They certainly can! Of course an insurance company is in business to make money, just like any other business. They will review your policy every year at the renewal to determine if they want to continue to offer coverage at the same price, at a higher or lower price, or at all. If you look like you will be a long term profitable customer over time they will certainly continue coverage (the price might go up), but if you look to be a non-profitable customer over time, they will cancel your policy. Each Insurance company has a different profile they look at before offering renewal.
Some things you can do to help if you are worried about being cancelled are:
1. Don't file small claims. Insurance is meant to be for catastrophic losses.
2. Carry a high deductible. Again, Insurance is meant for catastrophic losses.
3. Insure your Auto, Home and Life with the same company. The more policies they have with you, the greater the chance that you will be a profitable customer to them over time.
4. Keep a well maintained home. Insurance companies know that detail oriented owners who take care of their property are less likely to have claims, and when they do those claims will be smaller.
5. Work with your agent to get his advice!
If I can be of any help email me at dbeukel1@amfam.com .
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A company can cancel a property policy any time that the premium isn’t paid. Cancelling an insurance policy is not easy. If you can still live in the house, the company will more than likely maintain the coverage. If the damage uncovers a condition that the insurance company did not know about, they might consider cancelling coverage. If they cancel coverage, they must provide you with adequate notice so you can secure coverage elsewhere.
Manager, Marindependent Insurance Services LLC, California
I agree with David, an Insurance company can drop you anytime the premium is not paid.
In most US States, the insurance company can choose to non renew your home insurance, but they are required (state dependent) to give you lots of notice of this though. They can also choose, instead, to just raise your rates.
As a general rule of thumb, it does not make sense to make small home insurance claims.
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Some things you can do to help if you are worried about being cancelled are:
1. Don't file small claims. Insurance is meant to be for catastrophic losses.
2. Carry a high deductible. Again, Insurance is meant for catastrophic losses.
3. Insure your Auto, Home and Life with the same company. The more policies they have with you, the greater the chance that you will be a profitable customer to them over time.
4. Keep a well maintained home. Insurance companies know that detail oriented owners who take care of their property are less likely to have claims, and when they do those claims will be smaller.
5. Work with your agent to get his advice!
If I can be of any help email me at dbeukel1@amfam.com .
In most US States, the insurance company can choose to non renew your home insurance, but they are required (state dependent) to give you lots of notice of this though. They can also choose, instead, to just raise your rates.
As a general rule of thumb, it does not make sense to make small home insurance claims.