Policy Cancelled in Virginia? Know your Rights.
Denial of Coverage
You’ve completed your application for homeowners insurance and the company sends you a notice that you have been denied coverage – what now?
When an insurance company denies you coverage, it is important to know that you have rights within your state. Virginia Law requires that the company tell you the reason why – if you are not provided this information request an explanation of denial. If you have reason to believe the information is incorrect, you may request a copy of that company’s file and dispute the decision.
A company may never refuse to issue you an insurance policy based on the following factors (please note: laws and regulations may change according to your state of residence):
- Age, sex, race
- Color, creed, national origin, ancestry
- Marital status or lawful occupation, including military service
- Based on the age of your home
- Because you were denied insurance by another company; or
- Because you purchased insurance through the Virginia Property Insurance Association
Cancellation or Non-Renewal
An insurance company may cancel or non-renew your policy with 30 days written notice, only if it is after the first 90 days since the policy’s inception. It is important to note that this only applies to owner-occupied homeowners policies and not renters policies.
Some of the things that could put you at risk of being canceled by your insurance company include:
- Fraud or misrepresentation
- Failure to pay the premium for the policy
- Conviction of a crime arising out of acts increasing the hazard insured against
- Physical changes in the property that render it uninsurable (determined by a physical inspection)
If your policy is being canceled or non-renewed by your insurance company, the insured must be given prior written notice which includes the termination date and reason for termination.
If you believe the termination is unjust, you reserve the right to appeal to the Insurance Commissioner. Going forward, you may be eligible for insurance through the Virginia Property Insurance Association.
If you’ve been denied coverage or received a cancellation or non-renewal notice and would like assistance navigating your options, reach out to one of our agents or call our office.