Cancel, Non-renewal have different meanings for insurance

Cancel, Non-renewal have different meanings for insurance

Are you amongst the many Floridians who have recieved a letter from your insurance company saying it wouldn’t be renewing your covererage? If so, your first thought may be that the company has “canceled” your insurance. But there is a difference between cancelation and non-renewal.
Nonrenewal of an insurance policy means you still have coverage until the insurance contract expires. On the other hand, a cancellation means the coverage ends before the expected expiration date.
A property insurance policy is typically for a one-year term, and after that year passes, either you or your insurer may decide not to renew it. If the insurance company decides not to renew it, Florida statute on insurance contracts requires at least 45 days’ advance notice. The law also requires that you be given a reason the policy won’t be renewed. If the reason doesn’t make sense to you, call the insurance company for a more detailed explanation. And, if that answer raises even more questions or concern, talk to the state’s Division of Consumer Services.
Insurance companies in Florida can only cancel a policy that has been in force for more than 90 days if the policyholder:
    Failed to pay the premium,
    Committed fraud or made a material misrepresentation on the insurance application,
    Had a substantial change in the risk covered by the policy, or
    Had coverage with an insurer that is cancelling all such policies in a given class of insureds, such as if it is no longer handling that specific line of business.
In these instances, the insurer is required to provide… (Read More at III.Org…