Many people have recently experienced a nonrenewal of their home insurance due to issues outside of their control. But what happens when insurance coverage lapses and something happens to your home? Do you have any recourse?
How Could You End Up Without Insurance?
Insurance companies frequently decide not to renew insurance policies after large claims. Often these claims are not the fault of the owner at all. A homeowner could lose their home in a natural disaster, and this would still give them a high risk rating in the eyes of insurance companies. Insurance companies have a tendency to cancel the policies of homeowners that cost them money.
Consequently, people often find themselves without homeowner’s insurance after they have put in a large claim. And there are, of course, other ways you could end up without insurance; for example, you could have a gap in coverage or forget to pay your bill.
What If Something Happens to Your Home?
If something happens to your home, you still have some recourse. If the issue was someone else’s fault, you can follow up with their insurance company instead. Alternatively, you may be able to pursue them in court.
Here’s an example of how that scenario might play out. Consider a tree falling on your property. If your neighbor’s tree fell on your roof, for instance, you should be able to procure payment from them. But that’s a costly and time-consuming process. For those with insurance, the insurance company will generally pay for the damages and then will pursue the neighbor separately.
If someone refuses to pay for damage that they caused, the case will almost always end up in civil court. There you’ll need to show that the damage was caused by them, either intentionally or negligently, and how much it cost.
What If No One Else Is at Fault?
But what if no one else is at fault for your home being damaged? An earthquake, flood, or fire could easily damage your home without anyone specific being at fault. If you’re in this type of situation, here’s what you should know.
It’s possible that the damage was made worse by someone else; for instance, earthquake damage was worse because a contractor did not do the appropriate job when building the home. But these types of cases do require an experienced professional to determine whether someone could potentially be at fault.
That doesn’t mean that an individual is entirely without help, however. Government agencies and nonprofit agencies do help those who are without insurance. They understand that some people may simply not be able to afford it. Other homeowners may find that they weren’t covered for what they thought they were; for instance, they may not have had flood coverage, which doesn’t come with most insurance policies.
How Can You Get Coverage?
It’s easy to see that getting coverage, if possible, is ideal. But because you may have had high claims in the past, getting coverage could actually be difficult to do. Alternatively, you may be able to buy insurance but at a very high rate that isn’t feasible for your personal budget.
In order to get coverage in this situation, you could work with an insurance broker or get a large number of quotes. In doing so, you’ll be able to find the lowest possible premium and be able to find companies willing to give you coverage. Over time, your premium rates should go down as long as you don’t file any more claims.
It can be frustrating to try to get insurance after a nonrenewal, but it’s more than possible. You simply need to be determined. For more information, contact the Metropolitan Insurance Service Consultants today.