Owning a home is a huge accomplishment, but with it comes the responsibility of protecting your investment, and that includes homeowners’ insurance. Recently, many homeowners across the country have experienced unexpected policy cancellations or non-renewals from their insurance providers. This can be a frustrating and even frightening experience, especially if you’re unsure of your next steps.

Why are homeowners being dropped?

• Homeowners insurance companies may choose not to renew a policy for a variety of reasons:
• Increased risk: If your home is in an area prone to natural disasters like hurricanes, wildfires, or flooding, insurers may consider you a high risk.
• Claims history: Filing multiple claims, especially within a short time frame, can signal to insurers that your property is a higher risk.
• Home maintenance Issues: Older roofs, outdated electrical systems, or other deferred maintenance can lead to cancellation.
• Changes in the Insurance Market: Some insurers are pulling out of certain states or regions due to rising costs, stricter regulations, or increased claims.

What to do if you are dropped

If you receive a notice that your homeowners insurance is being canceled or not renewed, here’s what you can do:

1. Act quickly: Don’t wait until your coverage lapses. Start shopping around as soon as you receive notice.
2. Call your agent: Your current insurer might offer other policy options or refer you to a partner company.
3. Understand the reason: Knowing why you were dropped can help you address the issue or avoid it with a new insurer.
4. Contact your state insurance department: They can provide guidance and connect you with resources, including insurers that may be required to offer coverage in certain situations.

Tips for shopping around

When looking for a new policy, keep these strategies in mind:

• Get multiple quotes: Compare coverage, not just price. A cheaper policy may offer less protection.
• Review your coverage needs: Ensure your policy covers rebuilding costs, not just market value. Don’t forget liability and personal property protection.
• Ask about discounts: You may be eligible for savings by bundling policies, installing home security systems, or having a newer roof.
• If you’re facing this issue or just want to make sure you’re getting the best coverage possible, now’s a great time to review your policy and explore your options.

Resources:

Florida Office of Insurance Regulation: https://www.floir.com/consumers/choices-rate-comparison-search 

Division of Insurance Agent and Agency Services: Insurance Agent and Agency Services | Florida Department of Financial Services | MyFloridaCFO

State Insurance (Fair Access to Insurance Requirement Plans):
850-413-3140.

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