Title: Home Insurance Cancellation, Nonrenewal and Policy Lapses - ValuePenguin
Headings: Home Insurance Cancellation, Nonrenewal and Policy Lapses
Home Insurance Cancellation, Nonrenewal and Policy Lapses
Homeowners insurance cancellation
Nonrenewal of a Home Insurance Policy
What to do when your homeowners insurance policy lapses

Content: Home Insurance Cancellation, Nonrenewal and Policy Lapses - ValuePenguin
Home Insurance Cancellation, Nonrenewal and Policy Lapses
Home Insurance Cancellation, Nonrenewal and Policy Lapses
by Chris Moon updated March 4, 2021
Homeowners insurance cancellation, nonrenewal and policy-lapsing are all different forms of discontinuation and each have their own set of consequences. This guide explains exactly why your insurance company may have terminated your coverage, what each means and how they impact a policyholder. Homeowners insurance cancellation
Nonrenewal of home insurance policy
What to do when your policy lapses
Homeowners insurance cancellation
A carrier cannot cancel a homeowners policy more than 60 days after it was purchased unless a policyholder fails to pay their premium, or committed fraud and seriously misrepresented themselves in their application. For example, if a carrier discovers a policyholder lied about their identity and applied for a policy under another individual’s name, an insurer have the right to cancel that policy. Another reason behind a policy cancellation might be a deterioration of the condition of the home that increases the risk beyond what an insurer is willing to cover. For example, say a carrier insures a home then a policyholder makes some type of drastic change to the structure. If the changes make the home uninsurable, based on the company's own determination, they will cancel the policy. A cancellation also might take place if a homeowners insurance company discovers a home is vacant. Most home insurance policies require policyholders to notify their insurer if a home is vacant for 30 days or more at a time. Uninhabited homes are more susceptible to crime and higher claims.