What to Do if Your Home Insurer Drops You
If your home insurance company decides your home is too risky to insure, you still have options.
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Updated · 3 min read
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Editor & Content Strategist Homeowners insurance non-renewals are on the rise as private insurers avoid high-risk locations. Wildfires are leaving many homeowners scrambling to find coverage in Western states. Meanwhile, many people in Florida and Louisiana are facing non-renewals during hurricane season.
Here’s what to do if you get a homeowners insurance non-renewal.
What does a non-renewal mean in home insurance?
A non-renewal happens when the insurance company decides not to renew your policy when it expires. Non-renewals can happen with several types of insurance, including home and auto.
Insurers typically must give you at least 30 to 60 days' written notice if they decide not to renew your policy. Many states also require insurers to tell you why they're dropping you.
Why you might get a non-renewal notice
Here are a few common reasons why your insurer might not renew your policy:
🏚️ You failed a home inspection. In addition to in-person inspections, your insurer can also use aerial images to assess your home. It may see something risky in the images (such as roof damage).
🌪️ You live in a high-risk area. If your home is a location with frequent wildfires, hurricanes or other natural disasters, your insurer may decide not to sell policies there.
📍Your insurer no longer sells homeowners insurance in your area. Sometimes insurers leave certain regions due to challenges doing business in the state.
🤥 You committed fraud on your application. You might get a non-renewal notice if your insurer discovered you misled or didn’t disclose certain risks about your property, such as owning a dangerous dog breed or using your home as a business.
📄 You made too many claims. Sometimes home insurers may not renew your policy if you’ve filed several claims recently. This is why homeowners are often advised to avoid making small claims.
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Answer a few questions to see custom quotes and find the right policy for you. What are your rights after a non-renewal?
Every state has different laws about how insurers have to handle homeowners non-renewals. But generally, most homeowners have the right to receive written notice of a non-renewal. The notice must arrive within a specific window of time and include an explanation of why the policy is not being renewed.
While some insurers will allow homeowners to make necessary repairs to avoid a non-renewal, state laws don’t often require them to do so.
Cancellation vs. non-renewal
Your insurer may also cancel your policy, which is not the same thing as non-renewal. A non-renewal happens when your policy expires, while a cancellation can happen during the policy term.
Insurance companies generally can’t cancel a policy older than 60 days unless you don’t pay your bill or they find your application was inaccurate.
How to get homeowners insurance after a non-renewal
If you receive a non-renewal notice, you still have options. Here are some steps you can take if your homeowners insurance isn’t renewed.
Make home improvements
If you failed an inspection, making updates could help you maintain coverage even in high-risk areas.
Inspections can give homeowners the chance to fix problems like leaky roofs or exposed wiring before the policy lapses.
When making improvements, consider upgrading your home’s building materials. Newer materials may withstand weather catastrophes while also lowering your insurance costs.
Building upgrades could include:
- Replacing walls with ignition-resistant materials like stucco or fiber-cement siding to prevent fire damage.
- Switching to impact-resistant shingles for a sturdier roof.
- Installing hurricane-resistant windows if you live on the coast.
Shop around for another policy
If your previous insurer isn’t an option, you should start shopping for another policy as soon as possible. An independent insurance agent can research home insurance quotes for companies in your area.
You could ask your real estate agent, mortgage lender, builder or the previous owner for a list of companies. You can also call your state’s insurance department.
Turn to your state’s insurer of last resort
If you still can’t find coverage, you may need a state-run shared market policy. Many states offer Fair Access to Insurance Requirements policies for high-risk homes. Some states also have beach and windstorm plans for coastal properties. As “last-resort” insurance, FAIR policies offer limited coverage. The policies are also often more expensive than private home insurance options.
Below are a few examples.
California’s FAIR Plan
The California FAIR Plan sells coverage for damage from fire, lightning, internal explosions and smoke. Other optional coverage is available for an extra charge.
These policies don’t cover everything standard homeowners insurance policies do. For example, most homeowners policies include personal liability coverage and coverage for your belongings. For this reason, California homeowners should consider buying a “difference in conditions” policy that complements FAIR insurance.
Florida’s state-run insurer
Citizens Property Insurance is Florida’s insurer of last resort. This plan offers similar coverage to that of private insurers. It includes dwelling, personal property, other structures and additional living expense coverage. However, coverage limits may be lower than what you'd find on the private market.
In some areas, the company sells coverage for wind damage from hurricanes and other storms. Policies are available only through an independent agent.
Louisiana’s state-run insurer
Louisiana Citizens Property Insurance Corporation is the last-resort option for homeowners in Louisiana who can’t find coverage elsewhere. However, under state law, its policies must be more expensive than those of private insurance companies.
Other states with FAIR plans
Read more about your state's insurer of last resort
Please note that not all states have insurers of last resort.
Consider surplus lines
If you’ve exhausted all other options, surplus lines insurance may be available. Provided by specialized insurers that follow different regulations, surplus lines cover risky properties. Surplus line companies vary by state, so speak with an insurance agent once you’ve gotten rejections from at least three other insurers.
Frequently Asked Questions
How do you get homeowners insurance after being dropped?
Shop around to find other insurers that may cover your home. You can work with an independent insurance agent or compare quotes online.
Will my homeowners insurance drop me if I make a claim?
Your premium will likely increase if you file a claim. Home insurance claims can stay on your insurance claim record anywhere from five to seven years. Your home insurer may not renew your policy if you file too many claims.
What do I do if I believe my home insurer wrongly dropped me?
If you believe you were wrongly dropped, you can contest the non-renewal with your state’s department of insurance. If your policy wasn’t renewed because your home is in a high-risk area, you may be able to get coverage by taking steps to mitigate that risk. For example, adding a fire-resistant roof to a home in a wildfire-prone area could show your insurer you’ve taken steps to prevent fire damage.
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