What To Do If Your Home Insurance Is Canceled

Losing your homeowners insurance coverage—or being hit with a cancellation or nonrenewal notice—can feel like a disaster in itself. In Florida’s volatile insurance market, where rising costs and underwriting pullbacks are common, more and more homeowners are being left scrambling.

Yet, a cancellation or non renewal doesn’t have to leave you exposed. You still have rights, options, and steps you can take to restore protection or secure a new policy.

Below, we dive into how to navigate a cancellation or non renewal in Florida, what the state law requires, how to appeal or respond, how to shop smartly, and how to protect yourself from ever being dropped again.

1. Understand the different types of “drop”

Before you act, you must know exactly what kind of cancellation or termination you’re facing:

• Cancellation (midterm): The insurer is terminating the policy before the end of the term.

• Nonrenewal: The insurer is choosing not to renew the policy at its normal expiration.

• Rescission: A more extreme cancellation (often backdating) based on fraud or material misrepresentation, usually treated as if the policy never existed.

• Policy transfer / takeover: The insurer shifts the policy to another affiliated insurer or offers replacement coverage.

Florida law treats these differently and requires varying notice periods depending on which situation applies.

2. Know your rights under Florida law

Florida has specific statutory protections governing when and how an insurer may cancel or refuse to renew a homeowners or residential property policy. Key points include:

• For a cancellation (midterm), the insurer must provide 45 days’ written notice (except for nonpayment, which requires 10 days’ notice).

• If cancellation is due to nonpayment, the insurer must give at least 10 days’ notice and specify the reason.

• If nonrenewing a policy (end-of-term decision), the insurer generally must give 120 days’ notice of nonrenewal (with reasons).

• After a policy has been in force for 60 days, the insurer may only cancel for specific reasons: material misrepresentation, nonpayment, failure to satisfy underwriting requirements, or a substantial change in risk.

• If an insurer fails to provide the required notice, coverage may be extended until replacement coverage is in place or the notice period lapses.

• Then cancellation is not due to nonpayment, the insurer must return 100% of unearned premium.

• When cancellation or nonrenewal occurs in the wake of a hurricane or under a declared emergency, additional limits apply (e.g. insurer cannot cancel or nonrenew for 90 days after repairs, or during emergency windows).

Because Florida’s rules are strict and carry penalties, many cancellations or nonrenewals in Florida are scrutinized—and sometimes challengeable.

3. Immediately review the cancellation or nonrenewal notice

When you receive a written notice, do not panic—do the following:

• Read it carefully: It must include the effective date, the reason(s) for cancellation or nonrenewal, and instructions.

• Check the timing: Does the insurer meet the legal notice periods (45, 120, etc.)? If not, they may be violating Florida law.

• Look for remedy options: The notice might state conditions under which coverage could be reinstated (e.g. repairing defects) or appeals processes.

• Document everything: Save a copy of the notice (date received, method delivered), any correspondence, and take photos of your home’s current condition.

4. Contact your insurer or agent — and appeal

Once you understand the notice, your next step is to communicate:

1. Call your insurer or agent
   Ask why the cancellation or nonrenewal was initiated. Sometimes it’s for a reason you can fix (e.g. roof issues, maintenance, outdated wiring).

2. Ask if reinstatement or extension is possible
   In nonpayment cases, many insurers allow a courtesy or grace period to make payment and reinstate the policy.

3. Offer to remedy issues
   If the insurer cites defects (e.g. missing roof shingles, lack of wind mitigation), propose making repairs and ask for reconsideration. Some carriers may allow conditional continuation.

4. Put the request in writing
   Send a formal appeal or request for reconsideration via certified mail, including timelines and supporting documentation (invoices, photos, repair offers).

If the insurer refuses to reconsider, you’ll need to move forward with securing new coverage.

5. Shop promptly for replacement coverage

Because home insurance is often required by your mortgage lender, and because gaps in coverage expose you to risk, you must act fast. Here’s how:

• Get multiple quotes immediately
  Don’t wait; time is your enemy. Many Florida homeowners are attempting the same, so carriers may tighten deadlines or quote worse terms.

• Disclose the cancellation/nonrenewal
  Be transparent about the fact your former policy was dropped—omitting it can be construed as misrepresentation.

• Consider state-backed or last-resort options
  Citizens Property Insurance Corporation (Florida’s insurer of last resort) may be your fallback if no private insurer will accept you.

• Check eligibility for “take-out” or depopulation offers
  If you currently with Citizens, private carriers sometimes offer takeovers (depopulation) to transition your policy.

• Negotiate terms carefully
  Watch for exclusions (e.g. roof replacement required, higher windstorm deductibles), and weigh cost vs scope carefully.

• Time the effective date
  Aim to have the new policy start before or on the cancellation effective date to avoid coverage gaps.

6. Pay any owed unearned premium or refunds

If your insurer canceled (not you), they must refund 100% of unearned premium (prorated). 
If you canceled the policy, they may retain up to 10% of the unearned premium but must refund at least 90%.
If they fail to pay within the statutory timeframe, they may owe 8% interest.

Track these payments and follow up in writing if you don’t receive them.

7. Inform your mortgage lender and other parties

Your mortgage lender likely requires continuous homeowners insurance. If you’re dropped, the lender may purchase force-placed insurance, often at a steep price, and pass those costs to you.

Notify the lender that you’re working to secure replacement coverage and provide proof (declarations page) as soon as you have it. This can help avoid force-placement or reduce contested charges.

8. Strengthen your home’s insurability

To avoid future cancellations or premium hikes, invest in addressing risk factors. Common areas to fortify include:

• Roof condition: Replace or repair aging or compromised roofs; many insurers won’t accept a roof over a certain age.

• Wind mitigation upgrades: Install hurricane straps, secondary water barriers, impact-rated windows/doors, and shutters. These yield insurance credits.

• Preventive maintenance: Fix leaks, maintain plumbing/wiring, trim trees, ensure proper drainage.

• Home hardening programs: In Florida, programs like My Safe Florida Home offer grants for wind mitigation improvements.

• Install safety devices: Smoke detectors, sprinkler systems, deadbolt locks, alarm systems may reduce risk and premiums.

• Monitor claims behavior: If you’ve filed frequent claims, insurers may view your home as high-risk. Easing future claims or declining minor losses may help.

These improvements not only reduce your risk, but can make you more marketable to insurers.

9. Monitor your insurance market options

Because Florida’s insurance landscape is in flux, stay alert:

• Some insurers are exiting the Florida market, pulling back underwriting or exiting certain counties.

• New carriers may start writing in your area; stay in touch with your agent.

• Keep tabs on regulatory changes and emergency orders (e.g., prohibiting cancellations during storm recovery). Florida’s Office of Insurance Regulation often issues such orders.

• If you believe your cancellation or nonrenewal was unfair or violates state law, you can bring a complaint to Florida’s Office of Insurance Regulation (OIR).

10. Prevent future cancellations

Some proactive steps can reduce the risk of being dropped:

• Maintain good creditworthiness (if used by your insurer)

• Keep your home in excellent repair

• Avoid frequent or minor claims

• Stay informed of policy changes, underwriting guidelines, and windstorm exposure

• Reassess your policy annually

GreatFlorida Insurance is here to help you through tough times. Contact us for your home insurance needs.