Losing your insurance coverage?

Here’s what to do if your insurance is canceled or not renewed.

 

If you’ve lived through even one Florida hurricane season, you already know how important it is to have good homeowners insurance. So when your insurance company sends you a notice that they will not be renewing your policy, you may be tempted to panic.

Thousands of insurance nonrenewal notices have been sent to Florida homeowners over the past few years, leading many to wonder why they were suddenly left without coverage.

While upsetting, this scenario is common in the insurance industry. But there’s no need to panic! Here’s what you should do.

 

Nonrenewal vs. Cancellation

First, it’s important to make a distinction between a cancellation and a nonrenewal.

A cancellation is when your insurance policy is terminated before it expires.

Insurance companies can cancel policies for a number of different reasons, but in most cases, it’s due to something the policyholder did (or didn’t) do, such as failing to pay premiums or committing fraud on the insurance application.

If your insurance is canceled, you will be given a 10- or 20-day grace period to bring your policy into compliance or find replacement coverage.

An insurance nonrenewal is when your insurance company chooses not to renew your policy when it expires. Typically, nonrenewals occur because of circumstances out of anybody’s control, such as a hard insurance market.

If your insurance is not renewed, you will be allowed to keep your policy until it expires, at which time you will have to find alternate insurance coverage.

stressed woman looking at laptop

Why Did I Receive an Insurance Nonrenewal Notice?

If your insurance carrier decides not to renew your policy, Florida law states that they must give you at least 45 days’ written notice, stating the reason your policy isn’t being renewed.

Most of the reasons for insurance nonrenewals come down to too many claims.

In order to stay afloat, insurance companies must take in more than they are paying out. If there are a lot of insurance claims in a short amount of time, insurance companies need to take serious action—including pulling out of the state—in order to stay in business.

While there have been recent legislative changes that aim to improve Florida’s insurance situation, it will take time for these changes to take effect. So, what can you do in the meantime?

 

What To Do Next

First, read your Policyholders’ Notice carefully. In some cases, you may be allowed to bring your policy back into compliance by paying late premiums or making changes to your property’s risk levels.

If you feel like you are receiving a notice in error, contact your insurance agent or company.

If this isn’t possible, you should act quickly to avoid any lapse in coverage. The good news is that 45 days is usually plenty of time to find a policy with another carrier.

happy woman talking on phone

How To Find Replacement Coverage

The easiest way to get a variety of insurance quotes that match your needs and your budget is by working with an independent insurance agency.

Unlike captive agents—who are tied to a single insurance company—independent agents can provide you with quotes from multiple trustworthy insurance carriers, allowing you to find coverage that fits your needs as well as your budget.

Best of all, working with an independent agent means you’ll be working with someone who understands your needs, risk tolerance, and budget—even if you switch insurance companies.

 

Need Insurance? We Can Help!

Whether your insurance company is no longer offering coverage or you’re just curious about your options, Harry Levine Insurance can help.

As one of Orlando’s top insurance agencies for more than 40 years, we’ve built relationships with some of Florida’s most trustworthy insurance carriers. Whatever your needs, we’ll help you find coverage for your home, auto, business, and more.

As an independent agency, we have access to a wide variety of policies and carriers and we’ll use our extensive insurance knowledge to build a network of coverage that’s right for you.

Call today or visit our website for a free quote.

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