Homeowners Insurance after Cancellation or Non-Renewal
Solution for High Risk Homes
It’s the middle of the night during a thunderstorm in May and all of a sudden, the power goes out. You think nothing of it until the next morning when you realize the sump pump didn’t keep water out of the basement. No big deal, you have homeowner’s insurance that replaces the carpet and you’re good to go.
A month later a hail storm hits the area and once again, your homeowner’s policy pays to replace the damaged shingles and siding.
If it couldn’t get any worse, the big tree in your backyard loses a limb and it lands on your fence, crushing a portion of it that now requires repair. Once again, your homeowner’s policy saves the day, pays for the damage, and all is good. That is until the non-renewal notice arrives in your mailbox…
Now what? Well, you call around and no one wants to insure you. Why would they, you are high-risk, practically a danger to society with all of your insurance claims. The only option, the FAIR plan. Fair Access to Insurance Requirements was designed to provide insurance for those who could not find coverage through the standard markets. In Michigan it is the Michigan Basic Property Insurance Association (MBPIA) and is a not-for-profit organization that is funded by the insurance companies who operate in the state.
Typically, a high-risk policy from MBPIA is higher priced than your previous policy, but it is only necessary until enough time has passed that you are eligible with a standard company. Companies can vary, but usually they look at a rolling 3-5 years for claims history. Before you know it, you’re back on the easy street with a “normal” homeowner’s policy.
While the scenario above may sound extreme, we see a handful of these situations every year. It is frustrating, and more often than not there is a wish that the smaller claims weren’t filed, but in the end, there is a solution as we can find coverage for your home now and after the storm has passed.
Common Reason for Non-Renewal or Cancellation
- Liability: Property Hazards
- Claims History: Frequent claims
- Eligibility: Condition of Roof, Electrical, Trees. Have a Pool, Trampoline, Wood Stove
- Pet Risk: Dangerous Breed, Dog Bite History
- Insurance Company: Current company not offering insurance in area/state anymore
- Non-Payment: Frequent missing premium payments
- Vacant Home: No active occupants at the property
- Location: High risk area
What should you do next?
Give our agency a call!
We can help you navigate this situation! We will review your current policy and reasons for non-renewal or cancellation. Then, find a suitable insurance company for your risk and the protection of your home. We can assist you in this difficult state and find a solution for your home insurance. After some time has passed or repairs have been handled, if necessary, we can rewrite your policy to another insurer and continue your coverage similarly to before these issues occurred.