What to Do If You’re Facing Home Insurance Cancellation

Call your insurance company right away to understand the reason behind the home insurance cancellation, and start gathering quotes from new insurers.

Amy Beardsley
Written byAmy Beardsley
Photo of an Insurify author
Amy BeardsleyInsurance Writer
  • 3+ years writing about auto, home, and life insurance

  • 7+ years in personal finance and technology

Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.

Featured in

media logomedia logo
Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo

Updated January 6, 2025

Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Getting a home insurance cancellation can feel like a punch to the gut. It can happen for various reasons, from missed payments to too many claims, or even because your insurer is pulling out of your area due to rising risks from wildfires, storms, and flooding. If you receive a cancellation notice, don’t panic — you have options.

This guide will walk you through the steps to protect your home if your insurance company ends your policy and offer tips to prevent it from happening in the first place.

Save on Your Next Home Insurance Policy

Compare rates from the nation’s leading insurance companies

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

What to do if your homeowners insurance is canceled

It’s natural to want to avoid dealing with a cancellation notice. But taking action right away puts you in the best position to protect your home. If you receive a cancellation notice, follow these steps.

Evaluate the reason for cancellation

Start with understanding why your home insurance company is dropping your coverage. Knowing this will shape your next steps. The notice of insurance cancellation should spell out the specific reasons for the decision. These could be missed payments, frequent claims, or your insurer pulling out of your area.

Contact your insurance company

Once you know the “why” behind the cancellation of your home insurance policy, call your insurance company. Sometimes, especially if it’s due to missed payments, you can turn things around. The company could reinstate your policy if you catch up on payments or show that you’ve fixed whatever triggered the termination.

Improve your risk profile

Next, improve your risk profile by making your property more insurance-friendly. It’s like sprucing up your house before selling it — except here, you’re making your property more attractive to insurers.

Keep a record of the improvements with photos and receipts. If your insurance company isn’t willing to restore your policy, having proof can help you get coverage from a new company.

Shop for new coverage

Shopping for a new homeowners insurance policy should be your top priority. Even if you have 30 or 60 days before your policy ends, you’ll want to start looking right away.

While you’re gathering quotes from the big-name insurers, look at your local insurance companies, too. Regional insurers often have a better handle on your area’s specific risks and might be more willing to work with you than a national company.

If you’re not getting anywhere with traditional insurers, your state-run insurance pool is a good alternative. The premiums might be higher, but it’s designed exactly for situations like yours — and it’s better than leaving your biggest investment unprotected.

Learn More: 7 Ways to Lower Your Home Insurance Costs

Learn More: 7 Ways to Lower Your Home Insurance Costs

Legal rights and resources for policyholders

Insurance companies can’t just void your policy on a whim. You have protections as a policyholder. If you think your cancellation isn’t fair, or you’re struggling to find new coverage, your first stop should be your state insurance department. They can explain your rights and help you file a complaint if needed.

Next, consider a public adjuster. Public adjusters are experts at reviewing claims and documentation, and they might spot issues your insurance company overlooked. Just keep in mind that they typically charge a percentage of any claim settlement.[1]

If things get dicey — for instance, if you believe your insurance company isn’t following state laws or you’re facing a mortgage issue because of a lapse in coverage — you may want to consult a lawyer who specializes in insurance law. Many offer free consultations to review these cases.

Common reasons for homeowners insurance cancellation

Understanding why insurance companies might drop a policyholder’s coverage can help you avoid a cancellation — or at least see it coming before it hits your mailbox.

The following are the most common reasons your policy might end:

  • Non-payment of premiums: Missing payments can put your policy at risk. Most companies give you a grace period to catch up on unpaid premiums, but consider setting up automatic payments if you can. It’s one less thing to worry about.[2]

  • High claim frequency: Filing multiple claims in a short period, even small ones, can lead insurers to cut off coverage. Some companies get nervous after just two claims, especially if they aren’t related to weather damage.[3]

  • Risky property conditions: A sagging roof or dead tree limbs hanging over your house are red flags for insurers. Companies regularly review properties and may stop coverage if they spot issues that could lead to claims.

  • Fraud or misrepresentation: Not being honest on your insurance application is grounds for immediate cancellation. Make sure to disclose outdated wiring or your home business, if you have one.

  • Failure to follow underwriting guidelines: Each insurance company has specific rules about things like pets, home businesses, and property use. Getting a restricted dog breed or starting an Airbnb without notifying your insurer could void your coverage.

  • Increased regional risks: Insurance companies are pulling out of entire areas as climate change increases natural disaster risks. From California’s wildfire zones to Florida’s hurricane-prone coastal areas, regional risks are becoming a major cause of homeowners insurance cancellations.

The cancellation process

Your homeowners insurance company can’t leave you high and dry without warning. It has to follow specific rules before withdrawing coverage. 

The process varies by state, but it typically starts with your insurer sending you an official notice in the mail. It must explain the specific reason for termination and when your current policy will end.

The timeline for cancellation depends on the situation. If you have failed to make a payment, you might only get 10 days’ notice. But most states require insurers to give you at least 30 days’ notice if they’re canceling your policy because you made too many claims or pose an increased risk. Some states, like California, can require 75 days or more.[4]

Find Cheap Home Insurance Near You

Check quotes from 100+ top insurance companies

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Consequences of homeowners insurance cancellation

A homeowners insurance cancellation creates ripple effects that can disrupt your life and finances. Here’s a look at what you might face and why acting quickly is so important.

  • illustration card https://a.storyblok.com/f/162273/150x150/8329623678/money-96x96-blue_025-online-money.svg

    Financial impact

    Your wallet feels the impact right away. When you’re shopping for new coverage, expect to pay more for a new policy — maybe a lot more. Insurance companies view a policy cancellation as a sign of trouble, which can mean a substantial increase in premiums. Your rates could double, or even triple, if you end up needing high-risk insurance or have to use your state’s insurance pool.

  • illustration card https://a.storyblok.com/f/162273/150x150/1daf58783c/contact-us-96x96-orange_023-customer-support.svg

    Difficulty obtaining new insurance

    Dropped coverage on your record makes finding a new insurance company a challenge. Insurers share information, and if you have a cancellation on your record, it will follow you. You might need to apply with several companies before finding one willing to cover you.

  • illustration card https://a.storyblok.com/f/162273/x/94dcf3f967/lender-requirement.svg

    Home loan implications

    A lapse in your homeowners insurance can cause problems with your mortgage lender. If you can’t find new insurance quickly, your lender might institute force-placed insurance on your home and add the cost to your mortgage payment. A forced-placed policy can cost a lot more and offers less protection.

How to prevent homeowners insurance cancellation

No one wants to deal with their home insurance getting canceled. Here are key strategies to keep your coverage secure:

  • Regularly pay your premiums. Set up automatic payments if you can. If that’s not an option, put the due dates on your calendar and keep a buffer in your checking account to cover the premium. Most insurers offer a grace period, but you shouldn’t make a habit of cutting it close.

  • Maintain your property. Fix small issues before they become big problems. Replace an aging roof before it starts leaking, trim trees to keep them away from your house, and update old electrical systems. Track your home maintenance with photos and receipts as proof in case you need to defend your property’s condition.

  • Limit your claims. Save insurance claims for bigger issues. Consider handling smaller repairs yourself if the cost is close to your deductible. Multiple small claims can look worse than one large claim.

  • Be honest on your application. Disclose everything — your home business, new dog, or the rental unit in your basement. Being up-front might cost you more money, but it’s better than losing coverage when the truth comes out.

  • Follow your insurance company’s guidelines. Read the policy updates your insurer sends you. If you’re planning changes to your property or how you use it, check with your insurance agent. This includes things like adding a pool, starting an Airbnb, or installing a wood-burning stove.

Find Affordable Home Insurance

Unlock savings and discounts when you compare quotes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Homeowners insurance cancellation FAQs

Home insurance cancellation can come with a lot of questions. Here are answers to the most common questions homeowners have.

  • What are the common reasons for homeowners insurance cancellation?

    Some of the most common reasons for a homeowners insurance cancellation include missed payments, excessive claims, and poor property maintenance. Recently, severe weather from natural disasters, wildfire zones, and hurricane-prone regions have all caused insurers to not renew policies.

  • How can you avoid having your homeowners insurance canceled?

    You may be able to prevent homeowners policy cancellation by staying on top of payments, keeping your home in good condition with proper maintenance, and thinking carefully before filing small claims. Document property improvements, be up-front about changes in how you use your home, and read insurance policy updates.

  • What should you do if your insurer cancels your homeowners insurance?

    If you have a home insurance cancellation notice in hand, read it carefully to understand why. Call your insurer to ask if you can reverse the cancellation. If not, begin your search for new coverage immediately. Look into local insurers and your state’s insurance pool if national companies turn you down.

  • Can you get homeowners insurance from another company after cancellation?

    Yes, though you’ll need to work harder to find coverage after a company terminates your policy. Regional insurers, high-risk specialists, and your state’s insurance pool often write policies for these situations. Prepare to pay more and possibly upgrade your property to qualify, depending on why you lost coverage.

  • Does a canceled homeowners insurance policy affect your mortgage?

    It definitely could. Your mortgage lender requires you to maintain insurance coverage. If you don’t replace the canceled coverage with a new policy, your mortgage company will likely buy expensive force-placed insurance or could declare you in default of your mortgage terms.

Sources

  1. Texas Department of Insurance. "Public adjusters: What to know before you hire one to help with your claim."
  2. Wisconsin Office of the Commissioner of Insurance. "Fact Sheet on Insurance Terminations, Denials, and Cancellations."
  3. The Charolette Observer. "Car insurance company deny coverage for filing too many claims?."
  4. Texas Department of Insurance. "Was your home insurance canceled or not renewed?."
Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Amy has been a contributor at Insurify since September 2023.

Chris Schafer
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo

Compare Home Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Latest Articles

View all