What To Do if You Are Dropped From Your Home Insurance

Dealing with a dropped or nonrenewed home insurance policy can be a headache, but you aren’t alone. Insurance rates and availability have been on somewhat of a rollercoaster in recent years, with prices rising and availability declining. Coastal states like Florida and California have been seeing an exodus of home insurance options in recent years, and other inland states are starting to see some of the same. The increasing frequency and severity of weather-related disasters spur a big part of this problem.

However, if you find yourself scrambling for home insurance, the bigger picture may be of less interest. What’s important to know is that you have options and resources. When your home insurance company drops you, don’t give up; let Bankrate walk you through the process of getting your home insured once again.

Reasons a home insurance company will cancel or not renew your policy

There are many different reasons why a home insurance company may choose to cancel or nonrenew a policy. Some of the most common causes include:

• Non-payment: Your insurance policy is a legal contract between you and your insurer. In exchange for a premium, your insurer agrees to compensate you for covered losses. If you stop paying your premium, your insurance company will eventually cancel your home insurance policy for non-payment.
• Frequent claims: Filing home insurance claims often could cause your home insurance premium to increase. And if you’ve filed multiple claims within the past few years, it’s possible that your home insurance company might cancel your policy altogether. Homeowners with a lengthy claim record are generally viewed as riskier to insure, and your insurance company may deem your property too high risk to keep on their books.
• Insurance fraud: Insurance fraud is illegal, and it has serious ramifications. For example, if you intentionally set your house on fire to try to collect an insurance payment, your insurance policy will most likely get canceled, along with other potential consequences.
• Underwriting issues: Certain underwriting issues can also lead to dropped insurance. For instance, if an adjuster visits your home after a claim and notices that it does not meet the insurer’s underwriting guidelines, it’s possible that your policy will get canceled. Maybe there’s a dead tree on the property that wasn’t there when your policy began, or maybe you put in a swimming pool without notifying your insurance company. Such actions can impact an insurer’s decision to cover your home.
• Widespread losses: Insurance companies can, for the most part, pick and choose where they write policies. If a particular ZIP code, city or state is prone to widespread losses (like wildfires or hurricanes), an insurer may stop writing policies in those areas.

Cancellation vs. nonrenewal: Is there a difference in how my home insurance company dropped me?

Home insurance companies are generally restricted by rules regulating how and when they can drop a policyholder. For a cancellation, the requirements are often stricter than for a nonrenewal. This is partly because cancellations can occur during the active term of the policy, effectively canceling it while it would otherwise be in effect. Inversely, nonrenewal happens in the window between a policy’s expiration and its renewal. Nonrenewal is generally more permissible for carriers than cancellations but usually involves a required notification period, during which the carrier must inform the policyholder of the nonrenewal.

Cancellations are more often the result of fraud, non-payment, significant changes to the covered property or other extreme circumstances. A cancellation can have a bigger impact on homeowners than a nonrenewal for a couple of reasons. For instance, a cancellation will look worse on a homeowner’s insurance record, as the cancellation would likely be the result of violating the terms of their policy in some way. They would receive a notice of the upcoming cancellation, leaving them scrambling to find a new policy in time. Additionally, the cause behind the cancellation may make it difficult to find a new policy with other carriers.

Nonrenewals are still problematic for homeowners, but not as much. Nonrenewal can occur for several reasons, but it often doesn’t need to be as extreme or involve violating the terms of the policy. Common reasons can include poor property maintenance, increased risk assessment of the location, shifts in the carrier’s coverage options for the area and more. Your carrier will have to notify you in advance of a nonrenewal. Depending on the reason(s) behind the nonrenewal, the circumstances may not make it more difficult to find a replacement policy.

What should you do if your homeowners coverage is dropped?

If your homeowners insurance dropped you, they would have had to give you a heads up. Exact timelines will vary by state, but in general, your insurance company should give you between 30 to 120 days’ notice if it plans to nonrenew your policy. The timeline becomes shorter if the reason for cancellation has to do with non-payment or insurance fraud.

The first thing to do when you receive a nonrenewal notice is to read it carefully. If your insurance company did not disclose the exact reason for the decision, contact a representative to find out. Maybe you accidentally missed a payment or there was a paperwork error that can be fixed. 

If you can’t amend the situation with a phone call and your policy is scheduled to be canceled, here’s how to get homeowners insurance after being dropped:

• Shop for a new policy: Start shopping for a new home insurance policy as soon as possible. Get quotes from a few different insurers to find the most affordable policy for your situation.
• Reduce your risk: According to Bankrate’s Extreme Weather Survey, 57 percent of U.S. homeowners have taken action to mitigate the financial impact of extreme weather damage. If your policy was canceled due to risk-related issues, see if you can address them. For instance, if your home is in a high-risk hurricane area, consider installing stormproof windows and hurricane shutters, or replace your current roof with a metal one. 
• Look into a surplus lines insurer: Some homeowners have a harder time getting approved for coverage due to factors that are out of their control. In this case, you might want to consider a surplus lines insurer. While fully legal, these carriers are not licensed in the states they operate in and therefore not beholden to a particular state’s usual insurance regulations. Because of this, a surplus lines insurer may be more open to writing a policy for a high-risk property. However, you can usually expect to pay higher-than-average premiums. 
• Improve the condition of your home: In some cases, the policy may be dropped because of the state of your home. This could include the roof being in poor condition or other structural issues. In such cases, you may be able to address the issue that caused the policy to be canceled and get it reinstated. If you’re unable to reinstate your policy, the improved conditions of your home should help reduce your chance of being denied by a new insurer.

Home insurance cancellation laws by state

In many states, insurance companies must provide some type of notice before proceeding with a policy cancellation. However, every state has unique laws regarding home insurance cancellation and nonrenewal. 

If you have questions about the home insurance cancellation laws in your state, you can notify your state’s Department of Insurance using the contact information below:

• Department of insurance contact info for each state
  

  State	Department of Insurance contact information
  Alabama	Department of Insurance 201 Monroe St, Ste 502, P.O. Box 303351 Montgomery, AL 36104Phone: 334-269-3550 Email: [email protected] https://www.aldoi.gov/
  Alaska	Department of Community and Economic Development, Division of Insurance Anchorage office: 550 W 7th Ave, Ste 1560, Anchorage, AK 99501 Juneau office: 333 Willoughby Ave, 9th Fl, Juneau, AK 99801 Juneau mailing address: Division of Insurance, P.O. Box 110805, Juneau, AK 99811 Phone: 907-269-7900 Email: [email protected] https://www.commerce.alaska.gov/web/ins/
  Arizona	Department of Insurance & Financial Institutions 100 North 15th Ave, Ste 261 Phoenix, AZ 85007Phone: 602-364-3100 Email: [email protected] https://difi.az.gov/
  Arkansas	Department of Insurance 1 Commerce Way Little Rock, AR 72202Phone: 501-371-2600 or 800-282-9134 Email: [email protected] https://insurance.arkansas.gov/
  California	Department of Insurance Sacramento office: 300 Capitol Mall, 17th Fl, Sacramento, CA 95814 Los Angeles office: 300 South Spring St, 14th Fl, Los Angeles, CA 90013 Oakland office: 1901 Harrison St, 6th Fl, Oakland, CA 94162 Phone: 800-927-4357 or 800-482-4833 http://www.insurance.ca.gov
  Colorado	Department of Regulatory Agencies, Division of Insurance 1560 Broadway, Ste 850 Denver, CO 80202Phone: 303-894-7499 Email: [email protected] https://doi.colorado.gov/
  Connecticut	Department of Insurance Physical address: 153 Market Street, 7th Fl, Hartford, CT 06103 Mailing address: P.O. Box 816, Hartford, CT 06142 Phone: 860-297-3800 https://portal.ct.gov/cid
  Delaware	Department of Insurance Dover address: 1351 West North St, Ste 101, Dover, DE 19904 Wilmington address: 503 Carr Rd, Ste 202, Wilmington, DE 19809 Georgetown address: 28 The Circle, Ste 1, Georgetown, DE 19947 Phone: 800-282-8611 Fax: [email protected] Home
  District of Columbia	Department of Insurance, Securities and Banking 1050 First Street NE, Ste 801 Washington, DC 20002Phone: 202-727-8000 Email: [email protected] http://disb.dc.gov/
  Florida	Office of Insurance Regulation 200 East Gaines St Tallahassee, FL 32399Phone: 850-413-3140 http://www.floir.com/
  Georgia	Insurance and Fire Safety 2 Martin Luther King, Jr. Dr Atlanta, GA 30334Phone: 404-656-2070 Email: [email protected] https://oci.georgia.gov/
  Hawaii	Department of Commerce and Consumer Affairs, Insurance Division Physical address: King Kalakaua Building, 335 Merchant Street, Rm 213, Honolulu, HI 96813 Mailing address: P.O. Box 3614, Honolulu, Hawaii 96811 Phone: 808-586-2790 Email: [email protected] http://hawaii.gov/dcca/ins
  Idaho	Idaho Department of Insurance 700 West State Street P.O. Box 83720 Boise, ID 83720-0043Phone: 800-721-3272 Email form: https://doi.idaho.gov/contact-doi/?id=1 Home
  Illinois	Illinois Department of Insurance Springfield office: 320 West Washington St, Springfield, IL 62767 Chicago office: 115 S. LaSalle Street, 13th Floor, Chicago, IL 60603 Phone: 866-445-5364 Email: [email protected] http://insurance.illinois.gov/
  Indiana	Department of Insurance 311 W Washington St, Ste 300 Indianapolis, IN 46204Phone: 800-622-4461 or 317-232-2395 Text: 888-311-1846 Email: [email protected] https://www.in.gov/idoi/
  Iowa	Division of Insurance 1963 Bell Ave, Ste 100Des Moines, IA 50315Phone: 515-654-6600 Contact formhttps://iid.iowa.gov/
  Kansas	Department of Insurance 1300 SW Arrowhead Rd Topeka, KS 66604Phone: 785-296-3071 or 800-432-2484 Email: [email protected] Home
  Kentucky	Kentucky Department of Insurance 500 Metro Street, 2 SE 11 Frankfort, KY 40601Phone: 502-564-3630 Email: [email protected] http://insurance.ky.gov/
  Louisiana	Department of Insurance 1702 N Third St Baton Rouge, LA 70802Phone: 255-342-5900 or 800-259-5300 Email: [email protected] http://www.ldi.state.la.us
  Maine	Bureau of Insurance Physical address: 76 Northern Ave, Gardiner, ME 04345 Mailing address: #34 State House Station, Augusta, ME 04333 Phone: 207-624-8475 or 800-300-5000 Email: [email protected] https://www.maine.gov/pfr/insurance/home
  Maryland	Maryland Insurance Administration 200 St. Paul Pl, Ste 2700 Baltimore, MD 21202Phone: 410-468-2340 Complaint form link http://www.mdinsurance.state.md.us
  Massachusetts	Division of Insurance 100 Washington St, Ste 810 Boston, MA 02110Phone: 617-521-7794 or 877-563-4467 Email: [email protected] https://www.mass.gov/orgs/division-of-insurance
  Michigan	Michigan Department of Insurance and Financial Services Physical address: 530 W Allegan St, 7th Fl, Lansing, MI 48933 Mailing address: P.O. Box 30220, Lansing, MI 48909 Phone: 517-284-8800 or 877-999-6442 Email: [email protected] http://www.michigan.gov/difs
  Minnesota	Department of Commerce 85 7th Pl East, Ste 280 Saint Paul, MN 55101Phone: 651-539-1500 Online complaint form https://mn.gov/commerce/insurance/
  Mississippi	Department of Insurance Physical address: 1001 Woolfolk State Office Building, 501 North West St, Jackson, MS 39201 Mailing address: P.O. Box 79, Jackson, MS 39205 Phone: 601-359-3569 Email: [email protected] https://www.mid.ms.gov/
  Missouri	Missouri Department of Insurance Physical address: 301 West High St, Rm 530, Jefferson City, MO 65101 Mailing address: P.O. Box 690, Jefferson City, MO 65102 Phone: 573-751-4126 Email: [email protected] http://insurance.mo.gov/
  Montana	Montana Insurance Department 840 Helena Ave Helena, MT 59601Phone: 406-444-2040 Fax: 406-444-1980 Home
  Nebraska	Nebraska Department of Insurance P.O. Box 95087 Lincoln, NE 68509-5087Phone: 402-471-2201 Fax: 402-471-4610 https://doi.nebraska.gov/
  Nevada	Nevada Division of Insurance Carson City office: 1818 E. College Pkwy, Ste 103, Carson City, NV 89706 Las Vegas office: 3300 W Sahara Ave, Ste 275, Las Vegas, NV 89102 Phone: 888-872-3234 https://doi.nv.gov/
  New Hampshire	New Hampshire Insurance Department 21 S Fruit St, Ste 14 Concord, NH 03301Phone: 603-271-2261 Fax: 603-271-1406 Email: [email protected] https://www.insurance.nh.gov/
  New Jersey	New Jersey Department of Banking and Insurance 20 West State St P.O. Box 325 Trenton, NJ 08625Phone: 609-292-7272 https://www.nj.gov/dobi/index.html
  New Mexico	New Mexico Office of Superintendent of Insurance Santa Fe office: 1120 Paseo De Peralta, Santa Fe, NM 87501 Albuquerque office: 6200 Uptown Blvd NE #400, Albuquerque, NM 87110 Phone: 855-427-5674 https://www.osi.state.nm.us/
  New York	New York State Department of Financial Services New York City office: 1 State St, New York, NY 10004-1511 Albany office: 1 Commerce Plaza, Albany, NY 12257 Buffalo office: 535 Washington St, Ste 305, Buffalo, New York 14203 Garden City office: 1399 Franklin Ave, Ste 203, Garden City, NY 11530 Syracuse office: 333 East Washington St, Syracuse, NY 13202 Phone: 800-342-3736 Email: [email protected] https://www.dfs.ny.gov/
  North Carolina	North Carolina Department of Insurance Physical address: 3200 Beechleaf Ct, Raleigh NC 27604 Mailing address: NC Department of Insurance, 1201 Mail Service Center, Raleigh, NC 27699-1201 Phone: 855-408-1212 https://www.ncdoi.gov/
  North Dakota	North Dakota Insurance Department 600 East Boulevard Ave Bismarck, ND 58505-0320Phone: 701-328-2440 Email: [email protected] https://www.insurance.nd.gov/
  Ohio	Ohio Department of Insurance 50 W Town St, Ste 300 Columbus, Ohio 43215Phone: 614-644-2658 or 800-686-1526 Contact form https://insurance.ohio.gov/home
  Oklahoma	Oklahoma Insurance Department 400 NE 50th Street Oklahoma City, OK 73105Phone: 405-521-2828 Home
  Oregon	Oregon Division of Financial Regulation Physical address: 350 Winter St NE, Rm 410, Salem, OR 97301 Mailing address: PO Box 14480, Salem, OR 97309 Phone: 503-378-4140 or 888-877-4894 Fax: 503-947-7862 https://dfr.oregon.gov/insure/Pages/index.aspx
  Pennsylvania	Pennsylvania Insurance Department 1326 Strawberry Square Harrisburg, PA 17120Phone: 717-787-2317 Contact form http://www.insurance.state.pa.us
  Rhode Island	State of Rhode Island, Department of Business Regulation 1511 Pontiac Ave Cranston, RI 02920Phone: 401-462-9500 Fax: 401-462-9532 https://dbr.ri.gov/insurance/consumers
  South Carolina	South Carolina Department of Insurance 1201 Main St, Ste 1000 Columbia, SC 29201Phone: 803-737-6160 Email: [email protected] Contact form http://doi.sc.gov/
  South Dakota	South Dakota Division of Insurance 124 South Euclid Ave, 2nd Fl Pierre, SD 57501Phone: 605-773-3563 Fax: 605-773-5369 https://dlr.sd.gov/insurance/
  Tennessee	TN Department of Commerce and Insurance 500 James Robertson Pkwy Nashville, TN 37243-0565Phone: 615-741-2241 Email: [email protected] https://www.tn.gov/commerce.html
  Texas	Texas Department of Insurance Physical office: 1601 Congress Ave, Austin, TX 78701 Mailing address: P.O. Box 12030, Austin, TX 7871 Phone: 800-252-3439 or 800-578-4677 https://www.tdi.texas.gov/index.html
  Utah	Utah Department of Insurance 4315 S 2700 W, Ste 2300 Taylorsville, UT 84129Phone: 801-957-9200 or 800-439-3805 Contact form Home
  Vermont	State of Vermont, Department of Financial Regulation 89 Main S Montpelier, VT 05620-3101Phone: 802-828-3302 or 800-964-1784 Email: [email protected] https://dfr.vermont.gov/insurance
  Virginia	Bureau of Insurance Physical address: Bureau of Insurance, 3rd Fl, 1300 E Main St, Richmond, VA 23219 Mailing address: State Corporation Commission, Bureau of Insurance, P.O. Box 1157, Richmond, VA 23218 Phone: 804-371-9631 or 800-552-7945 https://www.scc.virginia.gov/pages/Bureau-of-Insurance
  Washington	Office of the Insurance Commissioner, Washington State Mailing address: P.O. Box 40255, Olympia, WA 98504-0255 Street address: 5000 Capitol Blvd, SE, Tumwater, WA 98501 Phone: 360-725-7000 or 800-562-6900 Contact form  http://www.insurance.wa.gov
  West Virginia	West Virginia Offices of the Insurance Commissioner Physical address: 900 Pennsylvania Ave, Charleston, WV 25302 Mailing address: WV Offices of the Insurance Commissioner, ATTN: Property & Casualty Consumer Services Division, P.O. Box 50540, Charleston, WV 25305-0540 Phone: 888-879-9842 or 304-558-3386 Fax: 304-558-4965 http://www.wvinsurance.gov/
  Wisconsin	Wisconsin Office of the Commissioner of Insurance 101 East Wilson St. Madison, WI 53703 Phone: 608-266-3585 http://oci.wi.gov/
  Wyoming	Wyoming Department of Insurance 106 E 6th Ave Cheyenne, WY 82002Phone: 307-777-7401 Fax: 307-777-2446 Contact form https://doi.wyo.gov/

   

What is a FAIR Plan?

If you’re struggling to get approved for a traditional home insurance policy, you might consider a Fair Access to Insurance Requirements (FAIR) Plan. FAIR Plans are an option of last resort for homeowners who have exhausted other options in the standard home insurance market. These plans make it possible for some homeowners to get coverage if they have been repeatedly denied. In fact, in order to qualify for a FAIR Plan policy, you will likely need to prove that you were denied in the private market at least twice. That said, qualification guidelines vary based on your state. 

FAIR Plans are state-managed programs, which are funded by private insurance providers licensed in a particular state. Unlike a standard home insurance policy, where you receive coverage from one company, FAIR plans are shared market plans, where you’re insured by several companies. With home insurance through a FAIR Plan, multiple insurance companies are providing your coverage. In that regard, it limits the risk that a single insurance company has to take on. If you make a claim, the companies that insure you each pay for some of the loss.

The type and amount of coverage you can get from a FAIR Plan depends on your state. However, these policies typically offer less protection than regular home insurance policies and are often more expensive.

According to the Insurance Information Institute, all FAIR Plans include coverage for fires, vandalism, riots and windstorms. Some FAIR Plans include personal liability insurance, but it depends on the state.

As of 2023, more than 30 states and Washington, D.C. offer FAIR Plans to qualifying homeowners. Colorado recently established a state FAIR Plan as well.

When should I look into getting a FAIR plan?

Once you receive notice that your homeowners insurance company dropped you, you should start shopping for new policies. If you get denied by two or more home insurance companies, it’s probably a good idea to look into a FAIR Plan. Most states require proof of denied coverage by at least two insurers before you can apply for a FAIR Plan.

If your home insurance policy gets canceled, it’s important to act quickly, whether you get another standard home insurance policy or a FAIR Plan. Once your policy expires, you will have no home insurance coverage. Or, if you have a mortgage on your home, your financial lender may implement forced-place insurance, which is expensive and covers very little. 

If you let your policy lapse, it could be more difficult to get another home insurance policy in the future, and the rates could be more expensive. Additionally, if anything happens to your home or property during the lapse, you will be responsible for the damage out of pocket. You can avoid a lapse in coverage by purchasing a new home insurance policy that starts a day or two before your old policy terminates.

Frequently asked questions

• Is it hard to get home insurance after being dropped?
  

  Depending on where you live and the circumstances surrounding the cancellation, it can be challenging to get home insurance after being dropped. In parts of the country impacted by severe weather events, such as Florida and California, it is becoming more difficult to obtain coverage. The first step is to shop around and find out what options may be available. If you are unable to find insurance, you may need to seek coverage through your state’s FAIR Plan (assuming it’s an option). FAIR Plans are state-managed programs available in 30-plus states and Washington, D.C.

• How many claims can you have before a home insurance company drops you?
  

  While there isn’t necessarily a specific number of claims that cause insurance companies to drop a policyholder, companies may opt to not renew policies based on one’s claim history. This could be due to the number of claims made, frequency of similar claims or the severity of claims filed.

• Can an insurance company drop you without notice?
  

  Insurance companies are typically required to provide some form of notice before cancellation or nonrenewal. Depending on the state’s laws, this usually takes place 30 to 120 days before the policy ends.