Have you ever wondered whether your homeowners insurance might drop you if you file a claim? This is a common question among homeowners in Florida, especially given the state’s vulnerability to natural disasters like hurricanes. The good news is that insurance companies cannot drop you for simply filing a claim. However, there are other reasons why they may cancel or choose not to renew your policy. If you’re concerned about filing a claim or being dropped by your home insurance, it’s important to understand your rights and options.
Can Insurance Companies Drop You for Filing a Claim in Florida?
No, home insurance companies cannot drop you in Florida for filing a claim unless you committed fraud or made a misrepresentation or material misstatement. A material misstatement is a false statement that is important enough to have influenced the insurance company’s decision to insure you.
How Many Claims Can You Make Before Your Insurance Drops You?
There is no set number of claims that can cause your homeowners insurance to drop you. However, if you file multiple claims in a short period of time, your insurance company may consider you to be a high-risk customer and may choose not to renew your policy.
What Is Home Insurance Cancellation?
When your homeowners insurance is canceled, your insurance company terminates your policy before the end of the term. Insurers typically can cancel a policy if:
- You fail to pay your insurance premium;
- You committed insurance fraud or seriously misrepresented information on your insurance application;
- You don’t make timely repairs as requested by your insurer; or
- You violate the terms of your policy.
Insurers must provide a specific reason for cancellation in their notice to the insured and provide advance notice. During the first 60 days of coverage, insurers must give 20-day notice. After the first 60 days, insurers must provide a 45-day advance notice.
What Is Home Insurance Non-renewal?
Non-renewal refers to when your insurance company chooses not to renew your policy at the end of the term. Reasons for non-renewal can include:
- Your home is deemed high-risk due to factors such as its location or condition, and the insurance company reduces the number of policies it will renew or sell where you live;
- Your insurance company is backing out of the home insurance market in your area;
- You committed insurance fraud; or
- You filed multiple claims.
Your insurer must provide a specific reason in their notice to the insured if it non-renews a policy. They must also provide you with advance notice of at least 120 days.
What to Do If Your Homeowners Insurance Is Canceled or Non-Renewed
If your homeowners insurance is canceled or non-renewed, you can contact your insurance company to understand why and request reconsideration. You can shop around for new coverage, but be prepared to pay a higher premium if you have a history of claims or risk factors. You can also contest your cancellation if you believe it was unfair by contacting the Florida Department of Financial Services.
Let Arias & Abbass Your Attorneys Fight for Your Insurance Coverage Claim
If your Florida homeowners insurance claim has been denied or you were dropped by home insurance, our experienced attorneys can help you through the process, both inside and outside the courtroom. We’re committed to securing fair compensation and protecting you from unfair insurance company practices. We understand the stress of dealing with insurance companies and can handle every step.
Contact us today to discuss your options. Arias & Abbass Your Attorneys is ready to fight for your rights. Hablamos Español.
