A home insurance company can drop you for neglecting to pay on time, filing too many claims and more. A few common reasons include:
Home Insurance
How to Get Homeowners Insurance After Being Dropped
Updated: August 11, 2025
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Key Takeaways
Being dropped by home insurance means not being renewed when your term ends or having your policy canceled.
A FAIR Plan serves as a last resort if you can’t find traditional home insurance. It provides limited coverage, but can be purchased through your state's insurance department or a designated association.
Your home insurance may drop you if you haven’t paid your premiums, file too many claims, or have increased risk factors.
Why Home Insurance Policies Get Dropped
You 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.
You Have Excessive Claims
Frequent and excessive claims, particularly for preventable or suspicious incidents, may lead to non-renewal or cancellation.
You Have Not Disclosed Previous Claims
Failing to disclose previous claims when applying for coverage or not reporting claims promptly can lead to policy cancellation.
You Provided False Information
Providing false information on your insurance application or engaging in fraudulent activities related to claims can result in immediate policy cancellation.
You Live in A 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.
You Have High-Risk Features
If your home has high-risk features, such as a deteriorating roof or outdated electrical system, insurance companies may drop coverage. Insurance companies may consider your home a higher risk if it's not adequately maintained, as it increases the likelihood of claims.
HOME INSURANCE CANCELLATION VS. NON-RENEWAL
- A cancelled home insurance policy occurs before your term ends, caused by issues like fraud or failure to make payments.
- A nonrenewal refers to when your insurance provider decides not to extend your policy when it expires.
What to Do if You’re Dropped From Your Home Insurance
If your homeowners insurance policy has been dropped or not renewed, you can seek new coverage after addressing the reasons for cancellation. Here’s are your options if you’re dropped from your home insurance:
- 1
Resolve the Issue & Appeal for Reinstatement
Contact your previous insurer to discuss the exact reason why you were dropped. If the issue that led to you being dropped can be resolved, such as nonpayment, you may be able to reinstate or renew your policy.
- 2
Shop Around 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. Prior to purchasing a new policy, make sure to resolve the cause for nonrenewal or cancellation if possible.
- 3
Purchase a FAIR Plan
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 an alternative to home insurance. A FAIR Plan offers limited coverage, only providing 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.
REQUEST A CLUE REPORT
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.
Home Insurance Cancellation Laws by State
Insurers are generally required to inform policyholders about cancellations, but the specific processes, length of the notice period and the acceptable reasons for cancellation can differ based on state regulations.
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.
Alabama | Department of Insurance |
Alaska | Department of Community and Economic Development, Division of Insurance |
Arizona | Department of Insurance & Financial Institutions |
Arkansas | Department of Insurance |
California | Department of Insurance |
Colorado | Department of Regulatory Agencies, Division of Insurance |
Connecticut | Department of Insurance |
Delaware | Department of Insurance |
District of Columbia | Department of Insurance, Securities and Banking |
Florida | Office of Insurance Regulation |
Georgia | Insurance and Fire Safety |
Hawaii | Department of Commerce and Consumer Affairs, Insurance Division |
Idaho | Idaho Department of Insurance |
Illinois | Illinois Department of Insurance |
Indiana | Department of Insurance |
Iowa | Division of Insurance |
Kansas | Department of Insurance |
Kentucky | Kentucky Department of Insurance |
Louisiana | Department of Insurance |
Maine | Bureau of Insurance |
Maryland | Maryland Insurance Administration |
Massachusetts | Division of Insurance |
Michigan | Michigan Department of Insurance and Financial Services |
Minnesota | Department of Commerce |
Mississippi | Department of Insurance |
Missouri | Missouri Department of Insurance |
Montana | Montana Insurance Department |
Nebraska | Nebraska Department of Insurance |
Nevada | Nevada Division of Insurance |
New Hampshire | New Hampshire Insurance Department |
New Jersey | New Jersey Department of Banking and Insurance |
New Mexico | New Mexico Office of Superintendent of Insurance |
New York | New York State Department of Financial Services |
North Carolina | North Carolina Department of Insurance |
North Dakota | North Dakota Insurance Department |
Ohio | Ohio Department of Insurance |
Oklahoma | Oklahoma Insurance Department |
Oregon | Oregon Division of Financial Regulation |
Pennsylvania | Pennsylvania Insurance Department |
Rhode Island | State of Rhode Island, Department of Business Regulation |
South Carolina | South Carolina Department of Insurance |
South Dakota | South Dakota Division of Insurance |
Tennessee | TN Department of Commerce and Insurance |
Texas | Texas Department of Insurance |
Utah | Utah Department of Insurance |
Vermont | State of Vermont, Department of Financial Regulation |
Virginia | Bureau of Insurance Bureau of Insurance, 3rd Fl, 1300 E Main St, Richmond, VA 23219 |
Washington | Office of the Insurance Commissioner, Washington State |
West Virginia | West Virginia Offices of the Insurance Commissioner |
Wisconsin | Wisconsin Office of the Commissioner of Insurance |
Wyoming | Wyoming Department of Insurance |
Tips to Prevent Home Insurance from Being Dropped
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:
Regular Maintenance
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.
Timely Premium Payments
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.
Transparent Communication
Be honest and transparent when applying for insurance and filing claims. Providing accurate information and promptly reporting incidents helps maintain trust with your insurer.
Claims Management
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.
Risk Mitigation
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.
Reviewing and Updating
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.
How to Get Home Insurance After Being Dropped: Bottom Line
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.
Homeowners Insurance After Being Dropped: FAQ
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.
Can an insurer refuse to renew?
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.
Why would an insurance company drop you?
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.
What happens to your mortgage if your home insurance is canceled?
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.
What should you do if you can’t get homeowners insurance because of your claims history?
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.
Getting Home Insurance After Being Dropped: Our Methodology
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:
- Good credit score (769 to 792)
- Home constructed in 2000
- Wood-frame construction
- Composite shingle roof
Homeowners Insurance Coverage Details
Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:
- $250,000 in dwelling coverage
- $125,000 in personal property coverage
- $200,000 in personal liability coverage
- $1,000 deductible
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.
Home Insurance After Cancellation: Related Pages
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Mortgage
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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.
sources
- Idaho Department of Insurance. "Home Policy Cancellation." Accessed May 9, 2025.
- New York Department of Financial Services. "Cancellations and Non-Renewals." Accessed May 9, 2025.