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What Happens If Your Insurance Policy is Cancelled? , 28 th Nov 2017

After watching devastating fires sweep across California, many homeowners are going back over details of their insurance policies to see what’s covered and what’s not. But would you know what to do if your home insurance was canceled?

We’ll talk about it in this issue.

How could my home insurance be canceled?

There are actually quite a few things that could trigger the cancellation of your home insurance policy.

Cancelled after an inspection.
When your policy comes up for renewal, you may be visited by an insurance company underwriter for an inspection. If any “unacceptable risks” (possible fire hazards, structures in disrepair, etc.) are found, your policy could be canceled.

Damage to your roof.
While the lifespan of a typical roof is about 30 years, roof inspections are required by some companies every 20 years. If your roof fails an inspection, your policy may be canceled.

Filing too many claims.
If numerous claims are filed on your policy, your insurance provider may cancel your policy over too many risks to insure.

Location, location, location.
In California, insurance companies rely upon the FireLine system to determine the potential risks to properties that are insured. Specifically, three factors are analyzed:

  • Availability of fuel for the fire (trees, grass, and dense brush)
  • An area’s slope – a steep slope can increase the speed and intensity of wildfires
  • Access to firefighting equipment

While providers used to assign risks to whole neighborhoods so that everyone there paid mostly the same rates, today they can zero in on a specific home and price the policy to that specific address.

One insurance provider said that a home or business owner who might have paid $2,000 for fire coverage five years ago may be looking at rates of $4,000 today for the same policy on the same structure.

Premiums not being paid.
While you will probably have a 30-day grace period for paying premiums, failing to do so can result in immediate cancellation.

What should I do if my insurance policy is canceled?

If your provider decides to cancel your insurance, you’ll be sent a notice at least 45 days before the policy is to be canceled. But there are steps you should take to get coverage elsewhere.

Shop around.
There are plenty of insurance providers, and not all of them have the same eligibility requirements.

Get in touch with the California FAIR Plan.
You can reach them at 800-339-4099. The FAIR Plan was established by the California State Legislature to make home insurance more affordable for those who are having difficulty obtaining coverage.

Call the California Department of Insurance.

By calling 800-927-4357 for a host of resources, including a list of licensed insurers here in California.

J&M Keystone, Inc. Can Help You In Dealing With Insurance Companies

If disaster strikes your home, J&M Keystone, Inc. can work directly with your insurance provider to file a claim for damage and receive payment for restoration and cleaning. No matter what time it is, call us at 800-368-2757.

 

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