Though not common, some home insurance providers have canceled policies or dropped clients in the past. This is not a rash decision, or a choice made on a whim. Many insurance agencies do their best to keep clients, not lose them. Unfortunately, there are some circumstances in which an agency may decide to cancel a policy or drop a client.
Excessive Home Insurance Claims 
Perhaps the most common reason homeowners are dropped from their policy is due to having too many claims. Yes, your home insurance is in place so that you can file claims. But filing too many in a short period of time raises red flags for your insurer.
Claims cost the insurance agency money. If a client becomes too risky to insure—in other words, if the insurance agency frequently must pay out claims—the insurance agency may drop the client, since they are too risky to insure.
Frequent claims also bring into question the validity of the claims. Claims that are considered fraudulent will be denied and may lead to a cancelled policy. Fraudulent home insurance claims include overstating the value of items, lying about theft or burglary or intentional damage to the property
Insurance agencies may have different limits on how many claims is considered “too many.” But, as a rule, it’s recommended that you file no more than one claim per policy term.
Not Paying Home Insurance Premiums
Another common reason for insurance agencies to drop a policy is nonpayment. If a policyholder fails to pay home insurance premiums in a timely manner, the home insurance policy may be suspended or cancelled. Don’t completely give up if you can’t afford your home insurance premiums, however. If you contact your insurance provider and explain why you cannot pay your insurance premiums, many agencies are willing to work with you. There are also ways to lower your home insurance rates to make premiums more affordable.
- Ask about discounts
- Add safety measures to your home (anti-theft systems, fire alarms, fences, etc.)
- Safeguard your home against weather
- Build your credit score
- Get rid of high-risk aspects of the home (such as trampolines)
- Raise your deductible (though this means you will pay more out of pocket if you have to file a claim)
Pets
Unfortunately, your furry best friends may influence your home insurance rates. Some insurance agencies exclude pets and dog breeds from liability coverage. While pets may not have you dropped from your home insurance policy, they can make you personally liable for damage or injury they cause. Insurance agencies are also reluctant to insure pets who have caused bodily injury or property damage in the past. Be sure to check with your insurance provider about their pet and breed exclusions. Common exclusions include exotic pets like snakes and dog breeds that are considered “aggressive.”
Carrier Changes
Sometimes, policyholders are dropped for reasons they have no control over. If an insurance carrier decides to stop offering insurance in your area, you will have to find a new insurance provider. A trusted independent insurance agent like All About Insurance can help you with this process if the need arises.
Issues Insuring the Home
Lastly, there are some aspects of a home that an insurance company may refuse to insure. Homes that are too far from a fire station may have trouble finding coverage. Homes with poor roofing may be required to be fixed before an insurer will cover it. Failure to comply can result in no coverage or cancelled coverage.