Nonrenewal vs. Cancellation
By Natisha Quijano
There is a big difference between an insurance company canceling a policy and choosing not to renew it. In Florida, Insurance companies cannot cancel a policy that has been in force for more than 90 days except when:
- You fail to pay the premium
- You have committed fraud or made serious misrepresentations on your application.
Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires
An insurer issuing a policy providing coverage for property shall give the first-named insured written notice of cancellation or termination other than nonrenewal at least 45 days prior to the effective date of the cancellation or termination, including in the written notice the reason or reasons for the cancellation or termination.
When cancellation is for nonpayment of premium, at least 10 days’ written notice of cancellation accompanied by the reason therefor shall be given.
When such cancellation or termination occurs during the first 90 days during which the insurance is in force and the insurance is canceled or terminated for reasons other than nonpayment of premium, at least 20 days’ written notice of cancellation or termination accompanied by the reason therefor shall be given except where there has been a material misstatement or misrepresentation or failure to comply with the underwriting requirements established by the insurer.
After the policy has been in effect for 90 days, no such policy shall be canceled by the insurer except when there has been a material misstatement, a nonpayment of premium, a failure to comply with underwriting requirements established by the insurer within 90 days of the date of effectuation of coverage, or a substantial change in the risk covered by the policy or when the cancellation is for all insureds under such policies for a given class of insureds. This subsection does not apply to individually rated risks having a policy term of less than 90 days.
If an insurer fails to provide the 45-day or 20-day written notice required under this section, the coverage provided to the named insured shall remain in effect until 45 days after the notice is given or until the effective date of replacement coverage obtained by the named insured, whichever occurs first.
It’s important to know the difference between a non renewal and a cancellation. It’s also incredibly important to know the permitted bases for each. Too often homeowners withhold filing valid claims, under policies affording coverage that they have paid for, out of fear their carrier will “drop” them. Having this knowledge can help you move forward and get the coverage you deserve.
We are available 24/7 at (407) 478-4878.
Natisha Quijano, Esq.
Learn more about Natisha here!
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