Home Insurance Cancellation Laws by State: What You Can Do

Home insurance companies can cancel your policy in certain circumstances. To protect consumers, each state has different home insurance cancellation laws and requirements.

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Home insurance is required for most homeowners with a mortgage, but a few scenarios can lead to policy non-renewal or cancellation. Non-renewal means that your insurance company won’t renew your policy at the end of the term, often through no fault of your own. Cancellation can happen at any time during the policy period and is often caused by non-payment of premiums or insurance fraud.

Every state has unique laws that protect consumers from home insurance non-renewals and cancellations. These laws typically require home insurance companies to give advance notice to policyholders facing non-renewal or cancellation due to specific circumstances.

Here are some tips for handling cancellation or non-renewal of your home insurance and how your state affects your policy.

Home insurance cancellation laws by state

If you have homeowners insurance, it’s beneficial to understand the unique cancellation laws where you live. In the following table, you can see home insurance cancellation laws by state.

Why home insurance companies might cancel or not renew a policy

Home insurance companies are allowed to cancel or not renew policies for the following reasons:1 2

What to do if your home insurance company drops you

If your insurance company doesn’t renew your policy or cancels your coverage altogether, here are a few things you can do:3

  • Dispute the decision. If you don’t believe that the cancellation or non-renewal was justified, you can dispute the decision by notifying your insurance company or your state’s department of insurance.

  • Improve the condition of your home. If your policy was terminated because your home is in poor condition, consider making relevant improvements, like replacing the roof or upgrading major systems, like electrical and plumbing.

  • Start shopping for a new policy. It’s a good idea to start shopping for a new home insurance policy as soon as you receive a notice of cancellation or non-renewal. That way, you have plenty of time to research insurers, compare rates, and avoid a lapse in coverage.

  • Consider a FAIR Plan. If your policy was canceled because your home is deemed too risky to insure, look into your state’s Fair Access to Insurance Requirements (FAIR) Plan. These plans cover high-risk homeowners who struggle to get approval for policies on the voluntary home insurance market.

How to prevent your home insurance policy from being canceled

You can’t always control whether your home insurance policy gets renewed. But you can take steps to reduce the risk of cancellation:

  • Always pay your home insurance premium on time.

  • Make improvements to your home and repair known issues.

  • Avoid filing excessive home insurance claims.

  • Install safety devices, like fire alarms, to reduce risk.

  • Understand how certain dog breeds can affect home insurance.

  • Be truthful when reporting information or claims to your insurance company.

Home insurance cancellation laws FAQs

It’s important for homeowners to understand cancellation laws in their state. Here’s additional information about home insurance cancellation and when it can happen.

  • What happens when your homeowners insurance is canceled?

    When your homeowners insurance coverage gets canceled, you’ll receive a written cancellation notice within a certain time frame before your coverage ends. You won’t have coverage if you don’t have a new policy in place before the old policy’s expiration date. Once you receive a written notice of cancellation or non-renewal, you should start shopping for a new policy right away.

  • Is it hard to get homeowners insurance after being dropped?

    It can be more difficult to get homeowners insurance if your policy has been canceled in the past, especially if you failed to pay the premiums or lied on your application. If you’re unable to find a new home insurance policy, your mortgage lender may be able to find one for you. But the premium will likely be much more expensive than you were previously paying.

  • Under what circumstances can an insurance company cancel your home insurance?

    Home insurance companies can only cancel your policy in certain situations. Once your policy has been in effect for more than 60 days, the insurer can usually only cancel it if you stop paying the premiums or commit insurance fraud. But if your policy has been in effect for less than 60 days, insurers can cancel your policy for almost any reason.

  • What are the three types of home insurance cancellation?

    The three types of home insurance cancellations are flat, pro-rata, and short-rate. Flat cancellations occur when the policyholder hasn’t started paying premiums, so no refund is required. Pro-rata cancellation means that you receive a refund for unused premiums only. With a short-rate cancellation, the insurance company charges a penalty on the unused premiums, which is meant to prevent policyholders from canceling their coverage in the middle of the term.

Elizabeth Rivelli
Elizabeth Rivelli

Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com. 

Elizabeth has been a contributor at Insurify since October 2022.

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Home Insurance Cancellation Laws by State | Insurify