Insurance companies are known for calculating levels of risk. Any good insurance company wants its clients to receive coverage when they are able to meet all criteria, an insurance company will also cancel policies when they feel as though an insurance contract has been breached. Understanding the reasons why your insurance policy could be canceled could help you to prevent a series of mistakes that could prevent your claim from being denied or prevent the chance that your insurance may be canceled altogether.
There are many claims that result in a denial as a result of a pre-canceled policy. Companies can feel as though you are too great of a risk which could lead to your policy becoming void. In most cases, an insurance company will provide you with a notification if the level of risk has changed as a result of one of your lifestyle choices. If you are injured in an event that was caused by risk-taking behavior, it’s important to know how you can approach your insurance agent and how you can work at filing a claim without the insurance company potentially canceling your insurance.
If you are the type of person to engage in regular risk-taking behavior and you would like to make a claim, you might need to make an argument to your insurance company that the injuries that you’ve experienced or the problems that you’ve gone through, as a result of an underlying issue. Working to eliminate some of this risk-taking behavior from your lifestyle and trying to make your lifestyle safer could lead to your insurance rates not only falling but also making sure that you will not have a policy that’s at risk for cancellation.
If you plan on making any risky decisions at homes such as undergoing repairs or renovations, it helps to call your insurer first. Adding square footage to your home or undergoing a major plumbing renovation could put extra strain on your property. It’s also possible that adding extra square footage could change your policy so that you can cover the added value that you have put onto your home. Your policy could be canceled if you fail to make monthly payments or if you are making fraudulent claims regarding damages done to your home.
The Main Reasons Why Insurance Products Are Canceled Include
Not Paying Your Premiums
If property insurance or any type of insurance premium is regularly missed. Your insurance company could cancel your policy. Missing a few payments on your insurance could easily result in a cancellation and could mean that you’ll have to go to a different company to get insurance.
Your Existing Policy Needs To Update
Cancellations are sometimes within your control, if you are unable to change the situation under a current policy such as the eligibility criteria for your policy, you could have your policy canceled. Something as simple as failing to state a major upgrade for your home or misrepresenting the value of your home could even be seen as insurance fraud.
Upgrades can also come with material changes and this can be anything from upgrading your furnace to changing over your roofing materials. Your insurance policy only covers the assets that are currently in your home at the time that you sign up for the policy. When you don’t take the time to change over small details in your policy, you could face cancellations or even the chance that your insurance claim could be denied.
Keep some of these ideas in mind if you are interested in protecting yourself properly with insurance and you don’t want to get stuck with no insurance coverage.
This post was written by Kelly-Ann Jenkins of Jenkins Law P.L. Kelly-Anne is a property damage attorney. She focuses on insurance claims and property damage. The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your individual situation.
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