Could switching from homeowners to renters policy then back after rebuilding allow for a denied homeowners policy Martin Kappeyne asked 3 weeks ago
Could switching from homeowners to renters policy then back after rebuilding allow for a denied homeowners policy

Many of us (from the Palisades Fire) with USAA homeowners’ insurance (including earthquake) are being called and told to drop our homeowner’s policy but keep liability and switch our homeowner’s policy to a renter’s policy.

  1. We’ve been told by some to keep our homeowners’ policy. If we switch, are we considered to not have a homeowner’s policy? Since USAA is not writing new policies in California are they not required to renew us per California’s 2-year renewal law?
  2. What happens if the rebuilding takes longer than the 2 years when our houses are finally rebuilt, will USAA still be required to reissue our policy?
  3. What is the status then of the fire related claims from our current homeownership policy on our dwelling if it is only a liability and renters’ policy? How do we make sure our claims stay open?
1 Answers
Answer for Could switching from homeowners to renters policy then back after rebuilding allow for a denied homeowners policy United Policyholders Staff answered 5 days ago
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Hi Martin,

You’re right in your understanding — if you cancel your homeowners policy and switch to renters insurance, the 2-year guaranteed renewal protection would no longer apply. Once the policy is canceled, USAA is not obligated to reissue it, period.

However, canceling your policy will not impact any existing claims. As long as the policy was active on the date of the loss, your fire-related claims will remain open and valid.

While USAA is a great company, the 2-year non-renewal protection likely doesn’t offer much value in your case, especially if there are exclusions (like vacancy or occupancy clauses) that could void the policy during a claim. A homeowners policy is not designed to cover a construction project.

Instead, you should look into obtaining a builder’s risk or course of construction policy during the rebuild period. Some carriers may automatically offer this coverage so check with USAA first; otherwise, you’ll need to secure it separately along with liability protection.

Lastly, getting renters insurance is a smart move, but use it cautiously. Small claims (like a $2,000 loss) could count against you when shopping for new homeowners insurance later. Only file a renters claim if it’s significant and financially necessary.

Kindly, Amir F.