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Licensed insurance companies can take up
to 90 days to decide whether you meet their underwriting
guidelines. Within this 90-day period, a company must give
you a 20-day notice of policy cancellation, except for
nonpayment of premiums, which requires a 10-day notice.
After 90 days, your company may cancel
your policy if:
 You
don't pay your premium
you
deliberately provide false information on your application
you
fail to follow the company's requirements or
you
increase your risks through new activities or home
improvements.
For reasons other
than nonpayment of premiums, the company must provide a
90-day notice before it may cancel your policy
Companies can always opt for nonrenewal
of your policy. This process also requires a 90-day notice.
When a company does renew your policy, it must give you a
45-day notice of the premium. Surplus lines companies must
give a 45-day notice of cancellation.
You may cancel your policy at any time.
You will receive a refund of unearned premiums, usually
minus a 10-percent penalty. However, canceling your
insurance may violate the terms of your loan contract.
If you are changing insurance policies or
companies, make sure that previous insurance does not expire
and leave a gap before the new policy takes effect.
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