Home insurance policies typically renew automatically, year after year, with few exceptions (like not paying the bill). If you receive a notice of non-renewal, this means that the insurance company is no longer willing to continue insuring your home as of the policy's expiration date.

Here is an explanation as to why you may have received a non-renewal notice for your NH homeowners' insurance policy and what steps to take if you do.

Why could I get a notice of non-renewal on my NH home insurance policy?

• Property conditions: older roof, dry rot, overhanging trees, or poor maintenance 
  
  
• Frequency of claims: multiple claims filed
  
  
• Increased liability risk: installation of a trampoline, tree house, or other hazard
  
  
• Changes in Underwriting Guidelines: Insurance companies periodically update their underwriting guidelines, and your home may no longer meet their new criteria
  
  
• Insurer’s Finances or Market Conditions: In less common cases, an insurance company may decide to non-renew policies in certain areas or for specific types of homes due to their own financial considerations, or if they decide to leave the personal insurance marketplace altogether. (Many NH insureds are being impacted by this when Main Street America, once an NH-domiciled carrier, decided they were no longer offering personal insurance products anywhere.)

What do I do when I receive a notice of nonrenewal from my Insurance company?

If you receive a non-renewal notice, call your agent right away to understand why and if there is anything you can do to withdraw the notice. As most insurance companies have to follow the regulations set by the NH Insurance Department, the company is supposed to give at least 30 days written notice to allow time to appeal, make repairs and/or shop for new coverage.

Here are some things you do when you receive a notice of nonrenewal from your home insurance company:

• Call your agent to find out why.
  
  
• Verify the reason is accurate. If not obvious, request proof.
  • Ex: company indicates your 7-year-old roof is in poor condition; however, the image provided is of a neighbor's house.
    
    
• See if you can fix the issue before the cancellation date. 
  • Ex: Loose railings along deck. Provide a paid receipt from a contractor showing repairs made, along with photos.
    
    
• Try negotiating: If a company is non-renewing due to claims frequency, see if they are willing to accept you taking more preventive action to avoid future losses and/or increase your deductible.
  • Ex: You filed two water losses in a year. Offer to increase your deductible to $5,000 and install water sensors.

• If your company is not willing to renew the policy, then an independent agent, like  HPM Insurance, typically represents many insurance companies, all with various underwriting guidelines and appetites. Independent agents also have access to surplus lines carriers, if necessary.

What is the big deal if my home insurance gets non-renewed?

• NH does not have a FAIR plan, like many other states. You can buy a policy from a nonstandard insurance company (aka: surplus lines). Still, the NH Insurance Dept does not oversee these companies, and the policies are often more expensive and have less coverage. That said, surplus lines is a viable alternative that can help provide coverage when working through the issue that caused the non-renewal.
  
  
• If you have a mortgage, but decide not to buy insurance, the bank will purchase a force-placed insurance policy on your behalf. Forced place insurance has historically been very costly and only covers the balance of your loan.

Can I not tell my new insurer that my previous policy was cancelled?

Not without serious risk. Insurance Companies share data, and if you knowingly answer the common question on an insurance application that you have never had a policy cancelled or non-renewed, that is considered a material misrepresentation (aka: fraud). If discovered, any claim you file could be denied as the company would not have otherwise written the policy.

Is there a difference between a notice of non-renewal vs. a cancellation notice on a NH home insurance policy?

Cancellation Notice: Each state has its own rules and regulations set by the Insurance Commissioner's office that regulates the insurance industry within it. In NH, if a policy is issued, the carrier has up to 90 days to cancel it; otherwise, it needs to wait until the policy's renewal date, with a few exceptions.  The few exceptions could include:

• Nonpayment of premium
  
  
• A material misrepresentation or fraud on the application. (Ex: Question about a business on premises answered as none, when one exists.)
  
  
• A significant property hazard or deterioration discovered by the insurer within the first 90 days, such as roof damage, dry rot, missing handrails, or other safety hazards.

Non-Renewal Notice: A non-renewal notice usually ceases coverage when your policy expires, until which time you usually still have coverage. 

The difference comes down to timing, but either way, you should try to resolve the issue, and if you can't, find a different company.

Where do I go to find a policy if my coverage is non-renewed?

When looking for homeowner's insurance, work with an independent agent who’s knowledgeable about homeowners' insurance and represents more than a few companies. A knowledgeable agent knows from experience which insurance company may be open to writing a policy that a different carrier cancelled.

When you have a direct company like USAA, Geico, or Amica, they may not be able to provide alternatives, as they don't represent multiple companies—the same thing with a captive agency like State Farm. 

Working with an independent agent like HPM Insurance, they can look into alternatives for you and tap into the non-standard market if necessary. 

Receiving a notice of non-renewal is stressful and feels personal. Having a plan and company options can help.