What to do after a home insurance non-renewal

Your house catches on fire and you need to rebuild – homeowners insurance. Your backyard tree falls into your roof and now your home is a convertible – homeowners insurance. Homeowners insurance is the unsung hero of homeownership. You hope that you don’t need to use it, but when you need it? You’re glad to have it.

That’s what makes home insurance non-renewal so concerning.

Home insurance non-renewal means that your insurance policy will no longer cover you when your current policy ends. You will be covered for the full length of your policy but are ineligible to have the same coverage with the same carrier for the following term. This can happen for a number of reasons and it's not necessarily your fault.

Compare this to homeowners insurance cancellation where your policy is canceled in the middle of the term. When it comes to non-renewal vs. cancellation, cancellation is where you’re likely to have more control. Home insurance policy cancellation reasons include things like non-payment, fraud, or failure to comply with policy terms.

If you’re facing a non-renewal, your insurance carrier is required to give you notice. The notice period varies by state and carrier but is typically at least 30 days. During that home insurance policy non-renewal notice period, you’ll want to take steps to remedy the non-renewal if possible and start looking for a new insurance company if it’s not.

Common Reasons for Non-Renewal of Homeowners Insurance

So, if a non-renewal of homeowners insurance isn’t necessarily your fault, what are the possible causes?

• Property-related issues – Your insurance carrier likes to see a well-maintained home. It makes them feel safe, like you aren’t risking any claims. If your home requires repairs, or if you’ve fallen behind on maintenance, your insurance company is likely to see you as a higher risk. Other risk factors on your property? Pools, trampolines and even aggressive dog breeds. We would never recommend rehoming your furry friends but talk to your insurance company about modifications you can make to your features to make them less of a risk. Things like fencing around a pool can go a long way toward making insurance companies feel better about your property.
• Frequent or high-cost claims – Insurance carriers like to see consistency. They know better than anyone to expect the unexpected, but multiple claims in a short period of time can catch their attention – and not in a good way. If you’ve recently filed multiple claims, not one claim with multiple facets, you could be flagged as a high risk for your insurance company. Similarly, making major claims repeatedly, even over a long period of time, will be noticed. If you file a claim for water damage every year, your insurance company is going to anticipate that and will likely not renew your policy.
• Changes in risk profile – If the risk level of your home changes, you can expect to see that reflected in your homeowners insurance policy. This could be a result of your actions – moving into an area prone to natural disaster – or entirely out of your hands. One common change here is neighborhood crime rate increases. As your location’s crime rate goes up, the likelihood of damage from the criminal elements goes up too.
• Insurance company decisions – There's not much you can do about company policy. If your insurer is pulling out of your market or adjusting their underwriting guidelines, you could be facing non-renewal of your homeowners insurance. There may also be larger forces at play. Industry-wide changes can impact individual policyholders.

What to do if you receive a home insurance policy non-renewal notice

Stay calm. The homeowners insurance non-renewal process allows for appeals. There is a chance that you can save your policy, or at least become more attractive to other carriers while you shop around for a new insurance company. Follow our six steps to plot out your next move.

Step 1: Read the notice carefully

Review the reason provided for the insurance policy non-renewal notice and confirm its validity. Your insurance company will tell you why your policy is not being renewed. And, hey, mistakes happen. If they are not renewing your policy because your pool is unsecured, but your property doesn’t have a pool, that’s an easy fix.

Step 2: Contact your insurance company or broker

If their reason for non-renewal is not valid, contact them and let them know. If their reason is valid, contact them anyway. Ask for further clarification and whether there’s anything you can do to reverse the decision. VIU by HUB customers can always rely on the VIU by HUB Advisory Team to speak with insurance companies on their behalf in cases like this.

Step 3: Fix issues that led to non-renewal

Now that you know their reasoning and what you can do to potentially reverse their decision, take the steps to remedy their maintenance or safety concerns. Address them promptly and provide your insurance company with proof of repairs or mitigation efforts.

Step 4: File an insurance non-renewal appeal

Some states allow homeowners to appeal non-renewal decisions if they believe it’s unfair. Check the laws and regulations in your state to see if you’re able to appeal and what you should do to prepare yours. The VIU by HUB Advisory Team can help you determine if you can appeal and, if not, help you locate a new insurance policy that will work for you.

Step 5: Start shopping for a new homeowners insurance policy

Sometimes there’s no way to reverse the decision and you have to find a new insurance carrier. If you find yourself in that situation, you still have a few options.

• Shop around and compare options from different insurers.
• Consider state-sponsored insurance plans if you struggle to find private coverage.
• Talk to an insurance broker like VIU by HUB for expert guidance and instant access to 50+ insurance carriers.

Step 6: Understand your state’s homeowners insurance non-renewal laws

Research local regulations to determine if your insurer followed proper procedures. They’re human. It’s possible that a mistake was made, or a regulation was updated. It’s unlikely to find an error in your favor here, but it’s not impossible. Researching these rules will also help you to avoid missteps in the future.

How to prevent non-renewal of homeowners insurance in the future

As we’ve said, sometimes home insurance non-renewal is unavoidable and entirely out of your hands. And sometimes, well, sometimes there are things you can do to prevent it. To avoid those preventable non-renewals, try these tactics.

• Maintain your property – Regular upkeep and quickly addressing maintenance concerns will help you avoid issues leading to non-renewal. If your roof is old, damaged or has missing shingles, insurers may consider it a high risk for leaks or structural damage and could cancel your coverage if it’s not remedied.
• Limit insurance claims – We know, insurance is “supposed to” pay for problems with your home. We wouldn’t suggest that you pay out-of-pocket to repair a caved-in roof, but paying for minor issues can save you in the long run. And if the repair cost is less than your deductible, it’s an easy choice to keep that off your claims history.
• Improve home security and disaster preparedness – Insurance companies love to see things that will stop damage, or at least alert you to it so that you can take precautions. Think: security systems, smoke alarms, and storm-proof features. They keep your home safe and claim-free.
• Regularly review your policy – Stay informed about changes in home insurance policy non-renewal regulations and insurer policies so that you’re not caught off-guard when you’re up for renewal. Working with an insurance broker like VIU by HUB makes this step easy. We’ll do all the hard work and let you know what you need to know.

Need help? VIU by HUB’s here

Home insurance non-renewal. Homeowners insurance cancellation. New home. Remodeling finished. No matter what your insurance situation is, the VIU by HUB Advisory Team has seen it and can guide you through exactly what you need to do and know. We can help you find new, personalized policies with competitive rates.