Cancelled Mid-Term? Not Every Change Allows an Insurer to End Coverage

A homeowner contacted our office after receiving notice that their property insurance policy would be cancelled mid-term. The decision arose after discussions with the insurer regarding details of the home's electrical system. Although the insurer determined the property did not meet its underwriting appetite, the consumer had not withheld information and was unaware that the insurer's records differed from the actual characteristics of the home.

After reviewing the circumstances, our office raised concerns about whether the cancellation complied with the rules governing mid-term policy cancellations. Following further discussions, the insurer reviewed the matter and agreed to reinstate the policy.

Consumer takeaway: If your insurance policy is cancelled and you are unsure whether the cancellation was handled properly, ask for a clear explanation of the reason and seek clarification on the rules that support the decision. A review can sometimes lead to a different outcome.