Insurance Cancelling Policy After a Property Damag 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:

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

Is It Legal for Insurers to Drop Your Policy After a Claim?

Yes, it is generally legal for insurers to non-renew policies after a claim, as long as they follow state regulations and provide proper notice. In Florida, insurers must give advance notice (typically 45 to 120 days, depending on circumstances) if they intend to non-renew a policy. However, canceling a policy mid-term due to a claim is less common and may only happen if you misrepresented information or failed to uphold policy terms.

While filing a claim can sometimes impact your insurance status, choosing to hire an insurance lawyer can help you navigate claims more strategically and potentially reduce your risk of non-renewal.

What About Non-Renewal?

If your insurance company doesn’t cancel your policy mid-term, they can still not renew it when it expires. Non-renewal means the insurer chooses not to continue your coverage beyond the current policy period. While frustrating, non-renewal is common after natural disasters when insurers face massive losses or need to reassess their risk profiles.

When Can an Insurance Company Cancel My Policy?

Under Florida law, there are specific circumstances in which an insurance company is allowed to cancel your homeowners’ insurance policy:

Non-Payment of Premiums: If you fail to pay your premium, the insurance company can cancel your policy, but they must give you proper notice.
Material Misrepresentation or Fraud: If you’ve provided false information or committed fraud while obtaining your policy or filing a claim, the insurer has the right to cancel your policy.
Multiple Claims in a Short Period: While filing one claim generally won’t result in cancellation, filing multiple claims within a short period can signal to your insurer that your property is at higher risk. This could lead to a non-renewal or cancellation, especially if the claims involve extensive or recurring damage.
Significant Property Changes: If your property condition has deteriorated or you’ve made unapproved structural changes that increase the risk, the insurer could consider this grounds for cancellation.
Natural Disaster Risks: In Florida, natural disasters like hurricanes significantly impact property insurance. After major storms, insurance companies might evaluate the financial risk of continuing to insure properties in highly affected areas. While they cannot cancel your policy during an active hurricane season, they may choose not to renew it afterward if your property is deemed too risky.

What Can I Do if I Can’t Find New Insurance Coverage?

If you’re unable to find private insurance, you may be eligible for coverage through Florida’s Citizens Property Insurance Corporation. This is the state’s insurer of last resort and provides policies to homeowners who can’t find coverage elsewhere.

While it’s rare for an insurance company to cancel your policy due to filing a property damage claim, it’s essential to understand your rights and what you can do if you receive a notice of cancellation or non-renewal. If you’re concerned about your insurance policy after filing a claim, consulting with an insurance attorney who can guide you through the process and ensure your rights are protected may be helpful.

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