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Insurance companies have been pulling out of high-risk markets across the United States. State Farm and Allstate stopped writing new homeowners policies in California. Several major carriers reduced or eliminated coverage in coastal Florida and Louisiana. If your insurer just sent you a non-renewal notice, you are not alone and you are not without options. Here is what to do immediately.
Cancellation vs Non-Renewal: Know the Difference
A cancellation ends your policy mid-term, typically because of non-payment or misrepresentation. A non-renewal means the insurer will not renew your policy when it expires. Non-renewals are more common and give you more time to find alternatives because they come with advance notice, typically 30-60 days depending on your state.
If you received a non-renewal notice, your coverage does not end immediately. You have time to act. Do not let the notice sit on your counter.
Step 1: Find Out Why You Were Non-Renewed
Insurers are required to provide a reason for non-renewal in most states. Common reasons:
- Your property is in a newly designated high-risk area (wildfire, flood, hurricane zone)
- The insurer is leaving your state or market entirely
- Your home has characteristics the insurer no longer covers (old roof, knob-and-tube wiring, certain dog breeds)
- Your claims history exceeded the insurer’s threshold
Knowing the reason tells you what to address when shopping for new coverage. If your roof age triggered the non-renewal, replacing it may open more carriers. If the insurer left your state entirely, you need to find who is still writing policies there.
Step 2: Contact an Independent Insurance Agent Immediately
Independent agents represent multiple carriers and can shop your coverage across companies simultaneously. This is different from a captive agent who works for one insurer. For a difficult-to-insure property, an independent agent with access to specialty markets (surplus lines carriers, Lloyd’s of London, regional specialty insurers) is significantly more useful than calling individual companies yourself.
Ask specifically about: specialty carriers like Lloyd’s syndicates, admitted vs non-admitted carriers in your state, and your state’s FAIR plan as a last resort.
Step 3: Apply for Your State’s FAIR Plan
Every state has a Fair Access to Insurance Requirements (FAIR) plan, a state-backed insurer of last resort for homeowners who cannot obtain coverage in the standard market. FAIR plans typically cost more than private market insurance and offer more limited coverage, but they ensure you can maintain the coverage your mortgage lender requires.
FAIR plans vary significantly by state. California’s FAIR plan has expanded coverage in recent years but still has lower limits and fewer endorsements than private market policies. Florida’s Citizens Property Insurance is similar. These are not ideal long-term solutions but they prevent a coverage gap that could trigger your mortgage lender’s force-placed insurance, which is even more expensive.
Step 4: Avoid Force-Placed Insurance at All Costs
If your home has a mortgage and you allow coverage to lapse, your lender will purchase force-placed insurance on your behalf and add the premium to your mortgage payment. Force-placed insurance typically costs 2-5x what you would pay for voluntary coverage and protects the lender, not you. It covers the structure but not your personal belongings and has no liability coverage. This is the worst possible outcome. Maintain continuous coverage even if it means using a more expensive FAIR plan or surplus lines policy temporarily.
Step 5: Make Your Home More Insurable
If your property characteristics triggered the non-renewal, addressing them expands your options:
- Old roof: The most common trigger. Many insurers will not cover roofs over 15-20 years old. A new roof can open doors to standard market carriers at significantly lower rates.
- Wildfire risk: Creating defensible space, clearing brush 30+ feet from the structure, using fire-resistant roofing and siding, and installing ember-resistant vents can qualify you for coverage from carriers that have re-entered the market with risk reduction requirements.
- Electrical or plumbing systems: Updating knob-and-tube wiring or galvanized pipes to modern standards addresses insurer concerns and reduces fire and water damage risk.
What to Do If You Have a Mortgage
Contact your mortgage servicer as soon as you receive a non-renewal notice. Inform them you are actively seeking replacement coverage and provide documentation of your search. Most servicers will give you 30-45 days to secure coverage before triggering force-placed insurance. Keeping them informed prevents surprises and gives you negotiating room on timing.
Sources: Insurance Information Institute non-renewal guidance; FAIR plan availability by state NAIC data; California FAIR plan coverage changes 2026; Consumer Federation of America insurance access report. This article is for informational purposes only. Consult a licensed insurance agent for coverage specific to your property and state.
