Chapter 3.

Go back to guide index

Can my insurance policy be cancelled?

Yes, insurance policies can and do get cancelled. There is no contractual agreement that an insurance company has to renew your policy year after year. A policy can cancel for bad claims history, exposure management or non-payment of premium, just to name a few reasons.

Non-payment and bad claims history cancellations are fairly self-explanatory for the most part, whereas exposure management is more complicated and not something a home buyer is really expected to have knowledge of. Insurance companies typically calculate the amount of risk or exposure they have, based on the amount of policies they have per zip code. If the number of policies in a zip code is too high, a company can randomly non-renew policies to get to a manageable amount.

At times, companies will also have to reduce exposure in certain areas to meet new guidelines and will cancel a certain number of policies. There is nothing a homeowner can do to avoid this type of cancellation, but they will be notified well in advance and will have time to search out other options.

In the event of a major disaster, such as the multiple hurricanes of 2004 in Florida, certain areas are damaged heavily, some more than others. If a carrier had too much exposure or risk in that area, there is the chance they would be financially unable to pay all the claims and even become insolvent as happened in 2004. Therefore companies will limit and cancel coverage in certain areas to reduce their overall risk in the event of a disaster and ensure they will be able to pay claims.

PRIVACY POLICY

The privacy of our website visitor’s and our client's is very important to our company. We will respect your privacy and we will not share your information with advertining or marketing companies, and will not sell your information to any mailing lists. We only share your personal information with the companies and the individuals that are necessary in performing our business duties in acquiring and in servicing your insurance needs. Please feel free to contact us immediately if you have any questions about your privacy.

TERMS AND CONDITIONS OF USE

Information contained within this site is the property of Hoffman and Associates Insurance Company and is provided for consumers looking to purchase insurance. Any other use is prohibited. We are not responsible for errors and omissions on this web site. All information contained herein should be deemed reliable but not guaranteed, all representations are approximate, and individual verification is required. Please contact Hoffman Insurance Company at 321-751-2511 before making any purchase decisions based on information contained on this web site to check for validity. This content is copyrighted by Hoffman and Associates Insurance Company and will bring legal action on to anyone who copies the information contained here. PLEASE NOTE THAT COMPLETION OF A REQUEST FOR INFORMATION DOES NOT CONSTITUTE THE PURCHASE OF INSURANCE. NO COVERAGE MAY BE ADDED, CHANGED OR BOUND AS A RESULT OF SUBMITTING A REQUEST FOR INFORMATION. ALL COVERAGE MUST BE CONFIRMED BY THE AGENCY IN WRITING SUBJECT TO AN ACCEPTABLE SIG NED APPLICATION MEETING THE UNDERWRITING GUIDELINES OF THE INSURANCE COMPANY. Please read your policy carefully for your terms of coverage. No information in this website alters the terms of coverage in your individual policy. If you do not agree to these terms please exit this website

Looking for auto insurance?

Click here to get a quote today!