When can an insurance company cancel my homeowners coverage during the policy term?
Generally, your policy can be cancelled for these reasons:
- Non-payment of premium;
- Material misrepresentation/Fraud;
- Conviction of a crime arising out of acts increasing the hazard insured against. (For example, conviction for illegal storage of fireworks);
- Discovery of willful or reckless acts or omissions by the insured increasing the hazard insured against. (For example, not getting a gas leak fixed);
- Physical changes in the property insured which result in the property becoming uninsurable. (For example, should the home become vacant for more than 60 consecutive days, a greater exposure to vandalism and damage is assumed to exist); and
- A determination by the Commissioner of Insurance that continuation of the policy would place the insurance company in violation of the law.