Insurance company cancelled my homeowners policy?

Question

I just bought my first house 9 months ago, and I recently received a "notice of cancellation" from my homeowners insurance co. Reason given "there is mold growing above the garage, and per underwriting guidelines dwelling must be well maintained"; however, I had already cleaned the siding with mold growing before I even received the notice...it was a very small spot to begin with.

I don't believe the reason given was why they cancelled, or could it actually be?

Additional info...The premium has always been paid on time. The house is 28 years old brick house that is not located in a flood zone. I have never filed a claim.

Also, since they cancelled my policy will it be difficult to get coverage now?

Answer 1

It actually could be.

Yes, if you've been cancelled for mold, it's going to be darned hard to get another company to write you.

You need to call your agent, and take pictures of the siding with the mold cleaned off.  Ask them to intercede.  They should be willing to call the carrier, and try to convince them to keep you on.  Ask if there's something you can DO to show there isn't any mold any more - offer pictures.  

And then ask the agent, if there's possibly ANOTHER reason you can fix, about why they want to get off the house.  

That flood zone bit is irrelevant - as homeowners policies don't cover flood, anyway.

Answer 2

Unfortunately, insurance carriers have become more aggressive in canceling policies for "underwriting reasons." Based on the information you stated, you may be able to get the insurance company to rescind the cancellation.  

1) Contact the agent or insurance company and let them know you have corrected the problem.

2) Send  a letter and photos of the problem area to show what steps have been taken.

3) If you used a professional service; be sure to send copies of the invoice.

If they still refuse; ask for a copy of the specific policy language which specifies the carriers guideline for cancelling a policy.   You may be able to to file a complaint with your state's insurance department. (Do so only if the carrier does not have a legitimate reason to cancel)

Before the policy is set to expire. Obtain a replacement policy and be sure to explain why you were cancelled by your prior carrier. Again show the new carrier your photos and invoices proofing your diligence in correcting the problem.

If possible; try to insure your home and auto with the same insurance company.  This may help you obtain a multi-policy discount and give you a little extra consideration for insuring you.