Can Homeowners Insurance Drop You?

Homeowners insurance companies can cancel or choose not to renew your policy for several reasons, including missed payments, excessive claims, property risks or fraud. Insurers regularly evaluate risk and may drop your coverage if they determine it's no longer viable. You'll usually receive written notice, but a coverage gap leaves your home financially vulnerable during emergencies.

If your insurer drops your coverage, it’s often due to one of the following reasons:

Homeowners insurance can drop you after a claim if the insurer considers you a higher risk. The decision often hinges on the nature and frequency of claims. Insurers might cancel policies if they anticipate future claims that could affect their financial stability.

Here are some common reasons your insurer might decide to drop your coverage after a claim:

Homeowners insurance can end either through cancellation or non-renewal. While both mean your coverage is ending, the reasons and timelines are different. Use the table below to understand how they compare:

After being dropped by your provider, insurers view you as a higher risk, which can lead to higher premiums, fewer coverage options and stricter policy terms.

Yes, you can usually get a refund if your homeowners insurance is canceled before the end of the policy term. Most insurers will return the unused portion of your premium on a pro rata basis.

If you cancel the policy, some insurers may charge a short-rate fee, which slightly reduces your refund.

It won’t directly affect your credit score, since insurers don’t report cancellations to credit bureaus. But if you leave an unpaid balance, the insurer may send that debt to a collections agency, and collections can appear on your credit report, damaging your score. Always settle any remaining balance with your insurer, even if your policy is no longer active, to keep your credit score clean and home insurance affordable.

Contact your insurer to understand the reason for cancellation. The best home insurance providers will communicate the issue right away.

In some cases, like missed payments or maintenance issues, you may be able to appeal the decision or request reinstatement by resolving the problem and providing documentation.

Follow these steps to get new homeowners insurance after being dropped.

A Fair Access to Insurance Requirements (FAIR) Plan is an option if traditional homeowners insurance providers can't cover you.

FAIR Plans are state-run programs supported by taxpayers and commercial insurance carriers. They operate differently from traditional insurers, using shared market systems that spread risk among several companies.

These plans provide only basic protection, often limited to the dwelling and personal property on a named perils basis. You may have little or no coverage for liability, medical expenses or loss of use. Still, a FAIR Plan can offer essential protection when no other insurance options are available.

To avoid being dropped by your homeowners insurance provider, make timely premium payments, minimize claims and keep your property in good condition. Here are tips to help you maintain your home coverage:

To avoid being dropped by your homeowners insurance provider, make timely premium payments, minimize claims and keep your property in good condition. Here are tips to help you maintain your home coverage:

Homeowners insurance companies can cancel or not renew your policy for reasons like missed payments, frequent claims or changes in risk. If this happens, act quickly — address the issue, compare new quotes and secure coverage to protect your home and finances.

To help you understand and manage homeowners insurance cancellation, we've compiled a list of frequently asked questions.

Understanding what homeowners actually pay for insurance helps you budget accurately and recognize whether quotes you receive fall within normal ranges or represent overpricing. We built this analysis to show you what typical coverage costs across different locations and providers, plus what you'll pay for high-value home protection if you need coverage beyond standard limits.

We analyzed quotes from multiple insurance providers across the U.S. using profiles that reflect both average homeowners and those with expensive properties requiring enhanced coverage. By considering different locations and companies, we provide reliable estimates of what you can expect to pay based on your home's value and coverage needs.

We created a sample homeowner profile with a good credit score (769-792), a home constructed in 2000, wood-frame construction, and a composite shingle roof. This represents typical homeowner characteristics that insurers use as baseline risk factors when calculating premiums.

Unless otherwise specified, we collected quotes using $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in personal liability coverage, and a $1,000 deductible. These coverage limits reflect what most homeowners need to adequately protect their property and assets.

We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, increasing limits to $1 million in dwelling coverage, $500,000 in personal property coverage, and $1 million in liability coverage. High-value homes require different underwriting approaches and often need specialty insurers willing to write policies beyond standard carrier limits.

This methodology provides you with realistic cost expectations for both standard and high-value homes. Understanding typical costs across coverage tiers helps you evaluate whether the quotes you receive are competitive and whether your current coverage adequately protects your home's replacement cost and your personal assets from liability claims.