Common ways to have your home insurance policy canceled.
Homeowners insurance policies are essentially contracts. All policies contain a section that lays out the conditions of coverage. Should the homeowner violate these terms, the insurance provider has the right to cancel their policy. To ensure that you don’t put your policy at risk, make sure you avoid these common reasons for policy cancelations.
- You Filed Too Many Claims
If you have filed several home insurance claims in a short period of time, then this can raise a red flag for your insurance provider. If your insurer decides that you are too high-risk to continue covering, then they could issue a policy cancelation. But how many claims are too many? This will depend on your individual insurer as well as the frequency and severity of the claims filed. To avoid being classified as high-risk, do not file claims for every little issue that happens on your property. You should only file claims for the damage issues that exceed the cost of your insurance deductible significantly.
- You Left Your Home Unoccupied
Your home insurance policy places a limit on the number of days that you can leave your home unoccupied. If your insurance provider finds out that you have violated this term, then this could brand you as a risky policyholder. This could result in your insurer denying your claims coverage and canceling your policy.
- You Did Not Alert Your Agent About Changes
Your insurance provider can also cancel your policy if they find out that you have been concealing information from them. For instance, if your insurer discovers that you have made renovations to your home or received a criminal conviction during your policy term, then they could decide to cancel your policy. Please note that lying or hiding important information from your insurer is considered fraud, and could come with penalties beyond a policy cancelation.
These are some of the issues that could lead to your home insurance policy being canceled. Do you have more questions about your home insurance? If so, then contact the experts at Pierce Insurance Group. We are ready to assist you with all your coverage needs today.