You Got Non-Renewed, Now What?

Hello, good evening! Even though I'm having a blast watching the new Dallas Cowboys cheerleading docu-series on Netflix, I didn't forget about you guys. I actually really enjoy writing these newsletters. The frequency is high and definitely unsustainable, but it's good exercise and a legitimate way to connect with my network. The more entries I upload, the more responsibility I take to keep you informed about your insurance needs.

Today, I received a call from one of my clients who was distraught about receiving a non-renewal for her homeowners policy. Her concern was palpable, and I know a lot of us are dealing with it. A non-renewal notice can be concerning, especially if coverage is a condition of your mortgage. So, let's better understand the situation, why it happens, and what steps you can take. Please continue reading to learn more.

What Does Non-Renewal Mean?

When your homeowners insurance policy reaches the end of its term, your carrier may decide not to renew it. This is known as non-renewal. A non-renewal notice is sent shortly before your policy's specified term ends. Unlike cancellation, which can happen while your policy is still active, non-renewal occurs at the policy's expiration.

Why Might an Insurance Carrier Non-Renew a Policy?

Several reasons might lead to a non-renewal notice:

• Too Many Claims: Frequent claims can signal higher risk, prompting the insurer to reconsider renewing your policy.
• Drop in Insurance Score: Factors affecting your insurance score, such as credit history, might influence the insurer's decision.
• Liability Hazards: Increased risks, like outdated plumbing or an aging roof, can lead to non-renewal.
• Market Withdrawal: Insurers might stop offering coverage in your area, as we have seen with several companies exiting Florida for various reasons.

Steps to Take After Receiving a Non-Renewal Notice

1. Appeal the Decision:Insurers are required to provide an explanation for non-renewal. If you've addressed the issue or believe there's been a mistake, contact your carrier's consumer affairs division for reconsideration. Presenting documentation or agreeing to a home inspection might help your case.
2. Shop for a New Policy:Being non-renewed doesn't mean you can't obtain coverage from another insurer. My suggestion would be to work with an advisor to gather quotes from multiple companies to find the best fit and price. If you are in this position and looking for assistance, please visit my profile and get in touch with me!

Understanding Force-Placed Insurance

If you fail to secure new coverage before your policy lapses, your lender might purchase force-placed insurance to protect their financial interest. This type of insurance is significantly more expensive—typically four to ten times higher than standard homeowners insurance. Force-placed insurance ensures the lender's investment is protected but may not offer the comprehensive coverage you might need by potentially excluding coverages like personal property.

Final Thoughts

Receiving a non-renewal notice can be daunting, but acting quickly is essential. If you have found yourself in this situation, connect with me to review your options and shop around for a new policy to secure coverage for your home. Remember, not all insurance companies have the same risk appetite; many are willing to work with homeowners who've had lapses in coverage or are considered higher risk.

If you enjoyed this article, consider subscribing to my newsletter to stay informed and proactive to protect your home and financial well-being. If you have any questions or need further assistance, visit the link in my bio to connect with me. Have a great night, and watch the Dallas Cheerleading doc!