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What to do if you are dropped from your home insurance

Natalie Todoroff Mariah Posey
Written by
Natalie Todoroff,
Edited by
Mariah Posey
Published on February 21, 2025 | 7 min read

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Distressed homeowner looking at their finances.
Pheelings Media/Getty Images

Key takeaways

  • Home insurance carriers may cancel or refuse to renew policies under some circumstances.
  • States have different laws and rules regulating how and when homeowners insurance companies can drop you.
  • If you are unable to get home insurance through a private insurer, you may be eligible for a policy through your state’s FAIR plan.

Dealing with a dropped or nonrenewed home insurance policy can be a headache, but you aren’t alone. Insurance rates and availability have been on somewhat of a rollercoaster in recent years, with prices rising and availability declining. Coastal states like Florida and California have been seeing an exodus of home insurance options in recent years, and other inland states are starting to see some of the same. The increasing frequency and severity of weather-related disasters spur a big part of this problem.

However, if you find yourself scrambling for home insurance, the bigger picture may be of less interest. What’s important to know is that you have options and resources. When your home insurance company drops you, don’t give up; let Bankrate walk you through the process of getting your home insured once again.

Reasons a home insurance company will cancel or not renew your policy

There are many different reasons why a home insurance company may choose to cancel or nonrenew a policy. Some of the most common causes include:

  • Non-payment: Your insurance policy is a legal contract between you and your insurer. In exchange for a premium, your insurer agrees to compensate you for covered losses. If you stop paying your premium, your insurance company will eventually cancel your home insurance policy for non-payment.
  • Frequent claims: Filing home insurance claims often could cause your home insurance premium to increase. And if you’ve filed multiple claims within the past few years, it’s possible that your home insurance company might cancel your policy altogether. Homeowners with a lengthy claim record are generally viewed as riskier to insure, and your insurance company may deem your property too high risk to keep on their books.
  • Insurance fraud: Insurance fraud is illegal, and it has serious ramifications. For example, if you intentionally set your house on fire to try to collect an insurance payment, your insurance policy will most likely get canceled, along with other potential consequences.
  • Underwriting issues: Certain underwriting issues can also lead to dropped insurance. For instance, if an adjuster visits your home after a claim and notices that it does not meet the insurer’s underwriting guidelines, it’s possible that your policy will get canceled. Maybe there’s a dead tree on the property that wasn’t there when your policy began, or maybe you put in a swimming pool without notifying your insurance company. Such actions can impact an insurer’s decision to cover your home.
  • Widespread losses: Insurance companies can, for the most part, pick and choose where they write policies. If a particular ZIP code, city or state is prone to widespread losses (like wildfires or hurricanes), an insurer may stop writing policies in those areas.

Cancellation vs. nonrenewal: Is there a difference in how my home insurance company dropped me?

Home insurance companies are generally restricted by rules regulating how and when they can drop a policyholder. For a cancellation, the requirements are often stricter than for a nonrenewal. This is partly because cancellations can occur during the active term of the policy, effectively canceling it while it would otherwise be in effect. Inversely, nonrenewal happens in the window between a policy’s expiration and its renewal. Nonrenewal is generally more permissible for carriers than cancellations but usually involves a required notification period, during which the carrier must inform the policyholder of the nonrenewal.

Cancellations are more often the result of fraud, non-payment, significant changes to the covered property or other extreme circumstances. A cancellation can have a bigger impact on homeowners than a nonrenewal for a couple of reasons. For instance, a cancellation will look worse on a homeowner’s insurance record, as the cancellation would likely be the result of violating the terms of their policy in some way. They would receive a notice of the upcoming cancellation, leaving them scrambling to find a new policy in time. Additionally, the cause behind the cancellation may make it difficult to find a new policy with other carriers.

Nonrenewals are still problematic for homeowners, but not as much. Nonrenewal can occur for several reasons, but it often doesn’t need to be as extreme or involve violating the terms of the policy. Common reasons can include poor property maintenance, increased risk assessment of the location, shifts in the carrier’s coverage options for the area and more. Your carrier will have to notify you in advance of a nonrenewal. Depending on the reason(s) behind the nonrenewal, the circumstances may not make it more difficult to find a replacement policy.

What should you do if your homeowners coverage is dropped?

If your homeowners insurance dropped you, they would have had to give you a heads up. Exact timelines will vary by state, but in general, your insurance company should give you between 30 to 120 days’ notice if it plans to nonrenew your policy. The timeline becomes shorter if the reason for cancellation has to do with non-payment or insurance fraud.

The first thing to do when you receive a nonrenewal notice is to read it carefully. If your insurance company did not disclose the exact reason for the decision, contact a representative to find out. Maybe you accidentally missed a payment or there was a paperwork error that can be fixed. 

If you can’t amend the situation with a phone call and your policy is scheduled to be canceled, here’s how to get homeowners insurance after being dropped:

  • Shop for a new policy: Start shopping for a new home insurance policy as soon as possible. Get quotes from a few different insurers to find the most affordable policy for your situation.
  • Reduce your risk: According to Bankrate’s Extreme Weather Survey, 57 percent of U.S. homeowners have taken action to mitigate the financial impact of extreme weather damage. If your policy was canceled due to risk-related issues, see if you can address them. For instance, if your home is in a high-risk hurricane area, consider installing stormproof windows and hurricane shutters, or replace your current roof with a metal one. 
  • Look into a surplus lines insurer: Some homeowners have a harder time getting approved for coverage due to factors that are out of their control. In this case, you might want to consider a surplus lines insurer. While fully legal, these carriers are not licensed in the states they operate in and therefore not beholden to a particular state’s usual insurance regulations. Because of this, a surplus lines insurer may be more open to writing a policy for a high-risk property. However, you can usually expect to pay higher-than-average premiums. 
  • Improve the condition of your home: In some cases, the policy may be dropped because of the state of your home. This could include the roof being in poor condition or other structural issues. In such cases, you may be able to address the issue that caused the policy to be canceled and get it reinstated. If you’re unable to reinstate your policy, the improved conditions of your home should help reduce your chance of being denied by a new insurer.

Home insurance cancellation laws by state

In many states, insurance companies must provide some type of notice before proceeding with a policy cancellation. However, every state has unique laws regarding home insurance cancellation and nonrenewal. 

If you have questions about the home insurance cancellation laws in your state, you can notify your state’s Department of Insurance using the contact information below:

What is a FAIR Plan?

If you’re struggling to get approved for a traditional home insurance policy, you might consider a Fair Access to Insurance Requirements (FAIR) Plan. FAIR Plans are an option of last resort for homeowners who have exhausted other options in the standard home insurance market. These plans make it possible for some homeowners to get coverage if they have been repeatedly denied. In fact, in order to qualify for a FAIR Plan policy, you will likely need to prove that you were denied in the private market at least twice. That said, qualification guidelines vary based on your state. 

FAIR Plans are state-managed programs, which are funded by private insurance providers licensed in a particular state. Unlike a standard home insurance policy, where you receive coverage from one company, FAIR plans are shared market plans, where you’re insured by several companies. With home insurance through a FAIR Plan, multiple insurance companies are providing your coverage. In that regard, it limits the risk that a single insurance company has to take on. If you make a claim, the companies that insure you each pay for some of the loss.

The type and amount of coverage you can get from a FAIR Plan depends on your state. However, these policies typically offer less protection than regular home insurance policies and are often more expensive.

According to the Insurance Information Institute, all FAIR Plans include coverage for fires, vandalism, riots and windstorms. Some FAIR Plans include personal liability insurance, but it depends on the state.

As of 2023, more than 30 states and Washington, D.C. offer FAIR Plans to qualifying homeowners. Colorado recently established a state FAIR Plan as well.

When should I look into getting a FAIR plan?

Once you receive notice that your homeowners insurance company dropped you, you should start shopping for new policies. If you get denied by two or more home insurance companies, it’s probably a good idea to look into a FAIR Plan. Most states require proof of denied coverage by at least two insurers before you can apply for a FAIR Plan.

If your home insurance policy gets canceled, it’s important to act quickly, whether you get another standard home insurance policy or a FAIR Plan. Once your policy expires, you will have no home insurance coverage. Or, if you have a mortgage on your home, your financial lender may implement forced-place insurance, which is expensive and covers very little. 

If you let your policy lapse, it could be more difficult to get another home insurance policy in the future, and the rates could be more expensive. Additionally, if anything happens to your home or property during the lapse, you will be responsible for the damage out of pocket. You can avoid a lapse in coverage by purchasing a new home insurance policy that starts a day or two before your old policy terminates.

Frequently asked questions

Written by
Natalie Todoroff Arrow Right Icon
Writer II, Insurance
Natalie Todoroff is an insurance writer and industry analyst for Bankrate. She is based in San Francisco and holds a personal lines insurance license.