What to know if you get dropped from your home insurance

Home insurance is must-have protection for what is likely your most valuable asset, and oftentimes mandatory if you have a mortgage. Losing it unexpectedly, whether due to your insurer’s decision not to renew or a sudden cancellation of coverage, is therefore an understandably stressful situation.

The first step in sorting it out is to determine why your insurer has either cancelled or not renewed your policy and what your rights are. From there, it is important to act quickly to avoid gaps in coverage.

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“Within the first 60 days of purchasing a homeowners insurance policy, insurers may be able to cancel it for any reason,” said Experian. After that, the insurer can cancel only for certain reasons. This can include missed premium payments, insurance fraud — such as misleading statements on your application or a failure to disclose certain details about the property — or a decline in your property’s condition that significantly increases the insurance company’s risk.

Non-renewal, meanwhile, “may happen for reasons outside your control,” said Experian, though that is not always the case. For instance, you may lose coverage for making too many claims or simply because your insurer has stopped selling policies in the state, a common occurrence in high-risk areas with frequent wildfires or hurricanes. It could also happen if you get a new pet that is not eligible for coverage under your insurance.