Can Homeowners Insurance Drop You because of a Claim?
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Can a Claim Prevent Renewal of Your Homeowners Insurance Policy?

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Homeowners frequently cringe when they need to file claims with their insurance companies out of fear their premiums will increase in the future. Yet your insurance policy is meant to be a financial safety net in the event of major catastrophes. Unfortunately, it’s possible for an insurance company to drop your homeowners coverage after major or frequent claims. But the company must follow strict guidelines regarding how and when this can happen. 

Even if your coverage gets dropped, you also have options for getting a new policy that prevents you from facing total losses. Exploring your options for maintaining coverage helps you eliminate the stress you may be experiencing right now. The experienced agents from Altra Insurance Services, a leading provider of homeowners insurance San Diego residents rely on for high-quality service and affordable coverage, explain.

Expect a Notice before Your Policy Expires

Your homeowners insurance policy has a start and end date, which protects you from being dropped during the course of your established coverage. However, your insurance company may opt out of providing you with a renewal once the coverage ends. 

While this is upsetting, they do have to give you notice of a non-renewal at least 75 days before your policy expires. This allows you enough time to find a new insurance company to avoid a lapse in your coverage. Make sure to read all of the paperwork you receive from your insurance company, especially after filing multiple or large claims.

Know Your Rights

In California, some homeowners are offered protections for maintaining homeowners insurance. For instance, if your claim was due to a natural disaster, your insurance company may be required to provide you with at least two renewals before they can drop you from their coverage. Alternatively, some policies offer guaranteed renewal provisions. 

Reach Out to Your Insurance Company

Once you receive a non-renewal notice, you’ll want to contact your insurance company to find out the reasons along with what you might be able to do to keep the coverage. In some cases, you might be able to make improvements to your home to get a new policy. Knowing more about the non-renewal can also help you proceed with making your home a safer option for insurance companies to cover.

Address All Unacceptable Risks

One of the most common reasons to lose coverage is owning a home that’s considered a high risk due to being in a wildfire zone. You could also lose coverage for a home that’s aging or not being properly maintained for long periods, which could result in problems such as the roof developing significant damage. Once you know which risks your home is flagged for, you can begin working to eliminate the ones you can. For instance, many local fire departments offer inspections and mitigation efforts such as brush clearing to reduce the risk of wildfires in a community.

Start Shopping Around

Most homeowners can find an insurance company that’s willing to offer coverage for high-risk homes. Although you may need to make accommodations, such as accepting a higher premium or reduced coverage amounts, working with a new insurance company can help you get a new policy. As you shop around, make sure to provide information about any improvements you’ve made to your home to help you get the best rates.

For reliable, affordable homeowners insurance, San Diego homeowners know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and auto insurance. Request a free quote by calling one of our friendly agents today.

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