Canceled! What to Do If an Insurance Company Cancels Your Policy

Having insurance on your home or property is a necessity. Then, one day, you are blindsided by a notice in the mail saying your insurance policy is going to be canceled. Instead of starting to panic, don’t worry and follow these three steps below. Here’s what you need to do if an insurance company cancels your policy.

1. Stay calm.

Although you might enter full panic mode at the mere idea of not having home insurance, take a deep breath and calm down. In most states, your insurance company must notify you 45 days before they plan to cancel your policy. This gives you plenty of time to assess your situation, weigh your options, and move forward – all while still covered under your policy.

2. Find out why your policy was canceled.

If your letter didn’t inform you why your policy was canceled, you need to call your insurance company to find out. Make sure you are completely calm when you call. The last thing you want to do is yell at some customer service rep who really has nothing to do with your cancelation but could be incredibly helpful with your reinstatement.

Be aware – there are several reasons your policy could be canceled. Some of these factors are within your control, while others are not. The most common reasons for cancelation are: a failed inspection, roof damage, failure of payment, multiple claims, living in a high-risk area, exotic pets, a change in company policy, and bad credit.

3. Based on the reason for cancelation, decide what you should do.

When you know the cause for your policy’s cancelation, you can decide what to do. If your policy was canceled because of a failed inspection or roof damage, you can make the necessary repairs to get your building to a more acceptable level. This can be all your insurance company needs in order to reinstate your insurance. Plus, depending on the cause of the damage, your roof repair might actually be covered under your insurance policy!

If your policy was canceled because of non-payment, often paying the balance due can be all that’s needed to have your policy reinstated. Of course, this is completely your insurance company’s discretion. Even if you pay the amount of money you owe, they might still believe you are a risk as a policyholder. This is why it’s important to pay your insurance when it’s due.

For those whose policies were canceled for another reason like multiple claims, living in a high-risk area, exotic pets, a change in company policy, or bad credit, it’s time to start shopping for a new insurance policy. Specifically, anyone who lives in a high-risk area (such as the coast or a flood plain), owns an exotic pet, or has a home business will want to be certain their new insurance policy meets their needs.

Start by checking out your insurance company’s competitors. If you can’t find an appropriate replacement policy or if your local insurers won’t cover you because of your situation, look into local assigned risk insurance carriers. Then, if you still can’t find coverage, call your state’s department of insurance.

Has Your Insurance Been Canceled?

If your insurance has been canceled, Barnard Law Offices can help. We specialize in handling property insurance issues. Give us a call today at (305) 665-0000 or contact us online to learn how we can help you get insurance coverage for your home or property.

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Barnard Law Offices

The Barnard Law Offices, L.P. has been protecting the rights of Floridians for four generations. Together our attorneys bring years of insurance claim advocacy and trial experience to the table. We don’t believe in half-hearted measures when it comes to proving your claim: after inspecting the damage to your property, our office will engage or connect you with high-quality third-party professionals to assist you with your claim and assess your property damage. Our talented team is dedicated to serving each client’s needs with a passion and commitment that makes us stand out among our peers.
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