Non renewal of Homeowner’s policy during California storm damage claim Robert asked 10 months ago
Non renewal of Homeowner’s policy during California storm damage claim

My home suffered storm damage in January 2023. Fortunately much of the remediation and repair is covered by my current provider. In March they sent me a non-renewal notice citing unacceptable risk. As of the end of April, repairs have not begun and are likely to go well beyond the end date for my policy. I’m stressing over the looming lack of coverage.

Here are my questions.

  1. Is an insurance provider allowed to non-renew in the middle of this claim?
  2. What happens to the claim at the end of my policy’s coverage?
  3. What happens if the repairs cost more than the insurance company’s estimates? I expect them to pay the difference within the limits of the policy even after the end date.
  4. It was very difficult to find coverage for this home in the first place. During my current insurance shopping effort, providers are saying they won’t insure until my claim is completed. How do I fill the coverage gap if the claim goes beyond the end of the policy and nobody will insure until the claim is done?
1 Answers
Karl Susman Karl Susman Expert answered 10 months ago

Hi Robert,

Let me try to address your questions here –

Is an insurance provider allowed to non-renew in the middle of this claim?

  • Yes, an insurance company non-renewing and the timing of a claim are independent factors.

What happens to the claim at the end of my policy’s coverage?

  • Technically, you could request cancellation of your policy the day after the claim and it would not have any impact on the claim. You had coverage during the time of the claim, therefore what happens after it should not have anything to do with the claim handling.

What happens if the repairs cost more than the insurance company’s estimates? I expect them to pay the difference within the limits of the policy even after the end date.

  • This is something to work with your adjuster on. Estimates are just that, estimates, don’t pre-stress about actual costs coming in higher, if they do you can discuss with your claim’s adjuster.

It was very difficult to find coverage for this home in the first place. During my current insurance shopping effort, providers are saying they won’t insure until my claim is completed. How do I fill the coverage gap if the claim goes beyond the end of the policy and nobody will insure until the claim is done?

  • It is not uncommon for an insurance company to want to see previous claims resolved before making an underwriting decision about new coverage on a new risk. For example, if the claim ends up costing $25,000 it would impact the new insurance companies decision more than if it cost $500,000. Having said that, you need to find an insurer that is willing to underwrite with the open claim. Remember your question above asking about estimates? It can be useful to show the potential new insurer what it is estimated to cost to finalize your claim as a means to help them underwrite your risk.