Dropped by Your Home Insurance Company? What to Do

Bloomberg reports that thousands of residents throughout Louisiana and Florida lost their homeowners coverage this year as the United States prepared for another busy hurricane season. The consequences of such a loss can be grim.

Additionally, New Orleans’ local CBS channel reports that three Louisiana insurance companies shut their doors in June and July of this year – leading to cancellations in the tens of thousands.

If your homeowners’ insurance is canceled, the most important first step you can take is reaching out to an experienced New Orleans homeowners insurance claim attorney today.

Can Homeowners Insurance Drop You?

The fact is that your homeowners’ insurance provider can drop you. The insurance you purchase to protect your home in the event of an unforeseen loss is a contract between you and the insurance company. Your policy can be canceled if you fail to uphold your contractual obligations, such as making regularly scheduled payments.

Additionally, if you become too great a risk, your insurance provider may choose to cancel or not renew your policy. Examples include:

• You experience an increase in severe storms in your area.
• Your home is determined to be vacant. You fail to maintain your premises to the degree that leads to disrepair.
• You file an excessive number of claims.

However, the insurance company that provides you with homeowners coverage cannot drop or cancel your policy without cause for doing so. Some policy cancellations are not about the policyholders themselves but are in response to overall risk in the area, such as the policyholders who found their policies canceled en masse in Louisiana and Florida this year.

Cancellation vs. Nonrenewal

While cancellation and nonrenewal lead to the same thing – the end of your homeowners’ policy – there is a distinction. Consider the following:

• Nonrenewal – When an insurance company chooses not to renew your policy, it allows your policy to run its course until the last day of its term. As such, your policy is effectively canceled at that time.
• Cancellation – When an insurance company halts coverage while it is active, it cancels the policy, and there are a limited number of reasons it’s allowed to do so. Prime examples include failure to make payments and insurance fraud.

Was your homeowners’ insurance canceled? It’s important to note that you have home insurance cancellation rights. To begin with, the insurance company is required by law to provide you with a notice of cancellation within a specific number of days to allow you time to secure coverage elsewhere.

What do Do After Your Home Insurance Company Drops You

If you receive notification that your homeowners’ insurance is being canceled or will not be renewed, it’s time to take action.

Determine the reason for cancellation

Your cancellation notification should explain why your policy is being canceled. If the matter is something you can rectify, such as by making a payment, the sooner you call the insurance company, the better.

Begin exploring your options

Even if your insurance company may be willing to resolve your cancellation concern, obtaining quotes from other insurance providers might be a good idea. The threat of cancellation is a serious matter that you don’t want to be repeated, and you may be able to save money in the process. Further, if your policy is about to be canceled, there is no time to waste in terms of getting a new policy in place.

Obtain the help you need

If the problem is something more complicated than a mistake in payment or if the insurance company failed to provide you with the required time buffer to obtain alternate coverage, it’s time to consult with a dedicated homeowners insurance claim attorney.

Call an Experienced New Orleans Homeowners Insurance Claim Attorney Today

The seasoned New Orleans homeowners insurance claim attorneys at Insurance Claim HQ recognize how stressful it can be to deal with homeowners insurance companies. We dedicate our practice to skillfully defending clients’ legal rights like you when it comes to denials.

Learn more about what we can do to help you by contacting us today.

 

The content provided here is for informational purposes only and should not be construed as legal advice on any subject.