My homeowners insurance dropped me

AffiliatePal is reader-supported. When you buy through links on our site, we may earn an affiliate commission.



Being dropped by your homeowners insurance can be a distressing experience. Suddenly losing coverage for your most valuable asset can leave you feeling vulnerable and uncertain about your financial security. In this article, we will explore the reasons why homeowners insurance companies may drop policyholders, the potential consequences of being dropped, and what steps you can take to address the situation.

Reasons for Being Dropped

Non-payment of premiums: One of the most common reasons why homeowners insurance companies drop policyholders is non-payment of premiums. If you fail to pay your premiums on time, your insurer may terminate your policy, leaving you without coverage. It is essential to stay on top of your payments to avoid this situation.

Increased risk: Insurance companies assess risk when determining whether to continue coverage for a policyholder. If your property has undergone significant changes that increase the risk of a claim, such as installing a swimming pool or running a home-based business, your insurer may choose to drop you. Similarly, if you have filed multiple claims in a short period, it may raise red flags and lead to your policy being canceled.

Changes in underwriting guidelines: Insurance companies periodically review their underwriting guidelines, which are the criteria they use to evaluate policyholders. If you no longer meet their updated guidelines, they may decide to drop you as a policyholder. These changes could be due to shifts in the insurance market or the company’s risk appetite.

Consequences of Being Dropped

Loss of coverage: The most immediate consequence of being dropped by your homeowners insurance is the loss of coverage. Without insurance, you are responsible for any damages or losses that may occur to your property. This can be financially devastating, especially in the event of a major disaster or accident.

Difficulty finding new coverage: Once you have been dropped by one insurance company, it can be challenging to find another willing to provide coverage. Being dropped may label you as a high-risk policyholder, making it more difficult to secure a new policy. In some cases, you may have to turn to specialized insurers who offer coverage for high-risk properties, but this often comes at a higher cost.

Impact on mortgage and legal obligations: If you have a mortgage on your property, your lender will likely require you to maintain homeowners insurance. Being dropped by your insurer can put you in violation of your mortgage agreement, potentially leading to legal consequences. It is crucial to address the situation promptly to avoid any legal or financial complications.

Addressing the Situation

Contact your insurance company: If you have been dropped by your homeowners insurance, the first step is to contact your insurance company to understand the reason for the cancellation. They may be able to provide insights or offer alternative solutions. In some cases, it may be possible to rectify the issue and reinstate your coverage.

Shop for new coverage: If reinstatement is not an option, you will need to start shopping for a new homeowners insurance policy. Look for reputable insurance companies that specialize in high-risk properties if necessary. It is crucial to disclose any relevant information about your property to ensure accurate quotes and avoid future issues.

Consider an insurance agent: Working with an independent insurance agent can be beneficial in finding coverage after being dropped. They have access to multiple insurance companies and can help navigate the complexities of the insurance market. An agent can assist in finding the best coverage options for your specific needs and circumstances.


Being dropped by your homeowners insurance can have significant consequences, including the loss of coverage, difficulty finding new insurance, and potential legal obligations. It is essential to understand the reasons behind the cancellation and take appropriate steps to address the situation promptly. By contacting your insurance company, shopping for new coverage, and considering the assistance of an insurance agent, you can work towards securing the protection your home deserves.


– Insurance Information Institute:
– National Association of Insurance Commissioners:
– Investopedia: