Can an insurance nonrenew your policy in the middle of litigation.?

Question

The insurance comp. came out in June and denied a sinkhole claim on my home. We got a lawyer and since then have found out that we have sinkhole activity even a void under our home. Our insurance company wouldn't renew our policy and the bank wants to force insurance for 7,000.00 a year. Any insight would be helpful

Answer 1

yep.  they now know of a HUGE risk.  i hate to tell you but more than likely, your policy excludes this anyway.  you need to find another carrier and its going to be hard with the problem at hand. sorry

Answer 2

Yes they can.

Since the sink hole claim was reported they are now aware of an increased hazard that your home is subject to. As such, they have decided  that your home was too big a risk to insure and have chosen to non-renew.

You can look to find insurance with other companies but due to the sink hole activity - you may have a hard time finding any insurance company that is willing to accept the risk.  If you do find one willing to do it --- it's going to be expensive.