An insurance company may end your coverage, but only under certain circumstances. Coverage may be canceled or nonrenewed.

• Cancellation means the company ends your policy before the policy term expires.

• Nonrenewal means the company refuses to offer renewal when the current coverage expires.

Cancellation

When You Cancel Your Policy:

You may cancel your policy at any time by notifying the company and returning the policy to the company. Any unused premium will be refunded to you.

• You may have a penalty if you cancel the policy during the term of coverage.

When the Insurance Company Cancels Your Policy:

The insurance company may cancel your policy at any time for the following reasons. Any unused premium will be refunded to you as described below:

A) They can cancel if you don’t pay the premium or installment when it’s due.

• The insurance company can cancel your policy at any time by letting you know at least 10 days before the date of cancellation.

B) When the policy has been in effect for less than 60 days and is a new policy, the  insurance company may cancel at any time by letting you know at least 30 days before the effective date of the cancellation.

C) When the policy has been in effect for 60 days or more, or at renewal, your policy may be canceled for the following reasons:

• Insurance was obtained through fraudulent misrepresentation

• Risk has substantially changed since the policy was originally issued or was last renewed. This can be accomplished by notifying you in writing at least 30 days before the date the cancellation takes place

Can a Company Nonrenew My Policy, Even Though I Have Been Insured With the Company for Many Years?

Yes

There are no laws preventing the nonrenewal of a homeowners insurance policy.

• The only requirement is that the company provide you with at least 30 days written notice if it intends to nonrenew coverage.

Nonrenewal

Nonrenewal of your policy is always a company option.

• If a company is not going to renew your policy, it must give you a 30-day written notice before the expiration date of the policy.

To avoid cancellation or nonrenewal of your coverage, premium or installment payment for your homeowners insurance needs to be received by the insurance company on or before the due date.

This article is published on KansasMoney.gov. Find more information by contacting these state agencies:

Kansas Insurance Department
http://www.ksinsurance.org/
785-296-3071