Insurance Dropped My Policy After Claim What Are My Options

You've just received the news that your insurance company has dropped your policy after you made a claim. This can be a stressful and confusing situation, but don't worry, you're not alone.

In the US, insurance companies can cancel policies for a variety of reasons, including making a claim. According to the article, this is often referred to as "cancellation for cause."

You have options, though. If you're in a state that requires insurance companies to provide a reason for cancellation, you can request this information from your insurance company.

Insurance policies can be cancelled for a variety of reasons, and it's essential to understand why this might happen. If you've had your policy cancelled after making a claim, you're probably wondering what went wrong.

Non-payment of premiums is one common reason for policy cancellation. If you fail to pay your premium, the insurance company can cancel your policy, but they must give you proper notice.

Frequent claims can also lead to policy cancellation. Most insurers have become stricter about the number of claims you can file before you're labeled a high-risk policyholder. This means that if you've filed multiple claims within a short period, your insurer might decide against renewing your policy.

Insurance fraud is a serious offense and can result in policy cancellation. If you've provided false information or committed fraud while obtaining your policy or filing a claim, the insurer has the right to cancel your policy.

Widespread losses in your area can also impact your insurance policy. If a particular ZIP code, city, or state is prone to widespread losses, an insurer may stop writing policies in those areas.

Here are some specific reasons why an insurance company might cancel your policy, based on the state of Florida:

It's worth noting that insurance companies are allowed to cancel policies in these situations, as long as they follow state regulations and provide proper notice.

If your insurance company has dropped you after a claim, it's essential to take immediate action to secure your home and finances. You have between 30 to 120 days' notice, depending on the state, before your policy is canceled.

First, read your nonrenewal notice carefully to understand the reason for the cancellation. If the reason is unclear, contact your insurance company to find out. Maybe you accidentally missed a payment or there was a paperwork error that can be fixed.

You'll want to start shopping for a new policy as soon as possible. Get quotes from a few different insurers to find the most affordable policy for your situation. Consider reducing your risk by addressing any issues that led to the cancellation, such as installing stormproof windows and hurricane shutters.

If you're having trouble getting approved for a new policy, you might want to look into a surplus lines insurer. These carriers are not licensed in the states they operate in and may be more open to writing a policy for a high-risk property, but expect to pay higher-than-average premiums.

Fixing any issues with your home can also help you get reinstated or secure a new policy. Check your roof, front porch, and other structural elements to ensure they're in good condition. Improving the condition of your home can reduce your chance of being denied by a new insurer.

Here are some steps to take after your policy is canceled:

Insurance companies must provide notice before canceling your policy, but the specifics vary by state. In Florida, they must give advance notice of 45 to 120 days if they intend to non-renew a policy.

If you believe your coverage is being unfairly canceled, you can file a complaint with your state's insurance regulator. This might result in your insurer reversing its decision.

In Florida, an insurance company can cancel your policy under certain circumstances, including non-payment of premiums, material misrepresentation or fraud, multiple claims in a short period, significant property changes, and natural disaster risks.

Here are some specific reasons your insurance company might cancel your policy:

If your insurance company drops you, it's essential to act quickly to avoid a lapse in coverage. Most states require proof of denied coverage by at least two insurers before you can apply for a FAIR Plan.

If your homeowners insurance company drops you after a claim, you're not out of options. You can still get a new policy, but it might take some extra effort.

If you're having trouble finding a new policy, you may want to consider shopping around and getting quotes from multiple insurers. This can help you find the most affordable policy for your situation.

Reducing your risk can also help. According to Bankrate's Extreme Weather Survey, 57 percent of U.S. homeowners have taken action to mitigate the financial impact of extreme weather damage. This might involve installing stormproof windows and hurricane shutters or replacing your current roof with a metal one.

If you're unable to find private insurance, you may be eligible for coverage through Florida's Citizens Property Insurance Corporation. This is the state's insurer of last resort and provides policies to homeowners who can't find coverage elsewhere.

If you're struggling to get approved for a traditional home insurance policy, you might consider a Fair Access to Insurance Requirements (FAIR) Plan. FAIR Plans are an option of last resort for homeowners who have exhausted other options in the standard home insurance market.

Here are some key things to know about FAIR Plans:

It's worth noting that more than 30 states and Washington, D.C. offer FAIR Plans to qualifying homeowners. If you're considering a FAIR Plan, be sure to check with your state to see if it's an option for you.