8 Ways Murrieta Residents Can Have Homeowner Policy Cancelled 

Homeowners Insurance Cancelled | Slightly above 63 percent of U.S. Residents own their home, according to the latest U.S. Census, but for some getting homeowners insurance can be troublesome. Depending on where you reside or how many claims you have file, an insurer may not want to take on the risk of insuring you.

The reason a policy would be cancelled is that the risk has changed substantially for the insurance company. So, let’s look at what MoneyTalksNews.com are 8 different ways your insurance company might cancel your homeowners Insurance.

8 Things That Can Get Your Homeowners Insurance Canceled

Insurance companies may not want to cover your house for these reasons,
but you usually have options.

When a tree falls on your roof, you’ll be glad you have homeowners insurance. However, companies aren’t required to provide you with coverage. In fact, they can even cancel a policy in the middle of a term if they discover a change in circumstances that means an increased risk of a claim.

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Amy Danise, senior editor for online insurance marketplace EverQuote, says insurers can typically cancel a homeowner’s policy for any reason within 59 days of it being issued. After that, a company usually can only cancel if premiums aren’t paid, there is a change at your property or the insurer discovers you misrepresented something on your application.

If your insurance is canceled, you should receive a 30-day notice to find new coverage. But other insurers may balk at offering a policy to someone who had their prior plan revoked.

You can avoid that situation by understanding the following red flags that could cause a company to cancel your policy.

1. Trampolines and swimming pools
Something as simple as putting up a trampoline or installing a swimming pool could put your homeowners insurance in jeopardy.

“Why do they care?” asks Fabio Faschi, property and casualty team lead at Policygenius, an online insurance marketplace. The answer, he explains, is because trampolines and pools are associated with an increased risk of claims.

“Unfortunately, there are some real horror stories around these things,” Faschi says. These include broken bones and accidental drownings.

It’s best to notify your insurer in advance of your plans to add either to your property. If an insurer doesn’t want to cover a pool or trampoline, Faschi says they may be willing to adjust your policy to specifically exclude claims related to them.

2. A felon in the house
Homeowner policy cancelled bannerSometimes it’s who is living inside a home that can be a problem. An insurer might decide to cancel a policy if they discover someone in the household has been convicted of a felony such as arson, Danise says.

Insurers can’t cancel coverage midterm if the felony was disclosed in your initial application and they chose to issue a policy anyway. However, companies can cancel the insurance if such information was omitted or if someone with a felony conviction moves in at a later date.

3. Crime in the area
A rash of crime in your area may not result in an immediate cancellation, but it could affect your coverage going forward.

“Maybe you’ve had a lot of theft claims, and you’ll have to get a burglar alarm and have a higher deductible,” Faschi says.

Sometimes, though, an insurance company may simply decline to renew your policy if they believe you live in a high-risk area. In that case, you may need to work with an independent agent to shop around for other coverage. If no company wants to take the risk, your state may offer Fair Access to Insurance Requirements (FAIR) Plans which cover those who can’t buy insurance through no fault of their own.

“I’ve never seen someone who’s truly uninsurable,” Faschi says. “There are always options out there.”

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