It is the peak of hurricane season and you receive an insurance “Notice of Nonrenewal…” now what? | Real Estate

“Don’t panic!”

Speaking from personal experience, receiving a letter from your property insurance carrier with the words “Notice of Nonrenewal” — a tamer way to say the policy will be canceled after the current 12-month period ends — can be a bit unnerving, especially during hurricane season or if your mortgage company requires year-round coverage.

So, what should you do first?

“Don’t panic!” said Jayden McCart, manager of the 35-year, family-owned McCart Insurance Agency in Palm Bay, just north of Vero Beach. “Call your local agent and talk to them.

Usually, if a home is well-maintained, they’ll issue a replacement policy, but it depends on what they are asking for. If it’s for a certain thing, like a roof or plumbing or electric, it may be able to be fixed before the (current) policy lapses.

“And, in some cases, companies have stopped writing policies, or reducing hurricane policies, so, in that case, you will have to look around.”

The thought of playing hopscotch through the maze of insurance companies, four-point inspections (including electrical and plumbing) and wind mitigation analysis can be daunting.

Going through an insurance broker might not, necessarily, be the way to go, McCart said.

“We’re (listed as) an Allstate company, but people think we just sell Allstate. We work with many other A-rated companies to get you the best (deal) for your situation,” he said.

The state-run Citizens Property Insurance also is an option, although its policies must be 20% or more less cost than your current policy. Citizens requires a four-point inspection for all dwellings more than 20 years old.

A report by The Balance, a national website that prides itself on experts who provide clear, practical advice on personal finance, notes that a canceled policy might mean a property owner could have trouble finding a new carrier or having to settle for one that is much more expensive.

Many homeowners in Florida received nonrenewal notices just before July 1 this year, prior to new state legislature regulations (signed by Gov. Ron DeSantis in late May) going into effect that could lower rates for customers in the next 12 to 18 months, some politicians said.

The new legislation prohibits insurers from automatically denying coverage if the roof is less than 15 years old. Homeowners with roofs 15 years or older would be allowed to get an inspection before insurers deny them coverage. If an inspection shows that a roof has at least five years of life remaining, insurers can’t refuse to issue a policy only based on the roof’s age, under the proposed legislation.

If a roof is more than 25% damaged, but already complies with the state’s 2007 building code, it would only have to be repaired by insurance companies, instead of fully replaced, under an exemption to the building code that the proposed legislation creates.

According to The Balance, the best way to plead your case to your insurance carrier is to offer concrete proof that things have changed. If things did not change, think of improving the situation, such as installing an alarm system if, say, your house was robbed twice. Or suggest a higher deductible to show you are willing to take on added risk and responsibility, the report said.

Every insurer is different, McCart said, and every case situation is different.

But, according to The Balance, the ratio of how much the insurance company has paid out in your claims vs. how much they have been able to collect in premiums from you will eventually come into play.

McCart’s ultimate advice? Make sure you’re covered for the basics, at least, such as fire and liability.

“I always recommend having coverage vs. not having it,” he said.