Getting a notice in the mail that your homeowners insurance is being cancelled can be a shock. Many questions pop into your mind. Why is it being cancelled? What do you do? Is there a way around it? One thing in your favor is that homeowners insurance companies cannot cancel your insurance without giving you notice. So, even if you are cancelled, you do have time to find other coverage in order to keep your mortgage loan in good standing. If you have recently received a notice of cancellation, then read through the article below to get some tips on how to proceed.
Take a Deep Breath and Read the Notice Thoroughly
The first thing you want to do is go over the notice carefully. You need to understand why you are being cancelled. In some cases, insurance companies send out notices of cancellation when a premium is late. If you don’t pay your premium by this date, your insurance will be cancelled. If this is the case, all you have to do is make the payment by the date given and your insurance will not be cancelled. If it is a true cancellation, then find out the exact reason and the effective date.
Contact Your Homeowners Insurance Company
With something as important as your homeowners insurance, you need to follow up and take all necessary steps to get the matter rectified. Call you insurance agent and find out what you can do. In some cases, it may be possible to halt the cancellation. If payment is an issue, get your premiums up to date. If the insurance company does not have accurate or complete information, give it to them. If nothing can be done, then at least you know it’s time to move on, and you can start looking elsewhere for your homeowners insurance.
Finding New Homeowners Insurance
It depends on why you were cancelled as to how difficult it will be to find other insurance and how much you will pay for that insurance. Some matters are more serious than others. If you were cancelled because of non-payment or a large claim, you can be insured by another company, but it will cost you more. If you were cancelled because the home was left vacant for more than 60 days, you can find insurance and it may not cost you more if you put in a tenant or live there yourself. If you were cancelled for a serious issue, such as a crime performed in your home, then you may not be able to find insurance and you may even lose your home depending upon the severity of the crime.
In some instances, you may be cancelled or non-renewed because an insurance company no longer insures your type of home or offers insurance in your area. In this case, you can at least take heart in the fact that you will not be penalized for the cancellation or non-renewal.
Start Looking for Discounts
In most of the cases of cancellation, you will be facing higher homeowners insurance rates. To help counteract this, you need to dig deep for homeowners insurance discounts. Some of the biggest and most common come from getting your homeowners, auto and life insurance all from the same insurer. Also, the more secure and safe your home, the less you will pay in homeowners insurance. If you haven’t considered a security system or sprinkler system, now may be the time to do so, as they can drop your premiums significantly. Certain professions, such as farmers, teachers and government workers get discounts from certain insurance companies. Members of specific organizations get discounts from certain insurance providers as well. The key is to take some time to research which company offers you the most discounts to reduce the cost of your home insurance.
It’s Time to Shop Around
While you do have time to find other insurance, the time is limited. It’s important to get started shopping quickly and that means the internet. Online resources for home insurance shopping are plentiful, allowing you to learn about companies, policies and discounts. You can also get price quotes online. Fill out a short form and get instant quotes from which to compare rates and save money. It is the smart way to shop and save.
Feel free to use our free rate quote tool to get quotes from the top insurers in your area. In just a few minutes, you can get quotes from a number of insurance providers to help you compare rates and find the best deal on your new homeowners insurance.