When Can Your Homowners Insurance Be Dropped?

When can your insurer drop your Parkland or South Florida home policy?

After Hurricane Wilma, many Parkland and South Florida homeowners were dropped by their insurance companies.  Homeowner’s insurance is a major factor when purchasing a home.  As a result, it is important to know your rights. It’s imperative for Parkland and South Florida homebuyers to understand all of their options when purchasing homeowners insurance.  As a result, we will continue to update the Parkland public with changes in policies and other related homeowner’s insurance issues.

Know These Facts: Your insurance company cannot drop your policy just because you filed a single water damage claim or a claim resulting from a hurricane or major storm.  An insurance company can only cancel if the policyholder neglected to take actions that the insurer requested to prevent similar damage from occurring again. Your insurance can also be canceled when it is up for renewal or within the 90 days after the policy takes affect.

Your homeowner’s insurance can also be canceled after 90 days if:

1. The policyholder lied about something material such as the age of the property or did not comply with underwriting requirements.
2. The risk covered by the policy experienced a substantial change (This substantial risk must be for all policyholders that have the same insurance, not just you!)
3. The Office of Insurance Regulation finds that early cancellation of some or all of the insurer’s policies is necessary to protect the best interests of the public or policyholders.  For example, if there is a lack of adequate catastrophe backup coverage or if the insurer’s financial condition changes, insurance companies can cancel the policies but must give 45 days notice to policyholders.  (Click Here to read more about the recent policy changes for homeowner’s insurance)
4. The insurance company covers both your home and car and gives you at least 90 days notice.

If you have any questions or concerns about your current homeowner’s insurance policy, I recommend that you give Stacy Kagan with Allstate Insurance a call at: 954-341-1362.  Many of my clients have been extremely satisfied with her services.  Her staff will take the time to explain all of your options in order to provide you the best coverage for your home.

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Know the neighborhood. Know the value. Know your hometown agents: The Parkland Parrot Real Estate Team. If you are interested in buying or selling in Parkland or South Florida and are looking for experienced local Realtors, please do not hesitate to contact the Squawk at: 954-609-0591 or send us a message here.