When the Letter Says Your Policy Is Ending
That letter is one insurer’s decision, not the end of your options. We start with the date on the notice and work back from it to your replacement.
What to Check on Your Notice
- The date.
- Confirm the date on which your coverage ends. Your replacement works back from it.
- The reason.
- Note the reason the insurer gives in the notice.
- The notice.
- Keep it. Send it with your request and the date your coverage ends, and work on your replacement begins from that date.
Is a Nonrenewal Different From a Cancellation?
- A nonrenewal.
- Either you or the insurer can decide not to renew a policy when it expires. A nonrenewal ends the policy at the end of its term.
- A cancellation.
- A cancellation ends the policy during its term, and the reasons it is allowed are set by state law. See Billing, Cancellation and Reinstatement.
- A renewal at a higher premium.
- This notice continues the policy at a new price. It is not a nonrenewal. If your notice is a premium increase, see what changed.
What Are My Rights When a Policy Is Not Renewed?
How much notice you get, and the reasons a policy can end, are set by state law. Depending on the state, the insurer must give you a certain number of days’ notice and explain why it is not renewing. If the reason seems unfair, or you want more explanation, call the insurer’s consumer affairs division. If that does not settle it, call your state insurance department.
Common Reasons a Policy Is Not Renewed
- The insurer is writing less of your kind of policy.
- An insurer may decide to drop a line of insurance or to write fewer policies where you live. That may say more about the insurer than about you, and another insurer may see it differently.
- The condition of the roof or the home.
- You may get a chance to keep your coverage by showing what you have done to lower the risk, such as replacing the roof. Ask for the specific details and send receipts or contracts for any repair.
- Your claim history.
- For car insurance, your claim history can affect whether your insurer renews your policy. Ask which claims the notice is based on, so the next insurer hears the full story from you.
- Something about the home the insurer did not know.
- Failing to tell the insurer about a business run from the home could lead to a cancelled policy. Tell the next insurer how the property is really used.
What If I Cannot Find a New Policy?
- Shop around first.
- Insurers have different underwriting standards, and a decision by one company does not mean that another will not offer coverage. As an independent insurance brokerage, we represent you, not a single insurance company.
- If the standard market says no.
- When the standard market declines it, we work with licensed surplus lines brokers to find specialty coverage. That market exists to provide coverage not available through licensed insurers in the standard market. It is a different kind of policy, and we explain the differences to you in writing. See Hard to Place Insurance.
- A state plan of last resort.
- Many states offer FAIR plan policies for high risk homes. They offer limited coverage and are often more expensive than a standard policy.
If a standard insurer says no, your policy may be placed this way, and it works a little differently. Some hard to place risks are insured by surplus lines carriers. These carriers are not licensed by the state as admitted insurers. Their policies can cost more, cover less or differently, and follow different cancellation and nonrenewal notice rules. They are generally not covered by the state insurance guaranty fund if the carrier fails. Surplus lines coverage is placed through a licensed surplus lines broker. We explain the differences to you in writing before you decide.
Notices We Help With
- Homeowners whose policies were nonrenewed over roof condition or another underwriting concern.
- Landlords and owners of rental property and real estate.
- Group homes and sober living residences.
- Contractors whose policies were not renewed.
- Trucking companies whose renewals increased or were terminated.
- Restaurants and bars facing a renewal they did not expect.
- Business owners in any industry.
- Policies that lapsed after a missed payment.
- Any policyholder whose notice is not described here. Describe your situation and it will be reviewed with you.
State Facts
In Connecticut, homeowners policies
- Connecticut law requires at least 60 days’ advance written notice of nonrenewal, with a clear explanation of the reason.
- After a policy has been in effect 60 days, or if it is a renewal policy, cancellation during the term is limited by law. It is generally permitted only for nonpayment of premium, material misrepresentation, or a physical change in the property that materially increases a hazard insured against.
- For questions about a nonrenewal notice, contact the Connecticut Insurance Department at insurance@ct.gov or 860-297-3900.
- Insurers may inspect the properties they insure in person or with aerial imagery such as satellite or drone photos. Aerial imagery is typically a screening tool and may be followed by a physical inspection.
- Aerial images that show only cosmetic roof conditions, such as natural discoloration or streaking, should not be used as a reason for not renewing a homeowners policy.
- If your insurer raises a concern about your roof, the Department suggests that you ask for specific details, provide documentation such as receipts or contracts if repairs are completed or scheduled, and ask whether temporary extensions or alternatives are available.
- If you cannot find coverage in the private market, the Connecticut Property Insurance Placement Facility, also known as the CT FAIR Plan, serves as the insurer of last resort.
Frequently Asked Questions
What is the difference between a nonrenewal and a cancellation?
A nonrenewal ends a policy at the end of its term, while a cancellation ends it during the term. Cancellation rules are set by state law, and the state block above addresses homeowners policies.
Does a nonrenewal mean I cannot get coverage elsewhere?
No. Insurers have different underwriting standards, and a decision by one company does not mean that another will not offer coverage.
When should I start looking for a new policy?
As soon as the notice arrives. Your replacement works back from the date your coverage ends, so send the notice with that date.
Who do I reach about my notice?
Call (203) 604-0722 or text (203) 819-7059, or email dwenz@verisrisk.net.
Send the Notice and Its Date.
Your replacement works back from that date.
