You know how important it is to have home insurance to protect your investment in your house. But what if your insurance company cancels your policy? You might feel very vulnerable and stressed without your home insurance, but maybe you’re at a loss for what to do now. What’s your next step?
Well, it’s a bad-news, good-news situation.
The bad news is that it can be difficult to get new insurance after your policy is canceled or nonrenewed, depending on your company’s reason ending your policy.
The good news is that there are things you can do to find new insurance, and we’ll explain our tips. Not all hope is lost!
What to do if your home insurance is canceled.
1. Get a copy of your CLUE report.
The CLUE is the Comprehensive Loss Underwriting Exchange. It’s a record or database of the claims history and coverage inquiries of homeowners. You have a CLUE report detailing your claims and losses, and insurers use it to find out how much of a risk you are (so it plays a part in your premium.) Your insurer may have decided that you present too much of a risk, leading to them canceling your policy.
As a place to start if your home insurance got canceled, you can request a copy of your CLUE report and give it a thorough read. You should make sure that all the claims and losses presented there are correct. If you notice any errors, you can have them fixed and explain what happened to your insurance company.
Now, you can get a free copy of your CLUE report if you’ve been canceled or nonrenewed for a reason other than the insurer leaving your area entirely. That’s just bad luck.
2. Apply to other insurance companies.
You can always shop around and look for new insurance. Insurance companies are all comfortable with insuring different amounts of risk, so you might find coverage that suits your needs elsewhere. There are a lot of home insurance companies in Georgia, after all.
It would be helpful to understand why your original company canceled your policy. Was it because of nonpayment? Do you have a dog on the insurance “dangerous dog” list? Have you made lots of claims? Having all the facts can help as you embark on your quest for new insurance – finding new homeowners insurance after being canceled can be difficult, but at least you’ll be prepared.
3. Go to the state for a FAIR plan.
Okay, what if applying to other companies doesn’t work? You’re pulling your hair out and at this point, you’re over it.
In that case, you can go to the Georgia Underwriting Association and ask about getting a FAIR plan. Fair Access to Insurance Requirements (FAIR) insurers are required to provide insurance to high-risk homeowners, so you might have more luck finding insurance from one of them.
There are still conditions you have to meet in order to get a FAIR plan. Most likely, you will have had to try to get insurance on the standard market. You may have to make improvements to your house, such as getting a new roof, to reduce your risk. (But if the improvement means you could get insurance on the standard market, you might want to go that route – you’ll probably get more competitive pricing and more coverage options.)
4. Go to the insurance commissioner and file a complaint.
Let’s say you feel that your original insurer’s reason for canceling or nonrenewing you wasn’t right or fair. You can file a complaint with the Georgia Office of Insurance and Safety Fire Commissioner. They can investigate the situation and help you with how to proceed.
5. Go to the insurance company.
You can also present your case to the insurance company directly and see what happens. You will need to present a strong argument against having your insurance canceled. Explain any changes in your lifestyle or any events that have made your risk go down.
You’ll also want to provide possible solutions that you can implement to be less of a risk to the insurer – for example, taking a higher deductible to accept more responsibility. Or maybe there’s a way to exclude a particular type of loss if you’re continually having problems with a specific type of loss. Then you’re taking the risk for that loss, not the insurance company. And they might be good with that. Getting basic insurance that excludes your “problem loss” might be a better option than getting high-risk insurance or having no insurance at all.
If your home insurance gets canceled, your initial reaction might be to get stressed out. But don’t worry – there are things you can do to get new insurance so that your home is protected. You can shop with other carriers. You can seek out a FAIR plan. You can go to the Insurance Commissioner’s Office to ask if they have any recommendations.
In other words, don’t panic. We can also help you as you try to shop for new insurance. Our agents are experts at helping people find the insurance they need that fits within their budgets. All you have to do to get home insurance quotes is fill out our quote form or give us a call.