What to do if you receive a non-renewal letter from your insurance carrier

We all want to protect our families and homes, and when we can’t easily find insurance, we want answers. If you’re currently holding a non-renewal letter, let’s discuss it.

First, understand the reason for non-renewal.

Knowing the reason why is critical for understanding your next steps; here are 5 of the most common we’re seeing:

1. You live in a high-risk area for wildfires
2. Your claims history may affect renewal.
3. You fail a home inspection.
4. The insurance company no longer operates in your area.
5. Other factors like getting a new dog or adding playground equipment, tree houses, or a swimming pool.

Second, talk to your broker.

Just because you received a letter doesn’t mean the decision can’t be reversed. Your broker should assist with contacting your current insurance company to uncover what considerations might help reverse the decision.

If you cannot get a policy through the standard market, you may be able to obtain coverage through the California FAIR plan. This state-run program is designed to provide home insurance to homeowners that may be too risky for standard home insurance companies.