What Does it Mean If You Get a Nonrenewal Notice for Homeowners Insurance 

Being able to depend on consistent and steadfast homeowners insurance is essential for your financial security and daily stability. Unfortunately, there may be times when your insurance carrier determines that they can no longer cover you. Receiving a nonrenewal notice for your homeowners insurance can be a jarring moment, but the team at Valera Agency can guide your next steps.

What Is a Nonrenewal Notice?

You’re likely aware that your home insurance policy provides coverage for a predetermined term, such as 12 months. As each term expires, you may have the ability to renew and adjust your coverage. However, there may also be times when you’re issued a nonrenewal notice, which, as its name suggests, means your carrier has decided they will not continue to cover you and your home. This may be determined for various reasons, such as the following:

• Filing too many claims
• Having a low credit-based insurance score
• Adding or maintaining liability concerns (e.g., attractive nuisances)
• Failing to maintain or update your home
• Living in an area with changing risks, such as increased natural disaster frequency

What to Do Next

Upon receiving notice that your insurer no longer intends to cover you, consider the following steps:

1. Review the notice and identify the specific reasons for their decision.
2. Contact your insurer and ask about ways to have the decision reversed, such as by addressing the issues mentioned in the notice.
3. Shop around for a new insurance provider. This might require you to work with surplus lines carriers or your state’s Fair Access to Insurance Requirements (FAIR) plan.

How to Avoid Nonrenewals

You may be able to limit the chance of receiving a nonrenewal notice by taking steps to limit your perceived risk levels. For example, maintaining your property, such as by updating your roof and plumbing systems, might help limit carriers’ concerns. Additionally, improving your credit score and choosing not to file small claims for losses you can pay for out of pocket might help. Furthermore, bundling your homeowners insurance with other policies, such as your auto coverage, might make insurers more likely to renew.

We’re Here to Help

Contact Valera Agency today to discuss your home insurance and learn more about nonrenewal notices.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.