Six Steps to Take if Your Insurer Sends You a Non-Renewal Letter

First and foremost, don't procrastinate. Let your insurer know you plan to fix whatever the issue is and then actually follow through on fixing it.

By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS

published 1 November 2024

in Features

A man looks concerned as he looks at a letter at his kitchen counter while his wife holds their baby behind him. — (Image credit: Getty Images)

The insurance industry is in a state of flux. This means that you may find yourself having to shop around for a new policy due to being non-renewed, a price increase you feel is unjustified or even because your insurance company is leaving the insurance business altogether. Here is what to do, step by step, if you receive a non-renewal letter.

1. As soon as the non-renewal letter is received

Don’t wait, don’t delay, do not pass Go to collect $200. It is time to take action on your own behalf. You are now on notice that your insurer plans to not renew or keep your policy at its expiration date. The clock is ticking, and state laws differ, but you have a short window of time to take action.

2. Look for the reason for the non-renewal

When you receive a letter of non-renewal from an insurance company, they will tell you why. You may not like or agree with the reason, but you should not see a letter bidding you a fond farewell without some explanation. State regulations differ on the amount of detail provided at this stage, but you should have something to work with. Assuming the issue is something you have control over and are willing to correct, you will need to follow these next steps.

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For the sake of discussion, let’s say your non-renewal is due to some physical condition of your home. Perhaps your roof has missing tiles, you have an empty pool in the backyard, or trees are overhanging your roof. We can dispense with the rationale for why these are hazards to you and, by extension, your insurer for now. Suffice it to say, one of these is the provided reason for the non-renewal notice from your insurer.

Upon reading this, you say to yourself, “Self, I can fix this!”

3. Let the agent or broker and insurer know of your plans

While mindreading is a skillset I do not personally possess, some may claim to. Don’t assume that your insurance company will somehow magically know that today, on this very day, you received the letter of non-renewal and took it upon yourself to address the conditions addressed as concerns. You may know it, your significant other may know it, your neighbors may even see a contractor hard at work putting a new roof on your house. After all, who can miss the repugnant smell of tar and the rumbling of the barrel spinning when the roofers are hard at work?

Email your insurance agent or broker immediately. Don’t wait until the work is done, don’t wait until you decide which contractor to work with — remember the clock is running, and the sooner you make your intentions known, the better. I suggest you email and keep any reply you get from your insurer or its reps. Sometimes things get lost in the shuffle, and being able to pull up an email to show you reached out is priceless.

Let the powers that be know that you are in receipt of the non-renewal notice and confirm you understand what the concern is. Let them know you are going to address the issue and get proof of the fix to them within a specific number of days. Yes, give a date — don’t say you’ll let them know soon, or as soon as you can. Put a date on it and stick with that date.

4. Fix it

You may think this goes without saying, but trust me, it does not. You need to address what was listed in your non-renewal letter. Remember, you’ve made a commitment to remedy the problem, so follow through. There will be no trickery here — if XYZ is listed as the problem, you commit to fixing XYZ, and you are going to need to fix X and Y and Z. Not X and Y and figure that’s enough and that Z is OK. It most certainly will not be enough. Fix. It. All.

5. Get proof to the insurer and agent or broker

Now that you’ve spent your hard-earned cash to fix the problem, take credit for it. You did as you promised, so flaunt it. Do not assume that the insurance company will send someone to inspect and verify the work is done simply because you said you would do it. Sadly, many homeowners claim to do work and then never actually do it. Insurers know this from experience and can’t afford to send an inspector for every alleged physical condition correction.

Take pictures. Lots of them. Take some video — heck, do both. Leave no doubt that what was there and concerning is no longer. Get the proof to both the insurance company and the agent or broker.

Keep the email confirming receipt of your proof. Keep it all. Always.

6. Confirm reinstatement of your policy

At long last, it is time to see the fruits of your labor. You need to contact your insurance company and your agent or broker to get confirmation that your policy is no longer being non-renewed. This can sometimes be called “rescinding a non-renewal notice” or “reinstating a policy previously set for non-renewal.” We’re insurance peeps — we love to put fancy names on simple items. Bottom line: Get proof that you will not be non-renewed.

Congratulations! Never forget that you have more power with your insurance policies than you may believe.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Karl Susman is a veteran insurance agency principal, nationally engaged insurance expert witness and broadcast host who translates insurance from jargon to judgment. For more than three decades, he's helped consumers, courts and policymakers navigate coverage, claims and compliance. As Principal of Susman Insurance Agency, Karl works directly with households and businesses to compare options and make clear, defensible coverage decisions.