What Can Invalidate Your Home Insurance Policy?

What can get your home insurance coverage canceled?red home cut out next to stack of coins and calculator

Just because you have home insurance coverage does not mean that you are guaranteed to have it forever.  In fact, there are several problems that can lead to the cancelation of your policy.  Here are some of the most common issues to watch out for.

Top Reasons for Policy Cancelations

  • The homeowner has filed too many claims.
  • The home is in a state of disrepair or requires maintenance or renovations that the homeowner is not taking care of.
  • The homeowner has failed to pay their premiums or has submitted late payments too many times.
  • The homeowner has been conducting criminal activity out of the home, made false declarations, or has been deemed a “moral hazard.”
  • The homeowner’s situation has changed significantly and is now too high-risk for their existing policy (also known as a material change in risk).

Can You Prevent a Policy Cancelation?

In some cases, your insurer might reconsider the cancelation if you are able to offer them an acceptable explanation for your risky behavior.  Calmly speaking to your agent and offering corroborating evidence to back up your story can help your case.  Offering proactive solutions to your risky behavior can also help.  For instance, if your policy is being canceled because you filed too many claims, then you can explain everything that you will do to prevent claims in the future.  Provide proof of your ongoing efforts to reduce your claims risk, and your insurer may give you the chance to keep your policy.

Another way to improve your chances of keeping your home insurance policy is by highlighting your loyalty.  This strategy is particularly helpful if you have been with the company for several years leading up to unfortunate claim incidents or missed payments.  To convince your agent, focus on how many years you have been with the company and remind them of the friends and family members that you have referred to them.  If you have other policies with the company, then you should also use these as evidence of your loyalty and stability.  Finally, tell your insurer that you will be willing to assume more risk by increasing your home insurance deductibles.  Taking these steps could convince your insurer to reconsider your policy cancelation.

Please keep in mind that your insurer is not obligated to continue coverage.  If you have violated the terms of your policy, then you are at your insurer’s mercy.  So, always be polite and accept their decision graciously, even if they do decide to go through with the cancelation.

This is what you need to know about having your home insurance policy canceled.  Do you have more questions about your home coverage?  If so, then contact the experts at Miller Carlisle Insurance Services.  We are ready to assist you with all your personal insurance needs today.