Can Homeowner's Insurance Drop You for Moving?
Homeowners' insurance policies are designed around the specifics of the home. Factors such as the type of building material, roofing materials and type of heating have just as much impact on the policy as the home's measurements, occupancy and location. Moving out of the home can change nearly all of the parameters of the homeowners' policy, which may result in the insurance carrier dropping the policy.
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Risk
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Moving from the home insured by the insurance policy means, in essence, change the terms of the policy contract. The changes in the home alter the risk the insurance company takes by accepting the policy. If the risk is too great, the insurance carrier will use its right to cancel or not renew the policy as an unacceptable risk.
State Authorization
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If the new home is located outside of the insurance carrier's state authorization, the carrier will have no choice but to drop the policy. Insurance carriers are required to secure authorization from the state before being lawfully permitted to conduct business. If you move to another state, you will receive a nonrenewal notice or cancellation notice from your carrier.
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Notification
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Every state requires the homeowners' insurance carrier to provide the policyholder with notification prior to canceling or not renewing the policy. Though it varies by state, insurance carriers generally provide non-renewed policyholders at least a 30-day notice. Canceled-policy notifications vary from 10 to 30 days, depending on the state. The notification is intended to provide the policyholder with ample time to secure replacement coverage before experiencing a lapse in coverage.
Action
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If you receive notification that your insurance company is dropping your homeowner's policy, contact your carrier right away. Though the carrier may not be able to continue coverage under the current policy, the insurance company may be able to insure your home under another, freshly written policy that is designed around the new home's specifics.
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References
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