You might be perplexed at the sudden cancelation or non-renewal of your home insurance, but most of the time it’s a result of something you’ve overlooked in your insurance policy, and you may realize that it’s too late. A home insurance policy is necessary for every homeowner to have, which is why you should pay special attention to the policy you’re getting and the conditions that follow.
Reasons for Home Insurance Cancelation
- Misdemeanor: A homeowners insurance policy can only be canceled more than sixty days after it was purchased if the policyholder fails to pay their premium, commits fraud, or misrepresents themselves while filling their application, i.e., if they put in the wrong information on their application form, the insurance carrier has every right to cancel that policy.
- Home Deterioration: In this case, if after insuring a home, the policyholder makes certain changes that cause the deterioration of the home beyond the initial agreement of coverage or the insurer’s determination to cover the costs, then the policy will be canceled.
- Vacant Home: If a home has been vacant for thirty days or more at a time without the policyholder informing the insurer before their absence, this can lead to the cancelation of the policy. This cancellation occurs because vacant homes have a higher risk of being robbed or destroyed by fire as there’ll be no one to notify the proper authorities if such an incident happens. That is why vacation homes where owners only append a few days or weeks out of the year usually cost more to insure.
However, in most states, insurance companies must give a policyholder a thirty days written notice before canceling their policy. This notice would give the policyholder more time to prepare for defense or look for a new home insurance policy to prevent a coverage gap.
Why You Shouldn’t Allow Your Policy to Lapse
Policies usually lapse when you don’t make multiple payments or continuously miss your premium payment. It would be best if you avoided a lapse in your policy as it can be affected in ways like these:
- Inadequate Coverage: A home insurance coverage protects not only the structure of your home but also your valuables, liability expenses, and even living expenses if, for some reason, your house becomes uninhabitable or pending the time it would be reconstructed. A lapse in your policy will cause inadequate coverage or protection for your belongings.
- More Expenses: A lapse in your policy will have you making out-of-pocket expenses in the long run as you’d strive to protect your financial interest without coverage, especially if your house is mortgaged.
- Lastly, a lapse in your policy can make it harder for you to get a new carrier, although it will not be as difficult as those who had their policy canceled.
Once you notice a lapse in your policy, be quick to contact your insurance agent or company to avoid total cancelation and complications along the way. At Gee-Schussler Insurance Agency, Orland Park, Illinois, we provide the right coverage for your needs with our auto insurance for your classic car. We are also committed to helping you protect your car with the right policy at affordable rates. For more professional advice, reach out to us today!
