Cancelled Homeowners Insurance: It’s Not Just Storms
The risk of storms and flooding is one reason insurance policies get cancelled, but it’s not the only one. You can guess at some—late payments, old roofs, trees in unfortunate places—but others may surprise you.
Generally speaking, your insurance company can’t cancel your policy due to damaging storms. But it could stop writing policies in a high-risk area or pull out of a state altogether, as Floridians have seen before.
There are many reasons your insurance company might reject coverage, like poor home maintenance or too many claims filed. But, there there are some uncommon reasons policies can be cancelled too.
EXOTIC PETS MAKES SENSE…
Your homeowners insurance usually covers damage and injuries caused by your dog. That is, unless your dog belongs to a restricted breed, which varies by state and insurance company. Several insurers do not have dog restrictions, but breeds that commonly cause a rate hike or even cancellation include Akitas, Chow Chows, Dobermans, German Shepherds, Great Danes, Pit Bulls, Rottweilers and Siberian Huskies.
Next up is snakes and other exotic pets. Venomous snakes, boa constrictors and even ferrets are on many insurers’ exclusion list. Be sure and tell your insurance company, though. Your policy won’t necessarily be cancelled if a person is bitten, but if you never told the insurer you owned the pet, you would be responsible for all the medical bills.
BUT SOLAR PANELS?
Some insurance companies are dropping Florida homeowners with solar panels because of a clause in some Florida Power & Light contracts that says any damage caused by solar panels is the responsibility of the homeowner (and ultimately the homeowner’s insurance company). Damage could occur if, for example, a surge running through the solar panels damages other homes or even the power grid.
Insurance companies have also been known to deny coverage when a homeowner sells the extra power from their solar panels back to the electric company, a common practice called net metering.
AND ELECTRIC VEHICLES?
The innocent act of installing a charging station in your driveway or garage may get you cancelled. Even if it doesn’t, some states require liability coverage for the charging equipment, and some insurers want to see documentation proving the unit was installed correctly.
Hard-wired charging stations are usually considered part of your home, so will likely be covered in the event of a loss—for example, if the home’s wiring caused the charger to catch fire.
