance policy. This is why it is important to always have new roofs installed when applying for insurance coverage. If you make the necessary repair to the property, it is easier for the insurance company to approve your policy.
File a Dispute
If you think that you are wrongly dropped by your insurance company, you may always file for a dispute. However, you should make sure that the evidence that will represent you is free from error. It is best to go over your CLUE score before filing for a dispute to help you prove your point.