If you own a home, then you need to obtain and maintain your homeowners insurance throughout the life of your home loan. However, sometimes the insurance company will refuse to renew your policy and you will be put in the tough situation of finding new coverage before your policy lapses. Here is more information about policy non-renewal and steps you can take to either get reinstated or find new insurance.

What Is the Difference Between Non-Renewal and Cancellation?

Cancellation and policy non-renewal are two distinct things. Cancellation is much more serious and may result in higher difficulty when you try to find new coverage. Non-renewal can cause difficulties depending on the reasons why your policy was not renewed. However, you may still be able to get a new policy for a similar price in this case. Here are some more key differences between the two types of dropped coverage.


Insurance companies cannot cancel your insurance if your policy has been in force longer than a certain length of time, except for specific reasons. In most cases, policies are canceled as a result of something you did or failed to do. For example, your policy may be canceled if you didn’t pay your premiums or you lied about a material fact on your application.


Generally, non-renewals happen at the natural end of your policy’s term for any reason. Most non-renewals are a result of a business decision by the insurance company. You may or may not have done anything to cause the company to drop you.

What Are Common Reasons for Non-Renewal?

Non-renewals are almost always a way for an insurance company to save money, cut losses, or change their business direction. Here are some reasons why your insurance company may not renew your homeowners insurance policy.

  • Your Coverage Is No Longer Offered in Your Area: The insurance company may no longer offer the type of coverage you currently have.
  • Your Insurance Company is Changing Their Focus: Sometimes, insurance companies may want to change their focus from homeowners insurance to other types of insurance, like car insurance.
  • Your Home Is in a High-Risk Area: For example, if you live in a hurricane-prone area that floods heavily, then your insurance company may drop you to reduce their risks.
  • Your Claims Were Excessive: Even though you have insurance to cover your losses, if you file too often or more than the average consumer, then the company may consider you to be high risk.
  • Your Pet Is Dangerous or High Risk: Some insurance companies will not insure homeowners who own certain dog breeds or exotic pets.
  • Your Property is Deteriorating: If you fail to keep your property in good condition, then the insurance company may drop your coverage if you fail to make certain repairs.

In some cases, you may be able to dispute your non-renewal and have your policy reinstated. For example, if you were dropped because your property needs repairs, then making those repairs may help you get reinstated.

How Can You Obtain a New Homeowners Policy?

If you cannot or do not want to be reinstated with your old homeowners insurance policy, then you need to shop for new insurance as soon as you get your non-renewal notice. If you were dropped for no fault of your own, then you should be able to obtain new coverage fairly easily. However, if you were dropped for too many claims, because of your pet, or for failing to make repairs, then you may need to work diligently to convince the new company that you are no longer a risk.

If your homeowners insurance company gave you a non-renewal notice and you are shopping for new coverage, then contact Metropolitan Insurance Service Consultants, Inc to help you through the process. We can go over the reasons for your non-renewal and help you get new homeowners insurance so that you don’t experience any lapses in policy.