Updated: May 13, 2025
Advertising & Editorial Disclosure
If you're not eligible for traditional homeowners insurance after your policy was dropped, you can get a FAIR Plan through your state's insurance department or a designated association.
Home insurance policies can be canceled for various reasons, such as nonpayment of premiums, increased risk factors or even filing too many claims.
Proactive and regular maintenance and transparency with insurance providers can prevent policy cancellations
If your homeowners insurance policy has been dropped or not renewed, you can seek new coverage after addressing the reasons for cancellation. Facing a home insurance cancellation or non-renewal can be challenging, but it also provides a chance to explore new insurance options and rectify any issues that contributed to the termination of your previous policy.
Below are some steps you can take to get a new policy after cancellation.
Your homeowners insurance was canceled for a reason, including missed payments, misrepresentation during the application process, changes in risk factors associated with your property or even filing too many claims. Knowing the exact reason helps address any issues and prevent similar problems in the future.
Contact your previous insurer to discuss the situation before looking for a new home insurance policy. Sometimes, the issues leading to policy cancellation can be resolved, allowing for the possibility of reinstating your policy.
Request a Comprehensive Loss Underwriting Exchange (CLUE) report so insurance firms can evaluate your risk profile. This report includes a thorough history of your prior insurance claims and any questions you may have had about your coverage. You can correct any errors and offer accurate information when applying for new insurance.
If reinstatement is not possible or you choose to find a new insurer, compare homeowners insurance quotes from multiple insurance providers to find the coverage that suits your requirements and budget.
When applying for new homeowners insurance, ensure that you provide accurate and complete information to the insurance company. Transparency is key to securing coverage and withholding or misrepresenting information could lead to future complications.
Use our home insurance calculator to find the best provider for your needs.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jun 06, 2025
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Depending on your situation, some providers may choose not to offer coverage — if this happens, you can turn to a Fair Access to Insurance Requirements (FAIR) Plan as a last resort.
A FAIR Plan offers a lifeline to high-risk homeowners seeking insurance that is not being accepted by traditional providers. It’s meant for individuals who often find themselves ineligible for standard home insurance due to living in high-risk areas or other red flags that concern typical insurers.
FAIR Plans, which are run at the state level and subsidized by taxpayers and private insurance companies, differ from traditional insurers. They operate as shared market plans, spreading risk across multiple insurers.
But coverage through a FAIR Plan is typically limited. It often provides only dwelling and personal property coverage on a named perils basis, with options for liability, medical payments or loss of use coverage being limited or unavailable.
You can obtain a FAIR Plan through your state's insurance department or a designated FAIR Plan association within your state. Each state that offers FAIR Plans has its association or organization responsible for administering the program.
You should consider getting the FAIR Plan if you cannot secure traditional homeowners insurance coverage through private insurance companies due to high-risk factors, such as living in an area prone to natural disasters or owning a property with significant issues.
The FAIR Plan is designed to provide a last-resort option for homeowners facing difficulties in obtaining standard insurance coverage. When all other avenues for homeowners insurance have been exhausted, this serves as a safety net, allowing you to protect your home despite the challenges.
Your homeowners insurance could get canceled or dropped for myriad reasons, such as neglecting to pay on time, owning a home with high-risk features, or misrepresenting the state of your home. Be aware of these potential factors to proactively address any issues and ensure the protection of your home. Here, we've categorized these reasons into different areas for clarity:
Issue | Description |
|---|---|
Maintenance Neglect | Failing to address essential home maintenance and repairs can lead to insurance cancellation. Insurance companies may consider your home a higher risk if it's not adequately maintained, increasing the likelihood of claims. |
High-Risk Features | Certain features, like a deteriorating roof, outdated electrical systems or a wood-burning stove, can make your home riskier to insure. Insurance companies may drop coverage if these features pose safety concerns. |
High-Risk Location | If your home is in an area prone to natural disasters such as hurricanes, earthquakes or wildfires, insurance companies may cancel coverage due to the increased risk associated with these regions. |
Issue | Description |
|---|---|
Missed Premium Payments | Consistently missing premium payments can result in your insurance being canceled. Timely payment maintains coverage and helps you avoid interruptions in your protection. |
Non-Disclosure of Claims | Failing to disclose previous claims when applying for coverage or not reporting claims promptly can lead to policy cancellation. |
Fraud or Misrepresentation | Providing false information on your insurance application or engaging in fraudulent activities related to claims can result in immediate policy cancellation. |
Excessive Claims | Frequent and excessive claims, particularly for preventable or suspicious incidents, may lead to non-renewal or cancellation. |
Address these issues proactively to maintain your homeowners insurance coverage. Regular home maintenance, timely premium payments, honesty in your applications and responsible claims management can help you avoid the inconvenience of insurance cancellation or non-renewal.
Homeowners insurance policies come with regulations regarding cancellation, but these rules can vary significantly from one state to another.
Although insurance providers are generally required to inform policyholders about policy cancellations, the specific processes and timelines can differ based on state regulations. This notice typically includes the reason for cancellation and the effective termination date. But the length of the notice period and the acceptable reasons for cancellation can vary depending on state laws.
In New York, for instance, an insurance provider typically has the authority to terminate your homeowners policy within the initial 60 days of its inception, provided that the cancellation notice clearly articulates the precise rationale or factors behind the cancellation.
In Idaho, the notice period before the cancellation takes effect varies based on the reason for cancellation. An insurance provider is required to send a written notice to the policyholder, specifying the effective date and reasons for the cancellation or non-renewal of a homeowners policy.
To ensure you fully understand your state's home insurance cancellation laws and how they apply to your situation, contact your state's Department of Insurance. They can provide detailed information on policy cancellations, notice requirements and your rights as a homeowner.
Preventing your home insurance from being dropped is often much easier than trying to secure a new policy after cancellation. By proactively addressing potential issues, you can maintain the coverage you need to protect your home and assets. Here are some key tips to help you prevent your home insurance from being dropped:
Keep your home in good condition by addressing maintenance issues promptly. Regularly inspect and maintain critical components like your roof, electrical system, plumbing and heating/cooling systems.
Ensure you pay your insurance premiums on time and in full. Late or missed payments can lead to policy cancellation, so stay current with your financial obligations.
Be honest and transparent when applying for insurance and filing claims. Providing accurate information and promptly reporting incidents helps maintain trust with your insurer.
Although you must report valid claims, be mindful of the frequency and nature of claims. Frequent and preventable claims can increase the risk of policy cancellation.
Implement safety measures to reduce the risk of accidents and losses. This includes installing smoke detectors and security systems and taking steps to prevent common home hazards.
Regularly review and update your insurance policy to ensure it adequately reflects your home's value and your coverage needs. Changes in your home's value or personal circumstances may require adjustments to your policy.
By following these proactive steps, you can significantly reduce the likelihood of your home insurance being dropped and ensure ongoing protection for your home and belongings.
If your homeowners insurance policy is not renewed or has been canceled, you can still shop around for a new one. In this guide, we explored steps you can take to get coverage.
Before purchasing a policy, you must understand and address the reasons behind the cancellation. Insurers may decline your application if they identify the same concerns that led to the cancellation of your previous policy.
By resolving any issues that contributed to your policy's nonrenewal, you can improve your chances of obtaining new coverage and position yourself as a responsible homeowner in the eyes of potential insurers.
Having an insurance policy canceled can be frustrating and challenging, especially when you need to get new homeowners insurance. We answered some common questions to help you weigh your options in this situation.
Yes, an insurance company can refuse to renew your homeowners insurance policy. Providers have the discretion to decide whether they want to continue insuring your property when your policy term expires.
A homeowners insurance company may drop a policyholder for various reasons, including missed payments, having high-risk features such as deteriorating roofs or outdated electrical systems, frequent or unnecessary claims, misrepresentation or fraud and geographic challenges, among other factors. Address these issues proactively to maintain homeowners insurance.
Given that most lenders require you to get insurance, your mortgage could be affected if your homeowners insurance is canceled. Non-compliance can lead to your lender imposing fines or, depending on your loan agreement, demanding full repayment of the mortgage.
If you can’t get homeowners insurance because of your claims history then there are some options. For instance, you can shop for a new provider, work with an insurance agent or even consider a Fair Access to Insurance Requirements (FAIR) plan.
Why Trust MoneyGeek?
MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. By considering different locations and companies, we aim to give a reliable estimate of what homeowners can expect to pay, showing why it’s important to compare rates.
Methodology
MoneyGeek evaluated homeowners insurance carriers incorporating insights and premiums from the official databases of Quadrant Information Services.
Homeowner Profile
For our analysis, we created a sample homeowner profile with the following characteristics:
Homeowners Insurance Coverage Details
Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
