You may be in a position where your home insurer has dropped you. It's common for people to find themselves in a similar situation.
The situation of a cancelled homeowners policy can be a very stressful one. You may feel like you're in a bind, but there are ways to make it easier. Here are four easy steps that will help you to get your life back on track.
What are your rights as a policyholder?
You can receive a notice in writing at least thirty days before the policy is canceled or not renewed. This gives you time to look for a new insurer and avoid paying a gap in coverage.
If the home insurance company doesn't provide you with a written notice, you can file a complaint with your state's insurance regulator. They will review the complaint and decide whether they wish to take further actions.
Your insurance cancellation rights
Insurance companies can cancel homeowner policies after 60 days if the customer has not paid their premiums, or committed fraud. A policy can be cancelled if an insurer determines that the customer's home poses a risk unacceptable, for example if there has been a fire or theft.
If the condition of your property changes, you may want to cancel the policy. A home that is damaged by fire, for example, will cost more to cover than a vacation property.
Checking your credit score is also a smart idea before buying a homeowners' policy. If you have a low credit score, it can be difficult to get a loan and insurance companies might view you as more of a risk.
It is possible to have your home policy canceled for having too many lapses. A lapse in coverage is a time period during which you have not paid your premiums. Insurance companies usually have grace periods where they will allow the policyholder to pay up for missed premiums.
Another reason for dropping home insurance is a change in risk level, or the fact that your claim history has been extensive. A change in your home's risk level can occur if there have been a lot of claims on your home or if the home has become dangerously neglected.
Your rights as an insurance policyholder
If you've dropped a previous policy, it may be difficult to obtain insurance again. This can be especially true if your credit score is low or if there are other issues. You should speak to a professional financial advisor, who will help you select the best coverage for your situation and budget.
If you don't have an agent, there are many online brokers that can help you compare rates and options. As they specialize in many home insurance companies, they can give you an idea of which are the best options for your profile.