Top reasons why insurance providers cancel home policies.
As a homeowner, you know that you need the protection offered by homeowners insurance. What you might not know is that your insurance provider can actually cancel your policy. If you do not want to lose your coverage, then avoid making these mistakes.
- Filing Too Many Claims
If you file several home insurance claims in a short period of time, then this raises a red flag for your insurance provider. If your insurer decides that you are too high-risk to continue covering, then they could issue a policy cancelation. But how many claims are too many? This will depend on your individual insurer as well as the frequency and severity of the claims filed. To avoid being classified as high-risk, do not file claims for every little issue that happens on your property. You should only file claims for the damage or liability issues that exceed the cost of your insurance deductible significantly.
- Failing a Home Inspection
If your home insurance policy is up for renewal, then your insurance company may send an inspector to evaluate the condition of your home. If the inspector finds too many risks, then your insurer may refuse to renew your policy. Common risks include fire hazards, areas of disrepair, and damage that has not been addressed.
- Missing Payments
Your home insurance provider can also cancel your policy if you have missed a premium payment or paid late on several occasions. Usually, if you are able to pay your insurer within 30 days of the missed deadline, then they will reinstate your coverage. Your provider may offer you more flexibility depending on how long you have been with the company and whether this is a recurring issue with you.
These are some of the problems you need to avoid if you don’t want your home insurance policy to be canceled. Do you have additional questions about your homeowners insurance? If so, then contact the experts at Scavone Insurance Center in White Plains, New York. We are ready to assist you with all your coverage needs today.