Home insurance is supposed to be there for when you need it. In most situations, homeowners can count on their insurer to provide ongoing protection during the period of the policy. It is a contract and, if you read through it, you’ll find that there are some limitations to that policy. Before you file your next claim, take the time to learn more about what’s in the policy, what it covers and when it can be canceled by the insurance company.
Will the Insurer Cancel Your Policy?
In most cases, home insurance policies are in place for 12 months. During that period of time, if an incident occurs that is considered a covered claim, you’ll be able to file a claim with your insurer for the losses you’ve suffered. Of course, it has to fall under the terms of the contract. Nearly every home insurance policy also has a claim limit. This is the highest amount of funds the policy will pay out during the policy period.
Once you’ve exhausted that amount of money, the policy no longer provides you with protection. In some cases, the insurer can decide to not renew the policy with you. They may do this for a number of reasons. For example, if the claims are numerous, even if they are accurate and verified, the insurer may see you as a high risk and, therefore, decide not to renew the policy with you. If there is any situation in which fraud is a factor, the insurer is unlikely to renew your claim and can cancel the policy at any time without refund to you.
What you need to remember is that you are under a contract with your home insurance provider. As long as you make payments on time and only make claims that are verified and accurate, your insurer isn’t likely to cancel your policy. If you make too many claims, especially high-value claims from risky situations, chances are good the insurer may decide not to renew this contract with you. Take the time to review the details of your policy to learn when the insurer may decide to cancel it and what it covers specifically.
For more help, call Voyager Insurance Services at (800) 342-4444 for more info on Dallas home insurance.