I Have Been Sent a Letter that Says “Nonrenewal” – What Does This Mean?
As a homeowner, you have a duty to understand your policy terms to the fullest so that you can make informed decisions regarding your coverage. One area of confusion that proves to arise for many homeowners is the nonrenewal clause. Nonrenewal means that your insurance company is not going to renew your homeowners’ insurance policy once it expires. We want you to remain an informed homeowner, which is why we have gathered all the must-know information for policies with a nonrenewal clause:
- If your policy has a nonrenewal clause, you will receive a written notice about your expiring policy at least 30 days before it expires. If you do not receive this notice in time, the insurance carrier is required to renew your policy at your request.
- Insurance companies choose to implement nonrenewal policies for a variety of reasons, including properties in poor condition. To combat this issue, you may be able to offer to make repairs so that you can renew your policy. If approved, you will have anywhere from six months to a year to complete the repairs. The only time your insurance company will be responsible for the expenses associated with the repairs is if a covered loss occurs.
- You may also receive a nonrenewal clause if you file three or more non-weather related claims within a time frame of three years. However, if you do not receive a notice after your second claim, the insurance company cannot implement a nonrenewal clause due to a third claim. It is important to note that you can be charged a surcharge if you file two or more non-weather related claims in the most recent policy year.
- It is important to note that if you leave your home vacant for sixty or more days, your policy will likely stop providing you with coverage automatically. Doing this will also give the insurance company incentive for implementing a nonrenewal clause.