Fire insurance, often included within homeowners insurance policies, is critical for protecting your property. However, under certain circumstances, your fire insurance coverage can be canceled in Texas. Understanding these situations can help you take preventive steps to maintain your policy.
Reasons for Policy Cancellation
Texas insurance companies have the option to revoke fire insurance policies during the term or decide not to extend them for particular reasons. One often occurring cause is non-payment of premiums. Ignoring a payment due date could cause instant cancellation.
Your coverage can also be revoked should the insurer find fraud or dishonesty during the application or claim filing procedure. Avoiding such problems depends on honest and accurate disclosure of your property information and any claims history.
Risk Factors Responsible for Non-Renewal
Insurance companies periodically review the hazards connected to insured properties. Should your house be judged at high risk for fire damage—especially in wildfire-prone regions—your insurer may decide not to extend your coverage. This choice can be influenced by elements such as closeness to wooded areas, lack of fire protection precautions, or increase in wildfire activity in your area.
Homes with outdated wiring, neglected maintenance, or significant damage from previous claims may also be flagged as higher risk. Regular upkeep and mitigating hazards can reduce the chances of non-renewal.
Legal Protections for Texas Policyholders
The Texas Department of Insurance (TDI) enforces regulations to protect homeowners from unfair cancellations. For example, an insurer cannot cancel your policy after it has been in effect for 60 days, except for specific reasons like fraud, misrepresentation, or significant risk increases.
Additionally, if your policy is canceled or non-renewed, the insurer must provide advance notice. For cancellations, the notice period is typically 10 days; for non-renewal, you should receive at least 30 days' notice.
What to Do If Your Policy Is Canceled
If your fire insurance coverage is canceled, act quickly. Contact your insurance company to understand the reason and see if you can rectify the issue. For instance, paying overdue premiums or addressing home safety concerns might help reinstate coverage.
Should the problem not be resolved, look at other insurance companies who might be ready to cover your property, maybe with better rates. Under the Texas FAIR Plan Association, a last-resort choice for homeowners unable to get insurance via regular carriers, high-risk properties can qualify for coverage.
Keeping fire insurance current in Texas calls for attention. Understanding possible hazards and following policy terms can help you to guarantee ongoing coverage.