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Steps to take if your insurer sends you a non-renewal letter

Online Niel November 1, 2024

The insurance industry is in a state of flux. This means that you may have to look for a new policy due to non-renewal, a price increase that you feel is unjustified, or even because your insurance company is going out of the insurance business altogether. Here’s what to do, step by step, if you receive a non-renewal letter.

How to handle a non-renewal letter from your insurance company – YouTube

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1. As soon as the non-renewal letter is received

Don’t wait, don’t delay, don’t pass Go collect $200. It’s time to act on your behalf. You are now on notice that your insurer intends not to renew or keep your policy at its expiry date. The clock is ticking and state laws differ, but you have a short window of time to take action.

2. Look for the reason for non-renewal

When you receive a non-renewal letter from an insurance company, they will tell you why. You may not like it or agree with the reason, but you shouldn’t see a letter that says goodbye on its own without any explanation. State regulations differ on the amount of detail provided at this stage, but you should have something to work with. Assuming the problem is something you have control over and are willing to correct, you’ll need to follow these next steps.

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For the sake of discussion, let’s assume that your non-renewal is due to a physical condition of your home. Maybe your roof has missing tiles, you have an empty pool in your backyard, or trees are on top of your roof. We can give up on why they are a danger to you and by extension your insurer for now. Suffice it to say that one of these is the reason provided for the non-renewal notice from your insurer.

Reading this, you say to yourself, “I can fix this myself!”

3. Tell the agent or broker and the insurer about your plans

While mind reading is a skill set that I do not personally possess, some may claim that they do. Don’t assume that your insurance company will somehow magically know that today, this very day, you received the non-renewal letter and took it upon yourself to address the conditions addressed as concerns. You might know it, the other might know it, your neighbors might even see a contractor hard at work putting a new roof on your house. After all, who can miss the repulsive smell of tar and the rumble of the spinning barrel when the roofers are hard at work?

your email insurance agent or broker immediate. Don’t wait until the job is done, don’t wait until you decide which contractor to work with – remember the clock is ticking and the sooner you make your intentions known the better. I suggest you send an email and keep any response you receive from the insurer or their representatives. Sometimes things get lost in the shuffle, and being able to pull up an email to show you’ve reached out is invaluable.

Inform the relevant authorities that you have received the non-renewal notice and confirm that you understand what the problem is. Let them know you will fix the problem and get proof of their fix within a certain number of days. Yes, give a date – don’t say you’ll let them know soon or as soon as you can. Put a date on it and stick with that date.

4. Fix it

You may think this goes without saying, but believe me, it’s not. You need to address what was listed in your non-renewal letter. Remember you made a commitment to fix the problem, so keep going. There will be no trickery here – if XYZ is listed as a problem, you commit to fixing XYZ and you will have to repair X and Y and Z. Not X and Y and I think that’s enough and Z is OK. It certainly won’t be enough. Fixed. It. All.

5. Get evidence to the insurer and agent or broker

Now that you’ve spent your hard-earned money to fix the problem, take credit for it. You did as you promised, so show off. Don’t assume that the insurance company will send someone to inspect and verify that the work is done simply because you said you would. Unfortunately, many owners claim they are working and then never do. Insurers know this from experience and cannot afford to send an inspector for every supposed physical condition correction.

Take pictures. Many of them. Make some video – heck, make both. Leave no doubt that what was there and what was in question is no more. Get proof from both the insurance company and the agent or broker.

Keep the e-mail confirming receipt of the proof. Keep everything. Always.

6. Confirm the reinstatement of your policy

Finally, it’s time to see the fruits of your labor. You must contact your insurance company and agent or broker to obtain confirmation that your policy is no longer non-renewed. This may sometimes be called “rescinding a non-renewal notice” or “reinstating a previously established non-renewal policy”. We’re insurance people – we like to put fancy names on simple items. Bottom line: get proof that you won’t be unrenewed.

Congratulations! Never forget that you have more power with your insurance policies than you might think.

This article was written by and reflects the views of our contributing advisor, not the Kiplinger editorial staff. You can check advisor records with help dry or with FINRA.

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Steps to take if your insurer sends you a non-renewal letter

1. As soon as the non-renewal letter is received

2. Look for the reason for non-renewal

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Steps to take if your insurer sends you a non-renewal letter

1. As soon as the non-renewal letter is received

2. Look for the reason for non-renewal

Online Niel

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