In this article, CIG will share why you might have been dropped and what to do if your homeowners insurance drops you.
Getting Insurance After Being Dropped
If you’ve been dropped by your homeowners policy, the first thing you should do is shop around for a new one. Compare quotes from different providers and choose a new policy ASAP so your home doesn’t experience a lapse in protection.
Getting more than one quote won’t affect your credit. In fact, it’s wise to get a few quotes rather than landing on the first one you come across.
Reinstating Homeowners Insurance
It is possible for your homeowners insurance policy to drop you during your agreement, but they’ll typically only do so for serious legal reasons. If you’ve falsified or misrepresented your information, missed payments, or your home fails an inspection, you could be dropped.
If your insurance drops you and you have a policy in place, it’s likely that the company is required by law to give you 45 days of notice. This gives you a window to start your search for coverage from a different policy.
This 45-day window can also be used to conduct repairs – that is if you were dropped because your home failed an inspection. You can request re-evaluation during this time and see if your homeowners insurance will reinstate your policy.
Unfortunately, if the company dropped your policy because of a low credit score or filing too many claims, you likely won’t be able to ask for a re-evaluation. At that point, it’s better to explore other options.
Why Did My Policy Drop Me?
There are a number of reasons why your homeowners insurance may have dropped you. They include:
Too Many Missed Payments
- If you’re missing payments on a consistent basis, that’s a red flag for insurers.
Too Many Claims Filed
- If you’ve filed too many claims, that may tell insurers that your home is too risky to cover.
- If a provider re-evaluates your credit score and finds it to be too low, they may see you as a dangerous liability.
There are more reasons why your homeowners insurance may have dropped you. Talk to us at CIG to learn more.
Protecting Your Home
At Chapman Insurance Group, we can help evaluate your situation to either reinstate your current homeowners insurance policy or invest in a policy you can maintain into the future. Get in touch with an agent today for help.