Reasons Home Insurance Can Be Prematurely Cancelled

Homeowners are generally a very responsible group of people, and insurance companies are prided on providing the services promised in a policy. While it is illegal for an insurance company to cancel a policy without reason, there are a few circumstances in which an insurance provider may cancel a policy before the contract date is reached.

Failure to pay premium – Failure to provide payment for services usually results in a loss of those services. So is true with insurance. If a homeowner does not pay their premium, their insurance will be revoked.

Fraud – Should a homeowner attempt fraud, an insurance company can immediately cancel coverage. Even before the contract date is up.

Misrepresents the home on the original insurance application – Insurance policies are carefully crafted terms that are designed to keep you and your assets protected. By misrepresenting your home, you’re doing your home a disservice as well as giving your insurance company cause to cancel your policy.

Abandons or allows the home to fall into disrepair – Insurance policies are designed to protect your investment. If you fail to protect your investment by allowing your home to fall into disrepair, the insurance agency has cause to cancel your policy.

These special cases for premature cancellation are situations in which most people would expect a policy to be cancelled. If you have any questions about policy cancellation, give your Viera insurance agent at Wayne Anthony Insurance a call today.