Canceling a homeowners insurance policy and choosing not to renew it are two very different actions an insurance company can take.
Depending on your state, home insurance companies can only cancel an active policy during a policy term for a limited number of reasons. Some common reasons include the following:
- The policy has been in force less than a certain number of days, such as 60.
- You fail to pay the premium.
- You commit fraud or make misrepresentations on your application.
Nonrenewing a homeowners insurance policy is a decision your insurance company can make to discontinue coverage at the end of a policy term. Depending on your state, if your insurance company chooses not to renew your policy at the end of the policy term, they must notify you and provide an explanation within a specified time period. Contact your company if you disagree with the reason or want further explanation.