Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There are a number of circumstances when an insurance company can and will cancel a homeowner’s policy. The company can cancel if you have committed fraud. The company can cancel if the agent exceeded his or her authority. The company can cancel if the premium was not received by the due date. State law dictates the amount of notice the company must give you.
The company may choose to “non-renew” a policy when the circumstances of the risk have changed. In such a case the policy runs its full term but there would not be an offer to renew and the coverage would cease.
Non-renewals are more common that cancels in my opinion. The difference is that basically they will keep the policy until the renewal, then not continue coverage beyond that. If you have been non-renewed, it is a good idea to start talking to insurance agents right away, as, depending on why you are being non-renewed (they should give you a reason) it may take some time to find an insurance company that is willing to accept you. Make sure to tell the agents you are talking to that you have been non-renewed by your current insurance and why. It is important info so that they can get you accurate quotes.
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The company may choose to “non-renew” a policy when the circumstances of the risk have changed. In such a case the policy runs its full term but there would not be an offer to renew and the coverage would cease.