What Is The Difference?

There is a big difference between your insurance policy being cancelled by your insurance carrier and not having it renewed. When you get your homeowner insurance quote, the insurance company will outline their cancellation and renewal policies in the literature you receive regarding your policy. Review these restrictions carefully to avoid unnecessary cancellations or renewal difficulties in the future. An insurance company can only cancel a policy that has been activated for more than sixty days when you fail to pay the premium, when you have misrepresented yourself or committed fraud on your policy application and for auto insurance when your driver’s license has been suspended or revoked.

You insurance company can choose not to renew your insurance policy after your policy has expired. There are many reasons why an insurance company would do this and each pertains to the individual case. Your insurance company, by law, has to notify you in advanced that they will not be renewing your policy. If you feel you have not received an appropriate reason for their decision not to renew your policy, then contact your carrier for more information. You may be surprised why they will not renew your policy and it could help prevent any future cancellations or difficulties obtaining insurance.

Some reasons an insurance company will not renew a policy have nothing to do with the insured. For example, the insurance carrier may choose to leave a certain reason and will no longer offer insurance in that area or stop offering a certain kind of policy. Other reasons may include having a major claim against your policy or having too many claims. The insurance company might decide you are too much of a liability to insure. This happened to many Gulf Coast residents after hurricane Katrina. Because of the large number of claims that were filed, insurance companies chose not to renew existing polices and many companies stopped offering insurance in the Gulf States all together.            

If your previous insurance carrier cancelled or did not renew your policy it does not mean that your search for a homeowner insurance quote will be hard. Many insurance companies will insure homeowners who have had a policy that was not renewed in the past. You do not need to disclose to them why it was not renewed. However, you may have trouble finding insurance if you have had a gap in insurance coverage. To avoid the difficulties associated with lapse in insurance coverage, be sure to address any issues with your current carrier before moving on to another one. Many experts have suggested that you obtain at least three or four free insurance quotes from the Internet!