Unfortunately, in the State of Florida, it is common for insurance carriers to reduce their hurricane exposure by non-renewing certain policies. Insurance carriers in Florida are required by statute to give advanced notice of non-renewal. Many times, homeowners will receive the non-renewal and then wait until a week or two prior to the expiration of their current home insurance policy before looking for another policy. Here are three reasons why you should start your search for a replacement policy immediately upon receiving a non-renewal notice.
First – Claims.
The reality is you do not know when a claim event will occur. Most insurance companies will not issue a new policy if you have an open claim or if the damage is pending repairs. This is one of the main reasons we recommend switching sooner rather than later if you receive a non-renewal notice so you can avoid the potential pitfall of a claim event occurring as your current policy is expiring.
Second – Inspections.
If you have an older home, 40 years or older, generally speaking. It’s possible that the insurance carrier will require you to provide documentation showing that certain things have been updated such as the roof, the AC, the water heater to name a few. These updates are reflected on a four-point inspection. If your four-point inspection notes certain issues with the home, it’s possible that you’ll need to remedy these issues before a new insurance company will insure your home. All these things take time so if you own an older home it super important to begin your insurance search as soon as possible.
Lastly – Hurricane Season.
As a hurricane approaches the State of Florida, many insurance companies will restrict binding. This means that they will not allow new policies to be issued. If the expiration of your policy falls during hurricane season and you wait until the last minute to find a replacement policy, and it just so happens to be at a time of binding restriction, it’s possible that your home could be uninsured during a hurricane. Now this is a worst-case scenario, but it’s a likely scenario and a completely preventable scenario as well.
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