Having homeowners insurance is often a requirement for any home or property owner. Being without it can be scary and often could result in your mortgage lender taking action against you as they see you as a possible liability. So, what happens when your insurance company cancels your policy, leaving you without coverage on your home?
Finding protection quickly is the smartest option as you don’t want to risk being uninsured when disaster strikes. If a storm severs branches onto your home, or a fire breaks out in your kitchen, or a guest falls and breaks a bone, being without insurance can be costly. If your insurance company cancels your policy, you will want to find a replacement policy as soon as you’re able.
Finding a new policy can be difficult as insurance companies will see that your previous lender canceled your policy. This may label you as a risk and you will face some hefty premiums from anyone willing to offer you a policy. Finding new home insurance starts with speaking with your insurance company. Whether you’re calling to attempt to reinstate your previous policy or to find out why they canceled your plan, speak with an agent to know more about what you can do next.
Contact your insurance company
Most regional insurance companies will work with their clients to find the best path to get their policy reinstated. Smaller firms may be willing to offer you another policy or reinstate your old one, possibly for a higher rate. By contacting your insurance company, you could be able to reinstate your previous policy, but they may require changes. Knowing why your policy was canceled will allow you to fix what issues they have found and showcase yourself as a more trustworthy client.
Policies are canceled for a number of reasons. Too many claims, missed payments, worsening credit score, etc. By contacting your insurance company, you may find out what the reasons were for your situation and oftentimes you’ll be able to address these issues. Some insurance companies will reinstate your policy if you fix the issues they give you. This could be adding more security systems, taking a rowdy pet to a training class, or working on your credit. By addressing their issues, you show them that you can do what they need to be less of a financial risk in their eyes.
Larger insurance companies that operate on a nation-wide scale might not allow you to reinstate your insurance policy. If you contact your agent, and they won’t reinstate your policy, at least you will know what to address to make yourself more applicable to different insurance companies.
Find a new insurer
If your insurance company won’t offer you a new policy or reinstate your old policy, your best option is to search for a new insurer. This can be difficult as insurance companies will know your previous policy, but finding a new plan is not impossible. Insurance companies may offer you decent coverage for a higher rate, but over time you can find discounts to help ease the cost of premiums.
It can be tempting to go for the first insurance company that offers you a policy but don’t forget to compare rates with other companies to find your best option. Simply because your previous policy was canceled does not mean no one will want you as a client. If you can address the issues that led to the cancellation, insurance companies may see you as less of a liability and will offer you policies to protect your home.
Compare homeowners insurance policies and find the best one that protects you and your property.
Address any issues
As mentioned previously, knowing what issues led to your cancellation will allow you to fix them. If an insurance company sees you as a possible risk for making claims, they may cancel your policy. Limit your claims to issues that need to be fixed rather than something you could fix by yourself. Install security systems and CO2 monitors to make your home safe and lessen the possibility of claims. Anything you can do to lower your chance of being a liability to the insurance company will go a long way in reinstating your insurance policy.