There are few things worse than having your home insurance cancelled. It not only results in a loss of peace of mind but it also takes much time, effort, and resources in looking out for a new provider.
Home insurance can be cancelled by the insurer if you fail to realize the obligations and commitments stated in the policy document. However, it is mandatory for all insurance companies to send out a notice much in advance to the insured before the policy is cancelled. The notice must also explicitly state the reason for the cancellation of the policy.
However, there are some simple measures that you can follow to be protected from such an untoward incident of cancellation of home insurance.
In this blog, we discuss a few reasons that explain why home insurance policies can be cancelled, and what you can do to avoid such an unfavourable circumstance.
There is no risk of cancellation of home insurance if you apply for a few claims, even a huge one, occasionally or once in a few years. However, too many claims in a single year might result in the cancellation of the policy because you might be perceived as a high-risk customer and the insurer might not want to cover for you in future.
What can you do to avoid this?
Be aware of the amount that you are covered for and do not file a claim for every single expense that you incur for renovating or repairing your home. It would be a good idea to file those claims that are high value and crucial and pay for the others by yourself.
At the time of renewal of your policy, the insurer looks keenly at your payment history. Too many missed or late payments might not work well in your favour.
You must be aware, however, that most https://www.watania.ae/insurance companies do have a grace period of 30 days for you to pay the premium even if you have missed the original deadline. And, if you have paid within this grace period, there is a good likelihood that your insurance policy and all its benefits will be reinstated.
What can you do to avoid this?
Set reminders so that you avoid paying your premiums late. You can also set an automatic deduction facility from your account so that this situation does not occur.
While owning any type of pets might not result in the cancellation of home insurance, owning dangerous, ferocious, and exotic pets might increase the likelihood of cancellation. This is because the liability claims associated with such pets for reasons that include attacks and bites are considerably high.
What can you do to avoid this?
Speak to the insurer and check the list of pets that are included in the policy.
A few major risks or hazards to the insured home and property might result in the cancellation of your insurance. For instance, poorly maintained trees in the front yard can possess an explicit threat to the safety of your home. Similarly, broken window panes, old and rusty pipes, and damaged electric wires are risk factors.
Also, if your home is dilapidated beyond the risk that the insurer might be willing to cover, your home insurance can be cancelled.
What can you do to avoid this?
Service your home at regular intervals so that these obvious risks are mitigated.
Often, home insurance can be cancelled if the insurer notices that the home has been vacant for a long time. This is because such homes are more vulnerable to theft and burglary. Also, if an accident occurs in such homes, the likelihood of loss is very high.
For instance, if a fire mishap occurs in an uninhabited home, it is difficult to salvage the property. Neither will one be able to call the fire department nor can one call for any other help. Such factors will result in the house burning down completely, resulting in higher claims.
What can you do to avoid this?
Keep the insurer informed when you are leaving your home uninhabited for a period of more than one month.
If you have moved to a location that is considered high-risk by the insurer, your home insurance can be cancelled.
For instance, some geographies can be considered more prone to natural disasters such as earthquakes, wildfires, and hurricanes than others.
What can you do to avoid this?
Try to take measures to safeguard your home. For instance, if you follow steps to make your home fire-proof, even to some extent, it could help you retain your insurance.
Your policy might get cancelled if you have deliberately not revealed correct information, misrepresented facts, or made false declarations to either get a policy or get one on a low premium.
For instance, to avoid paying a high premium, if you have declared that your holiday home, which you visit only occasionally, is your permanent residence, you might be penalized.
What can you do to avoid this?
Be truthful and honest in declaring all the information when purchasing insurance.
You must remember that the insurer cannot cancel home insurance for any reason that has not been stated in your policy document. Hence, it is important to read the fine print and be aware of all the terms and conditions stated. If you have queries with any clause in the document, it is imperative that you ask the insurer to clear any misgivings that you might have.
Also, negotiating with the insurance company might stop it from cancelling your policy. So, do reach out to your insurer in the event that you receive a notice of cancellation to resolve any complaints that it might have against you.
