If you are regularly keeping up with your homeowner’s insurance payments and you are within your policy term, is it possible for your insurance provider to cancel your homeowner’s insurance? Californians are wondering what unique situations would come up in home ownership that would cause something like this to happen. While it can be uncommon, there are some issues that can come up that will cause the insurance company to cancel your policy.
An insurance provider may cancel your policy for several major issues:
Non-payment of your premium
This issue is obvious, if you have problems making a payment, the policy will be canceled. So make sure to always keep up to date with your payment, or see if your provider offers auto-draft options or other payment options.
Discovery of willful or reckless acts, or omissions by the insured person that increase hazards.
This would be in a situation where the homeowner knew there was a major issue with the house that would cause damage – like a leaking gas pipe, but refused to get it fixed.
Fraud or Misrepresentation
Committing fraud or misrepresentation against your insurance company is a major issue. Make sure you are 100% truthful when providing information for your insurance provider.
Determination by Commissioner of Insurance that continuing this insurance policy provided by the insurance company would be a violation of the law.
Physical changes to the property that make it uninsurable
This may come up if the property is abandoned for an extended amount of time, which could leave it open to many issues that would cause serious damages.
There can be other major issues that cause an insurance provider for homeowner’s insurance in California to cancel your policy, but typically they are extreme cases. Most homeowners that maintain their home avoid issues like this to remain in good standing with their insurance providers. However, if you have concerns about your current policy, our homeowner’s insurance experts are happy to help. Call us at 877-945-7233 to get your questions answered.