It’s happening more frequently. You get a letter from your insurance carrier that your home is being non-renewed at the end of your term. Yikes!
What do you do if your home is non-renewed?
Many homeowners have never faced this situation before. You sign up for insurance, expect to be covered if you pay, and don’t file too many claims.
However, insurance companies in California and other states are pulling out of the home insurance business, leaving homeowners wondering what to do when their policies are non-renewed. At the time of this writing, another very large insurance company has started to non-renew homeowners in California.
Non-renewal means the company will no longer offer you insurance after your term expires. It differs from a cancellation, which refers to the insurance carrier canceling your policy for a specific reason, such as non-payment, a change in risk, fraud, or material misrepresentation.
If you’ve received a home non-renewal notice in California, it’s likely because the insurance carrier finds it not profitable to do business in the home insurance sector. So, the company has decided to non-renew its homeowners in that state.
In California, your insurer is required to let you know at least 75 days before your policy expires that it will non-renew your home.
Finding homeowners insurance in California can be tricky and will likely be more costly than in the past. With fewer companies offering coverage, building replacement costs increasing, more claims, and natural disasters, premiums are on the rise.
Where do you go for insurance if your home is non-renewed?
It’s not mandatory to have home insurance, but if your home is mortgaged, your lender will ask you to get insurance coverage. If you don’t get a home insurance policy, your lender will purchase a Force-Placed insurance policy to safeguard its asset – your home. However, Force-Placed policies cost more and provide less coverage for your personal belongings. These policies only aim to secure your creditor’s investment, and they aren’t the best option for you.
The good news is that we can help you get the best home insurance policy to protect you and your home.
If you’re looking for home insurance coverage in California, you’ll want to work with a brokerage like California Insurance Now. Unlike a “captive” agent who only has access to one insurance company, we have connections with multiple carriers. This means we can help you find the best coverage and rates to fit your specific needs.
Getting non-renewed is a good time to review and update your home insurance policy. In the last several years, we have seen on the news that many homeowners have discovered too late that they were underinsured.
What to look for in a home insurance policy.
Here are a few things to consider to protect your assets fully.
- Don’t underinsure your home and its contents. The cost of rebuilding has significantly increased in the last few years.
- Dwelling coverage limit: Make sure it matches local construction costs per square foot for similar homes of similar age and quality.
- Ensure that your home policy includes Extended Dwelling Replacement Cost Coverage. This rider is worth the extra money as it extends dwelling coverage typically by 10% to 50%. You can customize and increase your coverage with different add-on home insurance riders.
If you need insurance advice or a quote, contact us. We’d love to help.