When you sign up for a homeowners insurance policy, you may think that you’re guaranteed that policy until you decide to cancel it. Unfortunately, that’s not the case. In fact, your insurance company can choose to cancel or not renew your policy if they have a legitimate reason to. Let’s take a closer look at how a homeowners insurance company can drop you.
Why an Insurance Company May Drop You
It’s important to remember that insurance companies are businesses that take risks when offering insurance to a homeowner. If they feel they have a legitimate business reason that you are a greater risk than when they issued your homeowners policy, they may decide to drop you.
Some examples of those reasons may include:
- Missed monthly premium payments
- Your credit score drops significantly
- A failed home inspection
- You get a dog they would classify as “dangerous”
- An excessive amount of filed claims
How to Increase Your Chances of Keeping Your Homeowner’s Insurance Policy
There are ways to increase your chances of keeping your policy. The number one way to do that is always to make your monthly premium payments on time. If your insurance company offers autopay, this is a great way to ensure you never forget a payment. If you know that you may be late making a payment, call your insurance company immediately. They most likely will be willing to work with you or extend your payment due date if you’re upfront with them.
What Can You Do If Your Insurance Company Drops you?
It’s incredibly frustrating or even panic-inducing to be dropped from an insurance company. If you’ve already spoken with your insurance company and feel you were unfairly dropped, you can contact your state insurance department to file a complaint or dispute.
If you feel you are being unfairly dropped while submitting a homeowners insurance claim, give Fair Claim Settlement a call! Peter Johnson can review your situation and provide professional guidance.