Can An Insurance Company Drop My Policy Because I’ve Filed a Property Damage Claim?

Understanding Policy Cancellations vs. Non-Renewals

Florida Law on Mid-Term Policy Cancellations

Florida Statutes Section 627.4133 specifically regulates when property insurance companies can cancel your homeowner’s insurance policy. These laws are designed to protect policyholders from arbitrary cancellation while allowing insurers to manage legitimate risks.

When Can an Insurer Cancel Your Policy Mid-Term?

Under Florida law, your insurance company can only cancel your homeowner’s policy during the policy term for specific, limited reasons:

During the First 90 Days of Coverage:

• Your insurer has broader cancellation rights during this initial period
• They can cancel for almost any reason with proper notice
• This is sometimes called the “underwriting period”

After 90 Days of Coverage: Your insurer can only cancel your policy for these specific reasons:

• Non-payment of premium – You failed to pay your insurance premiums
• Fraud or material misrepresentation – You provided false information on your application or during the claims process
• Substantial increase in hazard – Significant changes to your property that increase risk (such as starting a business on the premises or substantially altering the property’s use)
• Physical changes to the property that materially affect insurability
• Loss of reinsurance – Your insurer loses the reinsurance necessary to support the policy

Can They Cancel Just Because You Filed a Claim?

No. Florida law does not allow insurance companies to cancel your policy mid-term simply because you filed a legitimate property damage claim. Filing one claim, or even multiple claims, does not constitute grounds for mid-term cancellation under Florida Statutes Section 627.4133.

Your insurance policy exists precisely so you can file claims when you suffer covered losses. Penalizing you for using your coverage as intended would undermine the entire purpose of insurance.

Non-Renewal Rights: Where Insurers Have More Flexibility

While Florida law restricts mid-term cancellations, insurance companies have significantly more discretion when deciding whether to renew your policy at the end of your coverage period.

How Non-Renewal Works in Florida

When your policy term ends (typically after 12 months), your insurance company may choose not to offer you a renewal policy. They must provide you with advance notice, generally at least 120 days before the policy expires if they’re not renewing for underwriting reasons, or at least 45 days for other reasons.

Can They Non-Renew Because of Claims?

Unfortunately, yes. Insurance companies in Florida can decline to renew your policy based on your claims history. This is one of the most significant differences between cancellation and non-renewal.

Factors that may lead to non-renewal include:

• Multiple claims filed during the policy period – Even legitimate claims can trigger non-renewal
• The severity and cost of claims – Large claims may flag you as a higher risk
• Certain types of claims – Water damage and mold claims, in particular, often lead to non-renewal
• Claims frequency – Filing multiple claims within a few years can result in non-renewal

The Reality of Florida’s Insurance Market

Florida’s property insurance market has faced unprecedented challenges in recent years. Carriers have been leaving the state, and those remaining have become increasingly selective about which policies they’ll renew. Even policyholders who’ve filed just one or two legitimate claims have found themselves unable to secure renewal. This doesn’t make non-renewal fair, but it is legal under current Florida law, provided the insurer follows proper notification procedures.

Required Notice Periods for Cancellation and Non-Renewal

Florida law mandates specific advance notice periods that insurers must follow:

For Cancellations:

• Non-payment of premium: At least 10 days’ notice
• Cancellation during first 90 days: At least 20 days’ notice
• Cancellation after 90 days for other valid reasons: At least 45 days’ notice
• Cancellation for substantial increase in hazard: At least 20 days’ notice

For Non-Renewals:

• Non-renewal for underwriting reasons: At least 120 days’ notice before policy expiration
• Non-renewal for other authorized reasons: At least 45 days’ notice before policy expiration
• 100 days’ notice may be required in some circumstances

These notice periods are designed to give you time to find alternative coverage before your current policy lapses.

What Constitutes an Invalid Cancellation or Non-Renewal?

While insurers have legal grounds for cancellation and non-renewal, specific actions violate Florida law:

Prohibited Reasons for Cancellation or Non-Renewal:

• Filing a legitimate claim for covered damages
• Making a claim inquiry without actually filing a claim
• Your age, race, religion, or other protected characteristics
• The geographic location of your property (with some exceptions)
• Retaliation for exercising your legal rights
• Arbitrary or discriminatory reasons

Improper Notice:

• Failing to provide adequate advance notice
• Not providing notice in writing
• Failing to state the specific reason for cancellation or non-renewal
• Not following required notification procedures

If your insurer cancels or non-renews your policy in violation of Florida law, you may have grounds to challenge their decision and potentially pursue legal action.

Speak With Our Expert Florida Insurance Claim Lawyers Today

If your insurer is threatening to drop your policy or has already done so after you filed a claim, you do not have to handle this alone. Williams Law Association, P.A. has helped thousands of Florida homeowners stand up to insurers that refuse to play fair. We fight to protect your rights, your home, and your financial security.

Would you like to learn more about handling insurance disputes or what to do if your claim is delayed? Feel free to contact Williams Law Association, P.A. with questions. Call us at 1-800-451-6786 or fill out our online contact form.