Homeowner's Insurance

[ctsimpson]

i have owned my home in texas for almost one year. i received a notice recently from farmer's insurance stating they are cancelling my insurance because they can no longer afford to write the type of coverage i have due to the increased number of water damage/mold claims filed. since they are cancelling my insurance due to no fault of mine, am i due a refund of the premiums paid since i will never have an oportunity to file a claim against the policy. i have paid in reserves with no opportunity for any payout!

 

[ALawyer]

My sense is that they are simply not renewing it at the end of the policy period, not cancelling it before the end, as they generally can't do that and are bound for the policy period absent fraud or some other excluded event in the policy.

If the insurance company does cancel early for any reason it should refund the unearned permium, so that if it could cancel at the end of month 6 it should refund 1/2 of the premium on a year's policy. (If YOU chose to cancel -- say because you sold the house at the end of 6 months, it would refund a little bit less than 6 months premium because most policies have "short rated" refund provisions to enable them to recoup their sales and acquisition expense on the policy.)

 

[CUDALIS]

If you've had your home for almost 1 year, it sounds as if they're going to non renew the policy, in other words the policy will run until the 1 yr expiration; not cancel mid term. In that case, there is no unearned premium.