CAUGHT OFF GUARD BY A NON-RENEWAL NOTICE?

Here's what you need to know about your insurance and your future protection.

‍WHAT IS A NON-RENEWAL NOTICE?

‍A non-renewal notice in insurance is a notification sent by an insurance company to a policyholder informing them that their insurance policy will not be renewed once it expires. This means that the policy will end on the expiration date, and the policyholder will need to find new coverage if they wish to continue being insured.

‍IS A NON-RENEWAL NOTICE THE SAME AS A CANCELLATION NOTICE?

‍It is important to note that a non-renewal is different from a cancellation. A non-renewal occurs when the policy term ends and the insurance company chooses not to renew the policy. A cancellation, on the other hand, occurs during the policy term and typically requires the insurance company to provide a notice period and a reason for the cancellation.

MY CARRIER SENT A NON-RENEWAL NOTICE. WHAT TO DO NOW?

Insurance companies may choose not to renew a policy for a variety of reasons, including an increased risk of loss, changes in the insurance market, or if the policyholder has a history of filing frequent claims or has a large loss. When an insurance company sends a non-renewal notice, they are required to provide a reason for the decision.

If you receive a non-renewal notice, it is important to take action quickly. Your first step should be to contact your insurance company or insurance agent to find out why your policy is not being renewed. Depending on the reason, you may be able to address the issue and have your policy renewed. Alternatively, you may need to shop around for a new insurance policy to ensure that you are covered.

WHY DID MY POLICY GET NON-RENEWED?

Home insurance companies issue non-renewal notices for several reasons, including:

‍High-Risk Property: Insurance companies may choose not to renew a policy if the property is considered high-risk. This can include properties in areas prone to natural disasters such as floods or earthquakes or homes with high claims history.

‍Non-Payment: If a homeowner fails to pay their insurance premiums, their policy may not be renewed. Non-payment can also result in a lapse of coverage, leaving the homeowner unprotected in the event of a loss.

‍Non-Disclosure or Misrepresentation: Homeowners are required to disclose all relevant information when applying for insurance coverage. If the homeowner fails to disclose important information or misrepresents the property, the insurance company may choose not to renew the policy.

‍Changes to Underwriting Guidelines: Insurance companies may change their underwriting guidelines, which can result in policies not being renewed. For example, an insurance company may stop insuring homes in a specific area or no longer provide coverage for certain types of property.

‍Insurer Exiting the Market: Insurance companies may choose to exit a particular market or stop providing coverage in a specific state, resulting in policies not being renewed.

In general, insurance companies issue non-renewal notices to minimize their risk exposure and ensure that they are only providing coverage to policyholders who meet their underwriting guidelines. Homeowners who receive a non-renewal notice should work closely with their insurance company to understand the reasons why and explore alternative coverage options.

FINDING THE PACKAGE THAT IS RIGHT FOR YOU

Receiving a non-renewal notice doesn't mean the end of the road. Stay informed, explore your options, and protect your home with the coverage you need.

Partnering with an independent insurance agency like IZC Insurance Agency can help you shop multiple markets and find the right carrier to insure your home, at a price that is right for you. While claims history can limit the options you have for your insurance, it shouldn't prevent you from being able to find coverage.

Give us a call today at (404)-795-4807 or complete our free, no hassle online quote request below. We look forward to serving you!