The answer to this query is an emphatic “Yes”. Insurance companies have been known to have cancelled Homeowners Insurance, or have refused renewals at the drop of a hat, without assigning any reason to you.
However, there are certain definite reasons behind such actions. First and foremost, you must remember that insurance companies provide risk-cover, so anything that is considered too risky to cover, is refused.
You must be aware about under what circumstances your Homeowners Insurance can be cancelled. Here are a few contingencies that might compel the Insurance company to cancel your home insurance:
- You have defaulted in the payment of insurance premium
- You may have not disclosed true and complete information about your property
- You may have made some fraudulent claim
- Non-compliance with safety codes or safety guidelines
- Making multiple claims in a short period
- Non-maintenance or ignoring repairs that may damage the house
There can be more reasons as well. However, what is important for you is to immediately take remedial action and find coverage from any other insurance company.