We pay a good deal of money for homeowners insurance. For most of us, our home is our biggest asset. Protecting our homes is critical. If your house is damaged in a hail storm, you can be looking at large bills to make the repairs. For example, roof replacement can be costly. A new roof can easily cost more than most of us can afford to pay in cash. So, if you make a claim for hail damage, can your insurance company cancel your policy after a hail damage claim?
Why Home Insurance is Canceled
Keep in mind, if your insurance company is going to cancel or not renew your insurance coverage, you must be given written notice. If the notice is not clear on why the insurance is being canceled, contact your insurance agent. Use the cancellation notice period as an opportunity to determine if the cancellation is warranted and to find new insurance. Here are some common reasons for cancellation:
- Vacancy – Most insurance policies require that your home be occupied to be insured. If you’ve left your home vacant, your insurance company will likely cancel your coverage. If your home is going to be vacant for more than 30 days, make sure your review your coverage to determine what the insurance company will use to justify cancellation.
- Too many claims in a policy period – Generally speaking, your insurance won’t be canceled for an occasional claim, even if you make a big claim. If, however, you make a number of claims in one policy year, your coverage may be canceled. If you can pay out of pocket for smaller home repairs, especially those that are just a bit more expensive than your deductible, you may want to do so to avoid cancellation.
- Claims for self-inflicted damage – If you have made claims for harm you’ve done to your home, you may be looking at non-renewal. This doesn’t mean that you vandalized your home. You can unintentionally cause harm to your home due to neglect or unsafe practices. This type of harm can result in cancellation. Maintain your home in an effort to avoid these types of claims.
- Dangerous stuff on the property – If your home is found to be dangerous or unsafe, your policy may be in jeopardy. For example, if your roof is leaking or in need of repair, your policy can be canceled if you fail to fix it. Potential fire hazards on the property can impact insurance. Your home must be kept in an insurable condition.
- Non-Payment – Failing to pay your bill can result in no coverage. Failing to pay your bill consistently and on time can make an insurance company want to walk away from you.
Don’t give your insurance company any reason to cancel your policy. Pay your bills and maintain your home. That way, when you need to make a bigger claim, it will not impact your coverage. Check your policy and be aware of the grounds for cancellation. Try to avoid those if you can.
If your homeowners insurance company denies your hail claim or tries to underpay the claim, you likely need the help of an attorney. Contact us today.
