What You Can Do if Your Insurance Company Cancels You
You might be able to address whatever reason your insurance company cites to non-renew your policy, but you'll need to act fast.

Relax, this isn’t going to be an article about cancel culture. I promise not to go there. Instead, let’s talk about a different type of cancellation — that being from your insurance company. Can an insurance company cancel your insurance policy or non-renew it at any time? What rights do you have if you receive the breakup letter in the mail? What can you do if you still love them and they don’t love you?
An insurance policy is a contract between you and the insurance company. I’m not an attorney, so without going into the details or specifics about contracts, let’s just look at it like it’s a simple deal. This deal says you agree to pay some money, and in exchange, if something occurs, the insurer agrees to pay you some money. At its most fundamental level, that’s what we’re agreeing to when we purchase an insurance product.
So moving along, you have made this purchase, or agreement, with an insurance company. And then one day you check your mailbox. OK, fine, you check your email. And you find this:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Dear You,
RE: Notice of Non-Renewal of Insurance Policy No. 1234
We regret to inform you that your insurance policy, number 1234 with Your Insurance Company, will not be renewed upon its expiration. This decision is in accordance with the terms and conditions of your policy and is based on the following reason(s):
- Reason for Non-Renewal: e.g., change in underwriting criteria, increased risk profile, non-compliance with policy terms, etc.
In compliance with California Insurance Code Section 678.1, we are providing you with this notice at least 60 days prior to the expiration date of your current policy. This will allow you adequate time to secure alternative insurance coverage.
The insurance company is breaking up with you! This is a sample of what your non-renewal letter may look like. It will usually provide your information, the insurer’s information and the state law requiring the notification. So that’s it? Nothing left to do? Well, not entirely.
Renewing your commitment
First, understand that insurance policies renew. This means that every year (for annual policies), both you and the insurance company get the opportunity to renew your vows. Meaning you get to shop around, see if you want to keep your policy or get another, and the insurer gets to decide if it wants to continue working with you. Turns out, state laws do vary, and you will have more flexibility than the insurer will. In this case, the company has decided for some reason not to continue insuring you.
But what if the reason you’re provided is something you can control? Perhaps the company is saying it cannot insure you because you have recently put in a pool and it is unfenced? Or maybe a large tree has had a growth spurt and now hangs traitorously over your roof? If it is something you are ready, willing and able to fix, then by all means, fix it. However, at this point, you are on notice from the insurer. It’s outta here, so if you plan to take actions, then you need to immediately — as in yesterday — let the insurance company know.
The moment you receive a letter like this, reach out to your insurer or agent or broker and tell them your intentions. Tell them you plan to remediate the issues that are causing your policy to be non-renewed. Time is of the essence here. Don’t just do the work and then, the day before your policy cancels, expect to pick up the phone and say, “Hey, y’all, we’re good, we’re cool. I fixed everything,” and have it matter. You need to tell the insurance company what you plan to do and follow up with proof of what you actually did do.
Don’t leave things until the last minute
Also, be sure that you get the work and the proof to the insurer well before the stated non-renewal date. Hey, we all have our computers to contend with, and insurance companies are not immune to the fussiness they can present. Once your policy is marked “to be canceled,” it takes time to change that status, and, gasp, a human being has to — wait for it — look at your proof of the work done and approve it, too. All of this takes time. Do not wait, do not pass Go, do not collect $200.
Try to remember this mantra if you receive a non-renewal notice: SCORE.
S = Speak with your agent/broker or insurance company
C = Confirm work that you are going to get done
O = Offer to do the work
R = Receive proof of the work done
E = Ensure the insurance company has this proof
I like to get things in writing — it tends to keep people honest (not saying by default this isn’t true). If you have it in writing, though, let’s simply say that people are less able to forget things they stated.
Now, remember not all non-renewals will provide a reason you can fix. Sometimes items required are simply not reasonable or possible for you to get done, in which case the countdown clock is ticking, and you should be jumping on the computer and/or leaving no stone unturned to find a new insurer to provide coverage for you.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Karl Susman is an insurance agency owner, insurance expert witness in state, federal and criminal courts, and radio talk show host. For more than 30 years, Karl has helped consumers understand the complex world of insurance. He provides actionable advice and distills complex insurance concepts into understandable options. He appears regularly in the media, offering commentary and analysis of insurance industry news, and advises lawmakers on legislation, programs and policies.
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman Published
-
Are You a Retirement Millionaire Too Scared To Spend?
If you are too scared to spend money in retirement, you may be saddled with regret. Here are three ways to safely enjoy your sizable retirement nest egg.
By Donna Fuscaldo Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
The Three Biggest Fears Keeping Retirees Up at Night
Here are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
By Pam Krueger Published
-
What Can a Donor-Advised Fund Do for You? (A Lot)
DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
By Julia Chu Published
-
Estate Planning When You Have International Assets
Estate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
By Kelsey M. Simasko, Esq. Published
-
Three Essential Estate Planning Steps to Protect Your Nest Egg
After dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
By Nicole Farbo, CFP® Published
-
Is Chasing the American Dream Ruining Your Financial Life?
Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
By Anthony Martin Published
-
Retiring With a Pension? Four Things to Know
The road to a secure retirement is slightly more intricate for people with pensions. Here are four key issues to consider to make the most out of yours.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
How to Teach Your Kids About the Tax Facts of Life
Taxes are unavoidable, so it's important to teach children what to expect. Also, does your child need to file a tax return for 2024? Find out here.
By Neale Godfrey, Financial Literacy Expert Published