Does the insurance company have to prorate upon cancellation?

[noho]

What is the name of your state (only U.S. law)? California

When I cancel my policy, does the law require the company to prorate my fees so that I don't get screwed?

I was just told by my insurance rep that they are cancelling my insurance due to the hill behind my house. I suppose it is a fire risk even though the plants are a ways away. I have lived there for 7 months.

 

[Banned_Princess]

What is the name of your state (only U.S. law)? California

When I cancel my policy, does the law require the company to prorate my fees so that I don't get screwed?

if you have paid for the year, they will return to you the money they did not earn by keeping your policy.

I was just told by my insurance rep that they are cancelling my insurance due to the hill behind my house. I suppose it is a fire risk even though the plants are a ways away. I have lived there for 7 months.

well I suggest you get an insurance agent to help you get coverage. don't go without it, most mortgages require it and will force you into a high price, low coverage - coverage if you don't.

 

[noho]

if you have paid for the year, they will return to you the money they did not earn by keeping your policy.




well I suggest you get an insurance agent to help you get coverage. don't go without it, most mortgages require it and will force you into a high price, low coverage - coverage if you don't.

Thanks, I actually have until January to shop. It just pisses me off that they offered coverage and then backed out. I hope shopping around won't be too hard. I plan to clear the dead brush and clean the hill up beforehand.

If I wait until the end of the policy will the next insurance company know that I was cancelled for this and use it against me? In other words, is it better to cancel soon so that I am leaving on "good terms"?

 

[moburkes]

Look at your contract. There is a cancellation section that spells it all out. The policy fee is likely fully earned, which means that you won't get it back regardless of the cancellation reason. In most states underwriting cancellations are prorata. In all states non-payment cancellations are prorata. But if YOU choose to cancel the policy then it could be a short rate cancellation.

So, if you cancel before they cancel you, you could be penalized. If you're not being cancelled until January, it sounds like a non-renewal instead of a cancellation. Most states only require 45 to 60 days notice, which means that you'd be cancelled before January.

 

[noho]

Look at your contract. There is a cancellation section that spells it all out. The policy fee is likely fully earned, which means that you won't get it back regardless of the cancellation reason. In most states underwriting cancellations are prorata. In all states non-payment cancellations are prorata. But if YOU choose to cancel the policy then it could be a short rate cancellation.

So, if you cancel before they cancel you, you could be penalized. If you're not being cancelled until January, it sounds like a non-renewal instead of a cancellation. Most states only require 45 to 60 days notice, which means that you'd be cancelled before January.

I am not clear on your post. I was informed over the phone when inquiring about adding a vehicle to my policy yesterday that the home insurance policy will end in January. So they have not informed me in writing yet. So it is sounding like a non renewal correct? Also, wouldn't the company have to spell it out as to the reason why I was cancelled instead of just "They don't like your hill"? I assume they were referring to the plants growing there and decided to back out for fire hazard reasons. But wouldn't they have to say that in the cancellation letter if they were to cancel me? I'm getting pretty paranoid that it will be tough to get insurance.

 

[antrc170]

I am not clear on your post. I was informed over the phone when inquiring about adding a vehicle to my policy yesterday that the home insurance policy will end in January. So they have not informed me in writing yet. So it is sounding like a non renewal correct? Also, wouldn't the company have to spell it out as to the reason why I was cancelled instead of just "They don't like your hill"? I assume they were referring to the plants growing there and decided to back out for fire hazard reasons. But wouldn't they have to say that in the cancellation letter if they were to cancel me? I'm getting pretty paranoid that it will be tough to get insurance.

It sounds like your home insurance company is declining or will be declining to renew your contract for the year 2012 as you are covered until through the end of this year. You need to find new insurance to take over on Jan. 1 (or when your coverage ends, whichever comes first).

If the company decides to not renew your coverage no reason must be given. If they cancel your coverage, then they will probably give you a reason, but you need to check your contract on that. Does the contract address cancellation?