If a homeowner is facing a cancellation or a non-renewal on a home insurance policy, then a homeowner may be facing some financial challenges. If a homeowner is not paying a mortgage and owns the home outright, then this is not as big an issue. Most financial institutions and banks insist that homeowners have home insurance while paying a mortgage. A homeowner could face foreclosure if the home insurance terms and conditions that were agreed upon when financing was secured are not being kept. There is a difference between cancellation and non-renewal, however, and the differences can be important.

If a homeowner is facing cancellation of a home insurance in Texas, or in most other states, then a homeowner will experience a harder time getting a good home insurance rate though another company. One of the main reasons homeowners face cancellation is because they have not kept up-to-date with the premiums. Homeowners must pay the monthly installments on time, or risk losing the home insurance policy. The home insurance policy carrier may not want to keep a homeowner covered under the policy if payments are behind. A cancellation can also happen if a homeowner misrepresents a property claim.

Non-renewal can only come at the end of a homeowner’s insurance policy. There are many reasons why companies will not renew, and one of the main reasons is that the particular homeowner has become too big of a financial risk. A agency that has written and provided a home insurance policy for a homeowner and intends not to renew the home insurance policy, then the agency must notify the homeowner at least 30 days before the end of the policy. Reasons for non-renewal: not maintaining the property or a homeowner has made more than three claims on the home insurance policy within three years.

If a homeowner receives notice of cancellation or non-renewal, then a homeowner has the right to file a claim to reverse the decision. A homeowner has fifteen days from the date of notice to do so. Homeowners need to make sure that the procedures are to fling a claim. If homeowners feel as though there is discrimination is involved in the decision of non-renewal or cancellation of the home insurance policy, then the homeowner should contact the Attorney General Office in Texas.

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