Is Your Homeowners Insurance Getting Non-Renewed? Here's What to Do

What Are Some Common Reasons for Non-Renewal?

Is your homeowners' insurance policy at risk for non-renewal? This can happen for a variety of reasons, and it's crucial to be aware of them so you can take timely action. This has become a frequent occurrence, not only in Beaufort County and South Carolina but across the country, as insurance carriers are pulling back from disaster-prone areas, particularly coastal regions. Other companies are reorganizing or even liquidating, adding to the trend of non-renewals.

A failed home inspection is a common reason for non-renewal. If your property doesn't meet the insurance company's safety standards due to issues like faulty wiring or an aging roof, you might receive a non-renewal notice.

Residing in areas at high risk for natural disasters is another significant factor. Insurance companies are increasingly cautious about providing coverage in zip codes prone to frequent natural disaster-related claims, such as hurricanes, earthquakes, or wildfires.

Fraudulent information on the application can also result in non-renewal. If material misrepresentations or false details are discovered, the insurer has the option to either cancel or non-renew the policy.

​Understanding your policy's terms and conditions is essential to avoid such situations. Should you receive a non-renewal notice, consider reaching out to an independent agent who can help you find a suitable new insurance provider.

By maintaining a clean claims history and ensuring that your property is in good condition, you can bolster your chances of policy retention. Stay informed and proactive to secure the coverage you need.

Understanding the Non-Renewal Notice

​Receiving a non-renewal notice from your homeowner's insurance company can be unsettling. It is essential to understand the reasons behind this decision in order to take the necessary steps to protect your property and ensure continued coverage. Nonrenewal notices can occur for various reasons, such as failing a home inspection, living in high-risk areas, or fraudulent information on the application. By comprehending the specific terms and conditions of your policy, you can prevent non-renewal and address any concerns promptly. In the event you do receive a non-renewal notice, it is advisable to reach out to your insurance provider or an independent agent who can assist you in finding a new homeowners insurance company that meets your needs. Taking proactive measures will guarantee that you have the appropriate coverage to safeguard your property and belongings.

Who Sent the Notice?

​When it comes to homeowners' insurance policies, it is important to understand who typically sends the non-renewal notice. In most cases, it is the insurance company that sends this notice to policyholders. It is their way of informing you that they will not be renewing your policy when it expires.

Insurance companies typically send non-renewal notices at least 60 days before the policy expiration date. This gives you sufficient time for researching other insurance options and securing coverage before your current policy ends.

It is crucial to pay attention to these notices, especially if you live in high-risk areas. Insurance providers often make decisions to non-renew policies based on various factors, such as claims history and risk exposure. If you receive a non-renewal notice, it is essential to start the process of finding a new homeowners insurance policy as soon as possible.

By acting promptly, you can avoid any lapse in coverage and ensure you have the necessary protection in place for your home and personal property. It is recommended to reach out to your insurance agent or explore different insurance providers to find a policy that fits your needs.
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Remember, starting the process early is key to ensuring fair access to homeowners insurance coverage in case your current insurance company decides not to renew your policy.

When Does it Take Effect?

A non-renewal notice from your homeowners' insurance company typically takes effect at the expiration of your current policy. Insurers are required to provide at least 60 days' notice prior to the policy's expiration date, giving you ample time to explore other insurance options. It is crucial to carefully review the notice and pay attention to the effective date mentioned.

To avoid a lapse in coverage, it is important to take immediate action if you wish to keep your current policy. By acting promptly, you can ensure that you have the necessary protection in place for your home and personal property. Reach out to your insurance agent or begin exploring different insurance providers as soon as you receive the non-renewal notice.

Allowing your coverage to lapse can have significant consequences. Without homeowners' insurance, you may be exposed to potential financial risks in case of damage to your home or personal property. In some cases, if you do not secure new coverage in time, your mortgage lender may opt for lender-placed insurance, which can have limited coverage and higher premiums.
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To avoid these complications, be proactive when dealing with a non-renewal notice, and act promptly to find a new homeowners insurance policy that suits your needs.

What Are Your Options?

Receiving a non-renewal notice for your homeowners' insurance policy can be unsettling, but it's crucial to remember that you have alternatives. Here's how you can navigate this scenario:

1. Review Your Insurance Claim History and Credit Score: Frequent claims or a low credit score could be contributing factors to a policy non-renewal. Understanding these elements will give you insight into why the non-renewal occurred.
   
2. Reach Out for Clarity: Contact your current insurance provider to inquire about the non-renewal reasons and any possibility for reconsideration. You can also contact your state's Department of Insurance for advice and information about your homeowner rights.
   
3. Use an Independent Insurance Agency to Shop Around: This is an excellent opportunity to compare insurance policies and providers. Unlike many other agencies, GSP Insurance Group adopts a proactive approach to client renewals, beginning the shopping process at least 60 days in advance. Utilizing an independent insurance agency like GSP Insurance Group can provide you with personalized options that align with your needs. Websites such as www.gspins.com offer convenient solutions to compare policies from various carriers.

Act swiftly to prevent any gaps in your coverage. Being proactive and considering your options allows you to secure the vital protection you need for your home and personal property.

Examine Your Claims History and Credit Score

​Before taking any action with regards to your non-renewed homeowners policy, it's important to examine your claims history and credit score. Insurance companies may choose not to renew a policy if there is a history of frequent claims or if the homeowner has a poor credit score. By understanding these factors, you can gain insight into why your policy is being non-renewed. Assess your claims history to determine if there have been any patterns of frequent or high-dollar claims. Additionally, take a look at your credit score to see if it may be impacting your insurance coverage. By examining these factors, you can be better prepared to address the non-renewal and assess your options moving forward.

How Can I Find Out My Claims History?

​If you're wondering about your claims history, the first step is to contact your insurance company. They will be able to provide you with the information you need. Ask your insurance provider for a copy of your claims history report, which will include details regarding any past claims you have made. This report is important because it provides a comprehensive overview of your claims activity and can be useful in understanding how it may impact your insurance coverage and premiums. By reviewing your claims history, you can identify any patterns or trends that may arise and take appropriate actions accordingly. Whether you have recently made a claim or are simply curious, obtaining a copy of your claims history report from your insurance company is a valuable tool to have at your disposal.

How Does My Credit Score Impact Renewal Rates?

Your credit score plays a significant role in determining the renewal rates for your homeowners insurance policy. Insurance companies use credit scores to predict your claim filing behavior and assess the risk they take on by renewing your policy. A higher credit score generally indicates a lower risk of filing claims, which may result in more favorable renewal rates. Conversely, a lower credit score may increase the perceived risk, potentially leading to higher renewal rates or even non-renewal.

Insurers consider several factors when assessing a drop in credit score. These include late payments, high credit card balances, bankruptcies, and a history of missed payments. If your credit score has decreased, it's essential to take steps to improve your credit standing. Paying bills on time, reducing credit card balances, and addressing any outstanding debts can help boost your score.
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Improving your credit score not only enhances your chances of receiving better renewal rates but can also provide other financial benefits. It can help you secure more favorable loan terms, access lower interest rates, and demonstrate financial responsibility. Taking control of your credit can have far-reaching positive effects, beyond just your homeowners insurance policy.

Contact Your Insurance Provider or Department of Insurance

​If you receive a non-renewal notice for your homeowners insurance policy, it's important to take immediate action. The first step is to contact your insurance provider or the Department of Insurance in your state. By reaching out to your insurance company, you can inquire about the reasons for the non-renewal and explore possible solutions. They can provide valuable information about any options available to you, such as switching to a different homeowners insurance provider or adjusting your coverage. Additionally, contacting the Department of Insurance can help you better understand your rights as a policyholder and ensure that the insurance carrier is acting within the legal guidelines. The department has resources and expertise to assist you in resolving any conflicts or disputes that may arise during this process. By staying proactive and seeking support from both your insurance provider and the appropriate regulatory authorities, you can navigate through this situation and find the best solution for your insurance needs.

Should I Call My Insurance Company or Go Through the Department of Insurance?

If you've received a non-renewal notice for your homeowners insurance policy, you might be wondering what to do next. One of the first steps you can take is to contact either your insurance company or the Department of Insurance.

If you choose to contact your insurance company, you can inquire about the reasons for the non-renewal, seek clarification, and explore possible solutions. Some insurance companies may be willing to reinstate your policy if any inspection-related issues are resolved or if you provide proof of necessary repairs. This option allows you to maintain your coverage with the same insurance provider.

On the other hand, reaching out to the Department of Insurance can offer a different perspective. By contacting them, you can discuss your situation, understand your rights as a policyholder, and seek guidance on your available options. The Department of Insurance can also provide information on how to dispute the non-renewal, request remediation, or file a complaint if you believe the decision is unjust.
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Ultimately, the choice between contacting your insurance company or the Department of Insurance will depend on your specific circumstances. It may be beneficial to explore both avenues to ensure you have a comprehensive understanding of your options and can make an informed decision moving forward.

What Should I Ask Them?

When faced with a non-renewal notice for your homeowner's insurance, you may have several questions about the situation and your options moving forward. Whether speaking to your insurance company or reaching out to the Department of Insurance, it's important to be well-informed. Here are some questions you can ask:
1. Non-Renewal Reason: What is the specific reason for the non-renewal? Understanding the cause behind the decision can provide insights into any necessary improvements or changes.
2. Reversing the Decision: Is there a possibility to reverse the non-renewal? Inquire if resolving any outstanding issues or providing proof of necessary repairs could lead to the reinstatement of your policy.
3. New Carrier Coverage: If my current insurance provider decides not to renew my policy, will I be able to find coverage with a different insurance company? Explore the availability of insurance policies from other providers to ensure you are not left without coverage.
4. Impact of Misrepresentation: Did any misrepresentations on my part contribute to the non-renewal? Find out if any inaccurate information you provided during the application process played a role in the decision and if it will affect your ability to obtain coverage in the future.

Asking these questions can help you better understand your situation, explore potential solutions, and make informed decisions regarding your homeowners' insurance.

Consider Shopping Around for a Different Policy

​If you have received a non-renewal notice from your homeowners insurance company, it may be time to consider shopping around for a different policy. While your current insurance provider has decided not to renew your policy, it does not mean that you are without options. By exploring insurance policies from other providers, you can ensure that you have the coverage you need for your home. This is especially important if you live in high-risk areas or if you have had a history of claims. Shopping around allows you to compare insurance premiums, coverage options, and customer service ratings to find the best fit for your needs. Keep in mind that independent agents can help you navigate the process and find a homeowners insurance provider that meets your requirements. Don't simply settle for a lapse in coverage or a limited coverage plan; take proactive steps to find a new policy that provides the protection you need.

What If I Don’t Like My Current Policy Terms or Rates?

If you find yourself dissatisfied with your current homeowners' insurance policy's terms or rates, there are steps you can take to address this issue. One option is to shop around and explore different insurance providers to find a policy that better suits your needs. Here's what you can do:

1. Compare Policies: Start by reviewing your current policy's terms and coverage. Identify the aspects that you are unhappy with and determine the ideal policy terms and coverage you are looking for.
2. Get Quotes From Different Insurers: Reach out to various insurance companies and request quotes based on the desired coverage and policy terms. Many insurance providers offer online tools or dedicated agents who can assist you in comparing quotes and finding the best option for your unique situation.
3. Find a Policy That Better Suits your Needs: Once you have collected quotes from different insurers, carefully review them to assess the coverage, limits, deductibles, and premiums. Pay close attention to any additional coverages you may need, such as flood insurance or personal property protection, as well.
By exploring different insurance providers and comparing policies, you can find a homeowners insurance policy that aligns with your preferences and better meets your needs. Remember, it's essential to ensure that the new policy provides adequate liability protection and coverage for your home and personal belongings.
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Please note that your eligibility for certain policies and rates may be influenced by factors such as your claims history, credit score, and risk exposure. However, by shopping around, you have a better chance of finding an insurance provider willing to offer you fair rates and terms.

Where Can I Look to Compare Policies and Get Quotes from Different Insurers?

If you're in the market to compare insurance policies and get quotes, you have several avenues to explore. Online marketplaces, like Insure.com or www.gspins.com, are one convenient option. These platforms enable you to compare policies from a range of insurers, streamlining your search for the best fit.

Captive agents, such as those from State Farm or Liberty Mutual, can also provide quotes, though they are limited to the policies offered by their respective companies.

However, an independent insurance agent can often be your best resource for information and alternative options. Independent agencies like GSP Insurance Group can offer personalized advice, leverage their relationships with multiple carriers, and proactively shop your policy for the best rates and coverage, often starting this process at least 60 days ahead of your renewal.

Whether you use an online marketplace, captive agent, or independent insurance agent, remember to scrutinize the coverage, limits, deductibles, and premiums offered to ensure you choose the best policy for your needs.

Authored By:
​Tyler Grizzle, Partner-GSP Insurance Group
& Lee Songer, Partner-GSP Insurance Group
GSP Insurance Group serves clients in the states of SC, GA, NC, AL, FL, TN, OH, and IN

GSP Insurance Group Headquarters
8 Buckingham Plantation Dr
​Bluffton, SC 29910

GSP Insurance Group
115 East Main Street A1B-6P
​Buford, GA 30518