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Navigating Homeowners Insurance: Steps to Take after Getting Dropped

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Being dropped by a home insurance company can happen, but the good news is that other options are often available to ensure your home remains insured. You should receive a cancellation notice before this setback takes place, allowing you to find another policy with a new agency. Below are some steps you can take to make finding and securing coverage less complicated and avoid a lapse in service.

Expect Higher Rates

After an insurance provider drops you, you may need to spend more money. Keep in mind higher costs aren’t necessarily permanent. As you improve your credit history, maintain upkeep on the property—which can reduce the number of claims made each year—and maintain a good payment record, you can ask your current provider for better rates or shop around for a new agency. The objective is to protect your property, and paying a higher rate may be the necessary first step, especially after being dropped by your previous home insurance provider.

Consider Independent & State Options

Speaking with independent insurance agents can be very helpful when searching for a new agency after being dropped by your former provider. These individuals have knowledge about factors that affect your homeowners insurance eligibility, and they can provide great resources. Independent agents also work with multiple providers, allowing them to evaluate your current situation to place you on the path toward carriers more likely to offer you coverage.

The Fair Access to Insurance Requirements (FAIR) plan is available to California residents. It was established to provide residents and businesses with access to insurance regardless of location and other risk factors. Your state department will also offer great resources and information about local insurers that provide coverage for high-risk individuals.

Boost Your Credit Score

You may have received a cancellation or nonrenewal notice because of one of the top reasons: your credit score took a major hit. Home insurance companies can take decreased credit as a sign of added risk and want to avoid any future problems.

To boost your credit score, continue making timely payments for your insurance as well as other loans and accounts. You should avoid getting too close to your credit limit on credit cards and other types of lending services. Don’t allow errors to stay on your credit report. You can manage this by checking your report regularly and reporting any mishaps to have them removed promptly.

Stay Encouraged

To avoid putting your home and other assets at risk, start searching for new home insurance early instead of waiting until your coverage officially ends. Keep in mind some providers will deny your application. However, stay encouraged and continue to search for agencies.

Ask the provider why they denied your application. Again, a low credit score is one of the top causes of denial, but the age of the home, previous claim history, lapsed coverage, and being in a high-risk location are others. Considering the reasons for denial enables you to resolve manageable issues and potentially have your application reevaluated.

Ask neighbors for referrals, and don’t get discouraged. Some insurance providers offer suggestions and make referrals to other companies that are more likely to accept your application request.

Following the tips above can help you if you’re ever in the unpleasant position of having your homeowners insurance canceled. 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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