Can home insurance company drop you?

There are many reasons that homeowners insurance may be canceled or not renewed. In some situations, it is completely preventable by the homeowner. However, in many other situations, it is completely out of the hands of those who own the house.

Some of the preventable reasons for homeowners insurance cancellations and non-renewals include:

  • Non-payment of premiums
  • Non-disclosure to the company or giving incorrect information
  • Failing to comply with safety guidelines, such as removing things like pools and trampolines
  • Not meeting fire codes or other recommendations
  • Too many claims on a policy
  • Criminal charges that arise from an activity that raises the risk of your homeowners insurance policy
  • Neglecting to perform necessary repairs in order to reduce the risk to your homeowners insurance
  • Leaving the home vacant for over 60 days

Some of the reasons for cancellation of homeowners insurance that are unpreventable include:

  • A company deciding to no longer offer coverage in a particular area or state
  • Change in company policies concerning the type of homes they will insure
  • Discontinuation of the complete home line of coverage
  • Limiting the number of policies in one geographic area