It’s often referred to as being “dropped” by your insurer. But that isn’t actually what happens, although it might feel like you’ve been tossed to the curb. There’s a clear distinction between a non-renewal and a cancellation of your insurance policy; the former refers to an insurance company’s decision not to assume your ongoing “risks” at the end of your policy term based on underwriting, while a cancellation can occur mid‑term for reasons such as non‑payment of premium, fraud, or “seriously misrepresent” information on your application, according to the Insurance Information Institute (III). State rules set the timelines and reasons for both; the National Association of Insurance Commissioners explains these consumer protections and how they vary by state in its guidance on cancellations and non‑renewals.
“Homeowners insurance companies don’t drop you,” said Lynne McChristian, a spokesperson for the III. “They might not renew your policy — and it’s usually for a good reason.”
The term “dropped” might connote an element of surprise in losing coverage with a particular insurer, but this is hardly the case. While specifics differ by state and line of insurance, regulators generally require written advance notice and a clear reason. For example, Florida statute generally requires at least 100 days’ notice for most residential property non‑renewals and provides a 90‑day protection from non‑renewal after hurricane damage while repairs are underway (Fla. Stat. §627.4133). New York law sets a 45–60 day non‑renewal notice window at or after its “required policy period” (N.Y. Ins. Law §3425), and Texas requires at least 60 days for homeowners (Texas Department of Insurance). California also imposes a one‑year disaster‑area moratorium on residential non‑renewals in ZIP codes within or adjacent to declared wildfire emergencies (Cal. Ins. Code §675.1). These windows give you time to ask your insurer about steps to keep your policy or to contact your state insurance department for help.
In most cases, insurers must tell you why they are declining to renew, and many states restrict certain reasons (for example, some limit non‑renewal solely for weather‑related or not‑at‑fault losses, or a single claim). Insurers also adjust underwriting appetites as market conditions change. That’s certainly simplifying the insurance process, but it helps show how both parties need to remain true to their respective ends of the bargain. This is why we recommend reading your state’s guidelines and consumer notices to see what qualifies as a non‑renewal and a cancellation and what rights you have to question or appeal the decision.
A non-renewal depends on you, the company’s underwriting policies, and its discretion (among other things)
It’s difficult to ascertain just how many claims it takes to tip you into non‑renewal territory, because insurers use underwriting to weigh your unique risk profile and the company’s appetite. Today, underwriting increasingly blends human judgment with data and automation: carriers use AI/ML triage, aerial/satellite imagery to validate roof age/condition, property hazard scores, and portfolio limits to decide eligibility, pricing, and terms; many also apply catastrophe or peril‑specific deductibles in high‑risk zones. Regulators simultaneously expect strong governance and transparency around these tools (NAIC AI model bulletin; Global Insurance Report 2025). Such an assessment also relies on your record or CLUE report, your location, and, where permitted, credit‑based information. Generally, more frequent or severe losses, higher‑hazard locations, and adverse credit tiers (where allowed) drive higher premiums and stricter underwriting.
A few reasons why an insurer might not renew your policy
Maintenance of your home
Non‑renewal decisions are case‑specific but often trace back to preventable risks. Insurers frequently flag aging roofs, persistent water leaks, outdated electrical panels/wiring, or wildfire‑exposed landscaping. The good news: targeted fixes can materially reduce loss risk and may help you keep coverage. Examples insurers and research organizations recommend include installing smart leak sensors and an automatic main water shutoff, proactively replacing supply hoses, maintaining gutters/drainage (III: Preventing Water Damage), upgrading to impact‑resistant or IBHS FORTIFIED Roof standards at re‑roof, and wildfire hardening such as a 0–5 ft noncombustible zone and ember‑resistant vents (IBHS Wildfire Prepared Home). Some states require insurers to offer mitigation discounts — for example, California’s Safer from Wildfires framework — and many carriers provide smart‑home device credits (Travelers smart‑home discount).
Say you have HO‑3 policies on two homes — one of which you later decide to vacate for several months without routine checks, leaving the home susceptible to water or theft. Depending on your state and insurer, an inspection could lead to a requirement to address hazards, add a vacancy endorsement, or switch to a dwelling fire form with different terms. If you’ll be away in cold weather, winterize proactively (e.g., drain exterior lines, insulate pipes, maintain heat) per Ready.gov. Of course, you can choose to decline and shop around, but if you pay a mortgage, your lender will likely require you to have insurance regardless.
Claims that are too frequent or too expensive
In some cases, filing one or two claims can cause your insurer to not renew you, but outcomes depend on severity, patterns, and state rules. Many states limit non‑renewal solely for weather‑related or not‑at‑fault losses or a single claim — for example, Texas consumer guidance notes restrictions on using certain weather claims to non‑renew (TDI), and Connecticut requires at least 60 days’ notice and limits some claims‑based non‑renewals (CGS §38a‑323). New York’s law sets a “required policy period” for certain personal lines and enumerates permissible non‑renewal reasons (§3425). If your recent losses materially exceed the premium collected or signal ongoing risk, a non‑renewal becomes more likely, especially if property conditions aren’t remediated.
Insurers also weigh fraud risk and loss inflation when reviewing frequent/high‑dollar claims. While background explainers like the III provide context, the most recent cross‑industry estimate puts total U.S. insurance fraud at about $308.6 billion annually (Coalition Against Insurance Fraud). The National Insurance Crime Bureau reported a 23% year‑over‑year increase in “questionable claims” referrals in 2022 with activity remaining elevated into 2023 (NICB). Federal enforcement actions underscore the scale of schemes in certain lines (e.g., DOJ’s nationwide health care fraud takedown alleging $2.75B in false claims; Department of Justice). These pressures reinforce conservative underwriting responses to repeated or severe losses.
A low credit score
The Federal Trade Commission conducted a study and found that lower credit scores are “effective predictors” of risk. In most states, insurers may use credit‑based insurance scores for homeowners and auto, subject to consumer protections (NAIC; III). Current benchmarks show large premium spreads by credit tier: for auto, poor credit typically increases average full‑coverage premiums roughly 60%–100% versus good/excellent credit (Bankrate 2025; NerdWallet 2024). For homeowners, national averages indicate roughly 75%–120% higher premiums for poor vs. excellent credit (Policygenius 2024). Some states restrict or ban credit in certain lines (for example, personal auto in California, Hawaii, and Massachusetts), so impacts vary widely by jurisdiction. Older consumer market studies, like according to The Zebra, illustrate historical dispersion; use current state‑specific rules to interpret today’s differences.
Just because you see a dip in your credit score doesn’t automatically mean your insurance company is going to not renew your policy. It might depend on the severity of your score and the measures you’re taking to bring it up, such as keeping balances low and paying debts on time and in full. Where credit is used, many states require disclosures and allow consumers to request re‑rating after credit improvement (NAIC: Credit‑Based Insurance Scores).
Location
If you live in an area prone to disasters such as hurricanes, tornadoes, extreme winds, hail, wildfire, or flooding, your insurer may consider you an increased risk. Costs and availability vary widely by state and hazard; recent years of elevated catastrophe losses have driven tighter property underwriting and higher catastrophe deductibles in many regions (Swiss Re Institute sigma). Historical resources like the average cost of homeowners insurance and maps of hurricane‑prone areas provide context, but current pricing reflects today’s hazard, inflation, and reinsurance conditions rather than older averages.
Wind and hail account for a large share of property damage claims. In high‑exposure areas, expect insurers to emphasize roof age/condition rules, use aerial imagery to verify risk, apply separate catastrophe deductibles (wind/hail or named‑storm), or adjust limits and terms — all common 2024–2025 underwriting practices documented across the market (industry reports).
Having certain breeds of dogs or pets
In the 1990s, the Centers for Disease Control (CDC) conducted a broad study that looked at “dangerous” breeds of dogs by dog‑bite‑related fatalities. Today, underwriting increasingly focuses on a dog’s behavior and bite history rather than breed in several states. Dog‑related injury claims remain significant: in 2023, insurers handled 19,062 claims totaling an estimated $1.12 billion, with an average cost per claim of $58,545 (III: Dog bite liability). Some states restrict breed‑based underwriting — for example, New York prohibits using breed in homeowners underwriting/rating while allowing consideration of a specific dog’s dangerous behavior (NY DFS Circular Letter No. 10); Illinois and Nevada have similar direction (NCSL). Major carriers signal the exposure’s scale — State Farm reported paying more than $240 million for dog‑related injury claims in 2023 (State Farm). If you have a dog with a prior incident, disclose it; some insurers apply animal‑liability sublimits or exclusions, while others may require higher liability limits or an umbrella.
Don’t always take it personally
A non‑renewed policy could have absolutely nothing to do with you. Insurers actively manage portfolios and reinsurance and may reduce exposure in certain regions or perils after multiple years of elevated catastrophe losses; they are also deploying AI‑assisted triage and richer hazard data to refine eligibility and terms (Swiss Re Institute; Global Insurance Report 2025). Even when availability tightens, states generally require advance notice, specific reasons, and information on your rights (NAIC: Cancellations and Non‑Renewals).
“Some companies may have different underwriting guidelines within their business where they might say ‘we will not insure people who have a dangerous breed of dog,’ for example,” McChristian said. “Or, ‘we are only going to take X amount — a percentage — of homes that are in high-risk, coastal areas’.”
Also, keep in mind that insurers want your money. So — even if you do pose certain risks, you’re not always guaranteed, or even likely, to be “dropped.” In many cases, companies will outline mitigation steps (e.g., roof repair, leak controls, defensible space), offer alternative deductibles (e.g., a wind/hail percentage deductible), or propose a different coverage form rather than ending the relationship outright. Read any non‑renewal notice carefully; states often require the specific reason and provide timelines to appeal or complain to your regulator (NAIC).
What you can do before and after a non-renewal, cancellation
Whether you’ve dealt with a non‑renewal or simply fear one, you can reduce risk and expand options. Maintain the property, act on inspection recommendations, and contact your insurer early to discuss what would satisfy eligibility. If you need help understanding your rights or options, reach out to your state insurance department (find yours via the NAIC directory).
Try to take an insurers’ recommendations post-inspection:
Insurers typically inspect at inception or renewal to validate coverage and check for hazards. High‑impact fixes they often recommend — and sometimes reward — include: repairing or replacing worn roofs and flashing; installing leak sensors and an automatic water shutoff; replacing aging supply hoses; addressing outdated electrical components; and, in wildfire‑prone areas, creating a 0–5 ft noncombustible zone and upgrading to ember‑resistant vents. Programs and standards to look for include IBHS FORTIFIED Roof, IBHS Wildfire Prepared Home, California’s Safer from Wildfires discounts, and smart‑home device incentives like leak detection/shutoff credits. Again — the insurer isn’t the only one with the right to not renew a policy.
Shop around:
The beauty of the insurance market is there are many, many players. If one declines to renew your policy, you have the opportunity to jump ship. This is also why it’s important to look at several insurers in your initial search for homeowners or auto insurance. You can start by taking stock of reputable providers available in your state. If you’ve gone through several providers and still can’t find coverage (maybe you live in a high‑risk area), ask your regulator about residual market options. FAIR Plans and similar mechanisms operate in most states but differ in scope and cost (NAIC: Residual Market Mechanisms). Examples include the fire‑only California FAIR Plan (often paired with a separate wrap policy), statewide last‑resort carriers like Florida Citizens and Louisiana Citizens, coastal wind‑only pools such as TWIA (Texas, with a 5% average rate increase effective 2025), and FAIR Plans in states like New York (NYPIUA) and Massachusetts (MPIUA). Some states are adding backstops for wildfire risks (e.g., Colorado program updates via the Colorado Division of Insurance). Do note, though, that FAIR plans are not offered in every state, coverage is often more limited than a standard HO‑3, and total cost can be higher — especially after adding companion policies or considering potential assessments/surcharges in certain programs.
The bottom line
McChristian recommends seeking an independent insurance agent who represents multiple companies to find the best policy for your situation in the event of a non‑renewal, or if you simply want to know of all your options. It’s their job to find you an alternative, she says.
“It’s not anything that should cause consumers worry [non-renewals], because insurance companies want to insure people,” McChristian said. “And there are all types of regulations that protect consumers from being caught unaware.”
