One important part of homeownership is having the peace of mind that their home is protected from damages. However, it is possible that your home insurance provider will cancel your policy. Here are some reasons why this can happen and you will have a lapse in coverage.
Not Paying Your Bill
The most common reason for a home insurance policy cancelation is simply not paying your insurance bill. It is incredibly important that you pay your premiums on time and by the due date. If you do not pay your bill, your insurance provider will likely notify you that you missed a payment, what the penalty is, and how long you have to make a payment before you lose coverage.
This can be extremely problematic if you have a mortgage that must have home insurance coverage. If you have a history of not paying your bill on time, your mortgage lender may include those costs of insurance as part of your escrow account and simply have you pay more to cover the costs of homeownership.
Evidence of Fraud
Home insurance providers occasionally perform audits to ensure that they are insuring the type of home that they think you have. If there is any evidence of fraud that they find during an audit, it is possible that your policy will be canceled. This is more common when people perform major renovations to their home and do not tell their insurance provider because they are worried about their premiums going up. For example, finishing a basement and turning it into an additional living space, or adding an addition to the home that adds additional square footage.
In addition, telling your insurance provider about these renovations is always a good idea to ensure that you have enough coverage. If you are in a total loss scenario where you need to rebuild your home, you may only have enough coverage to build the equivalent of what the original structure of your home was at the time you got the insurance policy.
Too Many Claims
If you have been making a lot of claims with your insurance provider, they may cancel your policy because you are viewed as too high of a risk. This means you should consider how often you actually use your home insurance policy to make repairs to your home. Only use your insurance for needed repairs.
If you need new home insurance, contact a company like Ronald H. Krupa Insurance Agency.Share