A lot of people buy property insurance in North Carolina but there are those who struggle to secure coverage for their homes. This can happen for a plethora of different reasons and most of these are unclear or unknown to the majority of insurance shoppers. Finding out the reasons behind the cancellation or rejection of your insurance policy from carolina-insurance.net will make it easier for you to steer clear of these situations in order to keep yourself and your house protected.
Reasons Why Your Property Insurance in North Carolina Could Get Cancelled or Rejected
- Nonpayment – Your premium is basically the cost of your insurance. This is what you pay to be able to avail of the benefits of your coverage. If a person fails to make payments for their premium on a consistent basis, the insurance provider can and most probably will pull out their coverage. The number of missed payments allowable will be dictated by your insurance provider, so it’s best to discuss their limits before they pull out your policy. If and when you stop making premium payments, you should expect to receive a mailed notice informing you of the pending termination of your coverage.
- Criminal Conviction – If the insured is convicted of a crime, it is possible for the hazards under the policy to increase. That said, an insurance provider is allowed, under state law, to pull out their policy from the person convicted of a crime. A notice will be sent to the policyholder, but it is unlikely that an appeal could change the provider’s decision.
- Fraud – In the event that the policyholder makes use of the coverage to earn money or make a profit by faking the situation behind a claim, an insurance provider like this can and most probably will cancel the insurance policy. This is because people who commit fraud cost insurance providers money that they probably didn’t have to spend. Insurance fraud is punishable by law and will be permanently noted in a person’s history. This will make it impossible to avail of a new coverage without the insurance provider finding out about the incident.
- Physical Changes in the Property – There are certain changes that could occur to the house or property being insured that can make it uninsurable. These changes could either be made to the house itself or the surrounding areas. If and when your property is seen as more of a liability, your insurance provider can opt to reject your request for a policy or cancel the one you currently have.