What to Do When Your Homeowner’s Insurance Policy Is Non-Renewed

There are several reasons why a homeowner’s policy can be canceled or non-renewed.

Homeowners’ insurance is in crisis nationwide. Ten to 12 percent premium increases are common. Some insurers are leaving high-risk states. But along with the exodus and high prices come cancellations.

There are several reasons why a homeowner’s policy can be canceled or non-renewed. From bankruptcy to high risk, insurers have the right to cancel or non-renewal your policy. But why do they, and what are your options if it happens to you?

Reasons Homeowner Policies Are Canceled

There’s a difference between a non-renewal and a cancellation. A cancellation happens during the policy term, while a non-renewal happens at the end of the policy. In most circumstances, an insurer can cancel a policy that’s been in effect for less than 60 days without reason. However, this number and reason may change depending on each state’s laws.