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If your home insurance company says it will not renew your policy, do not wait until your coverage is about to end. Find out why you were dropped, start getting quotes from other insurers, and contact your state insurance department if you are having trouble finding coverage.
If regular insurance companies will not cover your home, your state may have a FAIR Plan or another insurer of last resort. These programs are designed to provide basic property insurance when homeowners cannot find coverage elsewhere.
The important part is that a FAIR Plan should usually be a backup option, not your first stop.
Key takeaways
- Start shopping as soon as you receive a non-renewal notice. Do not wait until your current policy expires.
- Ask your insurer why it will not renew you. Sometimes repairs or safety improvements can help.
- Get quotes from several insurers or work with an independent insurance agent.
- If regular insurers will not cover your home, check whether your state offers a FAIR Plan or similar last-resort program.
- FAIR Plans may provide less coverage than a normal homeowners policy, so check exactly what is included.
- If you have a mortgage, avoiding a gap in insurance is especially important because your mortgage company may buy insurance for the property and charge you for it. That coverage is usually more expensive and may protect the lender more than it protects you.
First, what does a home insurance non-renewal mean?
A non-renewal means your insurance company will cover you until your current policy ends, but it does not want to issue another policy for the next term.
That is different from having your insurance canceled immediately.
There are many possible reasons for a non-renewal. Your insurer may be concerned about your roof, previous claims, wildfire or hurricane risk, or another issue with the property. In some cases, the company may simply be reducing how many homes it insures in your area.
Rules about non-renewals are different in every state, including how much notice an insurer must give you.
For example, California generally requires insurers to send a written non-renewal notice at least 75 days before a residential policy expires. That does not mean every state uses the same 75-day rule.
The first thing to do is check the date on your notice so you know exactly when your current coverage ends.
What should you do if your insurer won’t renew you?
1. Call your current insurance company
Ask why your policy is not being renewed.
More importantly, ask:
“Is there anything I can fix that would allow you to keep insuring my home?”
For example, the insurer may want you to replace an old roof, remove vegetation near the house, repair damaged wiring, or fix another safety problem.
California’s Department of Insurance specifically recommends asking an insurer whether there are steps you can take to reduce the property’s risk and keep your coverage.
If the problem is something you can reasonably fix, keeping your current insurer may be easier than starting over.
However, if the company is pulling back from your entire area, fixing your individual home may not change its decision.
For more help with this situation, see our guide to what to do when your homeowners insurance is dropped.
2. Start shopping for another insurer right away
Do this even if you are asking your current insurer to reconsider.
Contact several insurance companies and compare quotes. You can also work with an independent insurance agent who can check multiple insurers for you.
Do not compare price alone.
Look at:
- How much coverage you get for the house
- Your deductible
- Personal belongings coverage
- Liability coverage if someone is injured on your property
- Coverage for temporary living expenses after a covered disaster
- Special deductibles or exclusions for hurricanes, wind, wildfire, or other risks
A $2,500 policy that provides much stronger protection could be a better deal than a $2,000 policy with major gaps.
You can also use our homeowners insurance renewal guide while comparing your options.
3. Contact your state insurance department if you are stuck
If several insurance companies reject your home, check your state’s Department of Insurance website or contact the department directly.
Depending on where you live, your state may have a FAIR Plan or another program for homeowners who cannot find insurance in the normal market.
The names and rules differ from state to state. NAIC says many states have some form of FAIR Plan, while other states use different programs that serve a similar purpose.
Florida, for example, has Citizens Property Insurance Corporation, which describes itself as the state’s insurer of last resort.
You do not need to memorize these program names. Your state insurance department can point you toward the option available where you live.
What is a FAIR Plan?
A FAIR Plan is basically backup property insurance for people who cannot find coverage from regular insurance companies.
FAIR stands for Fair Access to Insurance Requirements.
These programs were created so that someone who owns a difficult-to-insure property is not automatically left with no insurance option at all.
You might need a FAIR Plan because your home is in an area with high wildfire, hurricane, wind, or other disaster risk. A property’s age, construction, or condition may also make regular coverage difficult to find.
One important detail: calling a FAIR Plan “state insurance” can be misleading.
The exact structure differs by state. California’s FAIR Plan, for example, says it is not a state agency and does not receive taxpayer funding. Insurance companies that operate in the state participate in the plan.
For homeowners, though, the practical point is much simpler:
It is a safety net when normal insurance is not available.
Does a FAIR Plan cover everything?
Not necessarily.
This is probably the biggest thing homeowners need to understand before buying one.
A normal homeowners policy often combines several kinds of protection into one policy. A FAIR Plan may cover fewer things.
NAIC warns that FAIR Plans generally provide more limited protection than coverage available in the regular insurance market.
California is a good example. Its current FAIR Plan mainly provides basic property coverage. Homeowners may need a second insurance policy to add protection for things such as water damage, theft, liability, and additional living expenses.
You may see this second policy called a Difference in Conditions policy, or DIC policy.
You do not really need to remember the name. Just remember the question to ask your agent:
“What would a normal homeowners policy cover that this FAIR Plan does not?”
That makes it much easier to see whether you need additional insurance.
Is a FAIR Plan more expensive?
It can be.
NAIC says FAIR Plan coverage is generally more expensive and more limited than insurance available through the regular market.
But there is no single FAIR Plan price that applies across the country.
Your cost will depend on where you live, the value and condition of your home, local disaster risk, your deductible, and the amount of coverage you need.
You should also look at the total price.
For example, if a FAIR Plan costs $2,000 but you need another $1,000 policy to fill its coverage gaps, your real insurance cost is closer to $3,000.
That is the number you should compare with private insurance quotes.
Should you go straight to a FAIR Plan?
Usually, it makes sense to check the regular insurance market first.
Try this order:
- Ask your current insurer whether you can do anything to keep your coverage.
- Get quotes from several other insurers.
- Ask an independent agent to look for additional options.
- Contact your state insurance department if you still cannot find coverage.
- Consider your state’s FAIR Plan or other last-resort program if regular insurance is not available.
The goal is not to avoid FAIR Plans at all costs. They exist for a reason and can be extremely important when homeowners have few other choices.
The goal is simply to understand your other options first.
Don’t let your insurance expire while you shop
This matters especially if you have a mortgage.
Mortgage agreements normally require homeowners to keep insurance on the property.
If your policy expires and you do not replace it, your mortgage servicer may buy insurance for the property and charge you for it. This is called force-placed insurance.
The CFPB says this insurance is usually more expensive than finding a policy yourself. In many cases, it mainly protects the lender rather than providing the full protection you would expect from your own homeowners policy.
So even if finding new coverage is frustrating, do not ignore the deadline on your non-renewal notice.
Can you switch back to regular insurance later?
Yes.
A FAIR Plan does not have to be permanent.
Keep shopping again at future renewals, especially if you make your home safer or easier to insure.
You may have more options after replacing an old roof, improving wildfire protection, strengthening the home against wind, or completing other upgrades insurers care about.
The insurance market in your area can also change over time.
California’s FAIR Plan itself describes its role as a temporary safety net until traditional insurance becomes available again.
FAQ
What should I do first if my home insurer won’t renew me?
Check when your current policy expires, ask your insurer why it is not renewing you, and start shopping for another policy immediately.
What is a FAIR Plan in simple terms?
A FAIR Plan is backup property insurance for homeowners who cannot get coverage from regular insurance companies.
Is a FAIR Plan the same as regular homeowners insurance?
Not always. FAIR Plans may cover fewer risks, so you may need additional insurance to get protection similar to a standard homeowners policy.
Is Florida Citizens a FAIR Plan?
Florida Citizens is better described as Florida’s insurer of last resort. It serves a similar purpose by providing insurance when qualifying private coverage is not available.
Can I leave a FAIR Plan later?
Yes. You can shop for regular private insurance again later if another insurer becomes willing to cover your home.
Bottom line
If your homeowners insurer won’t renew you, start looking for replacement coverage immediately.
First, ask why you were dropped and whether there is anything you can fix. Then compare quotes from other insurers.
If you still cannot find coverage, contact your state insurance department and ask about a FAIR Plan or another last-resort insurance program.
A FAIR Plan can be an important safety net, but check what it actually covers before buying it. The cheapest-looking option may not be the cheapest once you add the extra coverage you need.
