What to Do If Your Homeowners Insurance Gets Canceled

Getting a notice that your homeowners insurance is being canceled can be stressful. You might be wondering why it’s happening, what it means for your home, and what you’re supposed to do next.

The good news? Just because your homeowners insurance is being canceled doesn’t mean you’re out of options.

At Cabot Insurance Group, we help homeowners in Cabot, Arkansas, and throughout Central Arkansas find insurance coverage that fits their needs.

Let’s walk through why homeowners insurance policies get canceled, the difference between cancellation and non-renewal, and what steps you should take next.

Why Would an Insurance Company Cancel Your Homeowners Insurance?

Insurance companies can cancel homeowners insurance policies for several reasons. Some of the most common include:

• Too many insurance claims: Filing multiple claims may cause an insurance company to reconsider the risk of insuring your home.

• Vacant property: If your home becomes vacant, your insurance company may no longer be willing to insure it under a standard homeowners policy.

• Missed premium payments: Failing to pay your insurance premiums can result in your policy being canceled.

• Other risk factors: Insurance companies have different guidelines about which properties and risks they’re willing to insure.

If you’ve received a cancellation notice, the first step is understanding exactly why your insurance company made that decision.

Homeowners Insurance Cancellation vs. Non-Renewal: What’s the Difference?

Although cancellation and non-renewal might sound like the same thing, there’s an important difference.

What Is Homeowners Insurance Cancellation?

A cancellation occurs when your insurance company terminates your policy before its scheduled expiration date.

For example, if your policy is supposed to run through December but your insurance company cancels it effective in October, your coverage ends on the cancellation date.

What Is Homeowners Insurance Non-Renewal?

A non-renewal happens when your insurance company decides not to continue your coverage after your current policy expires.

Unlike a cancellation, your policy generally remains active until its scheduled expiration date, assuming you continue meeting the policy requirements.

Both situations mean you’ll need to find another insurance company if you want to maintain coverage on your home.

Fortunately, insurance companies generally provide advance notice of cancellations and non-renewals, giving you an opportunity to explore your options. The amount of notice depends on the circumstances and applicable requirements.

What Should You Do If Your Homeowners Insurance Is Canceled?

If you receive a cancellation or non-renewal notice, don’t panic. Here are three steps you should take.

1. Contact Your Current Insurance Company

Before doing anything else, call your insurance company or insurance agent.

Find out exactly why your policy is being canceled or non-renewed.

Depending on the reason, there may be something you can do to keep your coverage.

For example, if the cancellation is related to a missed payment or an issue that can be corrected, your insurance company may offer a way to reinstate or maintain your policy.

It’s always worth asking before moving on to another insurance company.

2. Start Shopping for Another Insurance Company

If your current insurance company isn’t willing to continue your coverage, it’s time to explore other options.

Here’s something important to remember:

Just because one insurance company doesn’t want to insure your home doesn’t mean another company won’t.

Every insurance company has its own underwriting guidelines and appetite for risk.

A property that doesn’t qualify with one insurance company may be perfectly acceptable to another.

That’s why shopping around is so important when your homeowners insurance gets canceled or non-renewed.

3. Work With an Independent Insurance Agency

Instead of contacting multiple insurance companies individually, consider working with an independent insurance agency.

At Cabot Insurance Group, we can help you explore homeowners insurance options from different insurance companies.

Whether your policy was canceled because of claims, property vacancy, or another issue, we can help you understand your options and look for coverage that fits your situation.

Our goal is to make finding homeowners insurance as simple and stress-free as possible.

Don’t Wait Until Your Homeowners Insurance Expires

One of the biggest mistakes you can make after receiving a cancellation or non-renewal notice is waiting until the last minute to look for coverage.

You want to avoid having a gap in your homeowners insurance.

If your policy is being canceled, pay close attention to the effective cancellation date. If your policy is being non-renewed, make sure you know when your current coverage expires.

Start exploring replacement coverage as soon as you receive the notice so you have time to review your options.

Need Homeowners Insurance in Cabot, Arkansas? We Can Help!

If your homeowners insurance has been canceled or non-renewed, you don’t have to figure everything out on your own.

At Cabot Insurance Group, we help homeowners in Cabot and throughout Central Arkansas shop for homeowners insurance.

Different insurance companies accept different risks, and we’re here to help you explore your options.

Received a homeowners insurance cancellation or non-renewal notice?

Contact Cabot Insurance Group today and let us help you find your next homeowners insurance policy.

Get a Homeowners Insurance Quote