Can An Insurance Company Cancel My Policy Because I’ve Filed A Property Damage Claim?

The short answer to this question is ‘no.’ Florida has rules that insurers must follow before canceling property insurance coverage. A company may not cancel your policy simply because you filed a property damage claim. If you have had an insurance policy for more than 90 days and made timely payments, your policy can only be canceled for specific reasons. However, you may face a non-renewal after filing a claim. You may even receive a non-renewal notice while still involved in a dispute with the insurance company.

According to Florida Statutes Section 627.4133, insurance companies are restricted from canceling or non-renewing a policy based solely on the insured filing a single claim or multiple claims for the same peril unless certain conditions are met. These conditions include:

  1. The claim resulted from circumstances clearly outside the insured’s control and could not have been reasonably anticipated.
  2. The insured has taken reasonable steps to prevent a recurrence of the circumstances leading to the claim.
  3. The claim was not part of a pattern of claims that indicates an increased risk of future losses.

Suppose an insurance company wants to cancel or non-renew a policy based on claims history. In that case, they must provide written notice to the policyholder explaining the reasons for the cancellation or non-renewal. It’s essential to review the terms of your policy and consult with one of our legal experts if you believe your insurance company is attempting to cancel your policy unfairly.