It usually arrives in an ordinary envelope: a letter from your insurance company saying it will not renew your homeowners or auto policy when the current term ends. For many Pennsylvania households, from Erie to Allentown to the Philadelphia suburbs, a nonrenewal notice is the first time they have had to think hard about their insurance in years.
A nonrenewal is not the same as a cancellation, and it is not the end of the road. Here is a step-by-step checklist for what to do after you get one.
1. Read the notice carefully, all the way through
- Find the date your coverage ends. Write it on your calendar and set a reminder well before it.
- Look for the stated reason. Pennsylvania law generally requires insurers to give advance written notice and a reason for nonrenewing personal auto and homeowners policies.
- Check whether it applies to one policy or several. If your home and auto are bundled, losing one can affect the other.
2. Understand the difference between nonrenewal and cancellation
A cancellation ends a policy during its term, often for nonpayment or misrepresentation. A nonrenewal means the insurer will honor the policy to the end of its term but will not offer a new one. Your coverage stays in force until the end date on the notice, as long as premiums are paid.
3. Figure out why it happened
Common reasons include:
- Several claims in a short period
- The condition of the roof, wiring, plumbing or heating system
- Changes in how the home is used, such as renting it out or leaving it vacant
- A change in the household’s driving record
- The insurer reducing how much business it writes in an area or a product line
Some of these you can fix. Some have nothing to do with you.
4. Ask questions if the reason seems wrong
If the notice says your roof is in poor condition but you replaced it two years ago, gather the invoice and photos. If a claim listed on your record was never paid or was not yours, ask for details. Mistakes happen, and an agent can help you ask the insurer to take another look.
5. Know where to turn with concerns
The Pennsylvania Insurance Department regulates insurers in the state. It publishes consumer guides, explains your rights around cancellation and nonrenewal, and accepts complaints if you believe an insurer did not follow the rules. You can also find general information from the National Association of Insurance Commissioners.
6. Start shopping early
Do not wait until the week your policy ends. Underwriting, inspections and paperwork take time, especially for homes. If you have a mortgage, your lender requires continuous homeowners coverage. A gap could lead the lender to place its own coverage on the home, which typically protects the lender’s interest rather than yours and can be more expensive.
7. Fix what you can
- Get estimates for repairs the insurer flagged.
- Collect receipts and photos for upgrades you have already made, such as a new roof, electrical panel or water heater.
- Pull together your claims history and driving records.
These records help a new insurer understand your risk.
8. Work with an independent agent
A captive agent can only offer one company’s policies. An independent agent can take your information to several insurers that may view your situation differently. Coverage terms, deductibles and exclusions can vary from one company to the next, so compare more than just the bottom line.
9. Confirm the new policy is in place before the old one ends
Make sure your new policy’s start date matches the old policy’s end date, update your lender if you have one, and keep proof of the new coverage handy.
Peak Insurance can help
Peak Insurance is an independent agency working with 60+ carriers and licensed across Pennsylvania. If you received a nonrenewal notice, we can review it with you and look at your options. Visit our Pennsylvania insurance page or our home insurance page, call (855) 449-8552, or contact us.
