Cancellation and non-renewal: what is the difference?

If you think that policy non-renewal and cancellation is the same thing, think again. There's a substantial difference between these two. Generally an insurer hasn't the right to cancel a home insurance policy that is active for more than 60 days except when:

• Your premium is not paid in time
• You have misrepresented or committed fraud on your policy.

In case of a non-renewal it's either you or the insurer who decides to stop cooperation when the policy expires. In case it is your insurance company opting for non-renewal, you can contact their customer support to know the reason of such a decision. If you believe the reason is unfair, you can contact your state insurance department to investigate the case.

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	There is a variety of reasons why the insurance company may wish to not renew your home insurance policy. It may be their strategic goal to reduce the number of policies in that particular area, or financial losses caused by an external factor. The reason is not necessarily any of your actions. But if your actions have caused considerable expenditures to the company, like an at-fault accident, you may be charged with higher premiums or have your policy not renewed. In case you have faced a non-renewal with one insurance company, that doesn't mean you will be required to pay higher premiums with another insurer.