Being dropped by your homeowner’s insurance company can be an alarming and frustrating experience. Knowing how to stay low-risk and what can cause your policy to be dropped is important. There are ways to avoid being dropped by your homeowner’s insurance company and some things to do if this does happen.

Insurance company’s decision - Sometimes, the reason has nothing to do with you or your home. Companies will simply stop writing policies for certain areas. When this happens you can easily apply with another company.

You or your home become high-risk - If there’s been a negative change in your credit score, with some companies you are at risk of having your homeowners insurance dropped. You also become high-risk when you file too many or certain types of claims. Water claims are typically to blame are one of the most frequent causes of companies dropping insureds. Making changes to your home that cause it to become uninsurable could also cause you to be dropped. When you are dropped, you are entitled to a copy of your CLUE (Comprehensive Loss Underwriting Exchange) report to see what kind of claims are on your policy. Insurance companies document claims on this report so any company can see your claims when you apply for coverage. If you FIND INACCURACIES ON THIS REPORT you can make an appeal.

There are agents with the right resources that can usually help you find coverage that is right for you.