Top Reasons an insurance Company Could Deny Your Coverage

If your insurance firm is about to cancel your coverage, you still have time to stop that f

If your insurance firm is about to cancel your coverage, you still have time to stop that from occurring.  The right step is to act immediately. Often, when an insurance firm notifies you about policy cancellation, likely you'll have a short time to make things right.  Here are tips to protect yourself from having coverage cancellation.   

Can insurance cancel my home policy?

The answer is yes! Like any other business, insurance companies have their own drawbacks and advantages.  Many people think that insurance will be there always to rescue them!  Unfortunately, if you don’t meet the terms, insurance may cancel your policy.

Generally, insurers are risk-takers, so try as much as possible to avoid losses to achieve their desired results.  Sometimes insurance may deny your claim for nonpayment when it finds out that your situation is too risky.  Here are 5 reasons an insurance company might cancel or deny your policy:

1.    Change in a situation

2.    Renovation, home in despair or requiring maintenance 

3.    Too many claims

4.    Too many missed premiums or non-payment of policy

5.    False declarations or criminal record

How to avoid home insurance cancellation

When you find yourself under threat of policy cancellation, likely you’ll be hunted by stress or depression.  What will do when you find your policy is canceled?  Likely, you may have trouble finding another insurance or pay extra fees. The first step is to explain your case.  Even though there isn’t a way to make an insurance company keep you as a client, try to persuade it not to cancel your policy.

What should I do if I have multiple insurance claims?

 You need to give a solid reason why an insurance company should continue insuring you regardless of the high amount of claims.  The trick is to review the claims you have made earlier. You can also ask yourself questions like these:

What was the nature of the claim?

Did the claims happen at the same address?

How much was each claim worth?

How can I present my case to the insurance company

The appropriate way to plead your case is to provide solid proof showing everything has changed.  Make sure to indicate factors like job stability or change people renting your apartment.

Ensure the data your insurance has about you on the file is accurate.  There could be a slight error, so take time to securitize everything to make it finer. You can also try to remove future claims risk or provide ideas that can reduce risks.  But if nothing has changed so far, look at ways to enhance the situation. For example, if you were robbed twice, consider installing an alarm system.

How long will take for insurance to review my case?

Never leave this to the last minute!  It may take more than days and a few calls for the professional to review your case.  Can insurance companies deny my coverage? Yes, but you can ask the person to take your review to the manager or person in charge at the company for review to stop cancellation. 

The fact that you want to protect your policy and take control of the situation by pleading your case is a plus.  So, take the case to a qualified professional and then outline some coverage guidelines that will help you stay protected and insured.

Frequently Asked Questions

What are my insurance rates going up?

There are several reasons insurance rates may go up.  These include costs of replacing or repairing your insured property increase and an increase in claims on your part.  Also, moving your car to a new state could increase the rate.

How many insurance claims can you file before you get canceled?

There is no specific number of claims that an insurance company allows before canceling your policy.  However, this may depend on the magnitude of the claims or claims activity in event of a set period like 36 months.