Nonpayment Failing to pay premiums on time is a straightforward cause for cancellation.
False Information Providing inaccurate details on your application or renewal paperwork can lead to immediate cancellation.
Poor Property Maintenance Failing to keep up with necessary repairs (e.g., roof, plumbing, siding) signals risk to insurers.
Multiple Claims Frequent or large claims can raise red flags, suggesting your property or habits are high-risk.
Age of Your Roof Old or damaged roofs are more likely to develop leaks and other problems, prompting insurers to step away.
Poor Credit In many states, insurance companies look at credit scores as part of their overall risk assessment.
Living in a High-Risk Zone Areas prone to wildfires, hurricanes, or high crime rates are more expensive to insure, leading some companies to drop customers or avoid these areas altogether.
Pets Breeds considered aggressive or exotic pets that pose a bite or liability risk can cause insurers to cancel.
Age of Property Older homes may have outdated wiring, plumbing, or structural issues that raise insurance costs.
Company Leaving Your Area Sometimes, insurers pull out of markets entirely, leaving homeowners scrambling for alternatives.
Insurance Rules Specific to New Jersey
Cancellation Notice:
If a policy has been active for more than 60 days, insurance companies must give 30 days’ notice prior to cancellation.
If a policy has been active for less than 60 days, 10 days’ notice is required.
Nonrenewal Notice:
Insurers must provide a written notice at least 30 days before the policy’s expiration date if they decide not to renew.
These regulations are in place to protect homeowners, giving them time to address any issues or seek alternative coverage. However, even with these safeguards, cancellations and nonrenewals are on the rise.
What’s Fueling the Rise in Cancellations and Nonrenewals?
Advances in Technology Insurance companies can now use current satellite imagery and drones to inspect homes for issues like roof damage, debris, or other maintenance problems. This detailed level of surveillance makes it cheaper and easier for insurers to identify (and act on) potential risks without physically visiting your property.
Changes in Climate & Extreme Weather Events The frequency and severity of storms, wildfires, and other extreme weather events have been steadily increasing. Insurers are facing higher claim payouts, prompting them to tighten their underwriting standards, raise premiums, or discontinue coverage for certain areas.
What to Do if You Think You’ve Been Treated Unfairly
If you believe your policy has been unfairly cancelled or nonrenewed, you can contact the New Jersey Department of Banking and Insurance at (609) 292-7272. They can offer guidance on your rights and any further steps you may need to take.
Real Stories from New Jersey Homeowners
Below are some anonymized anecdotes from residents who’ve shared their experiences. While specific usernames and personal details have been removed for privacy, their stories highlight just how common and frustrating these cancellations have become:
Homeowner #1 “We received a letter stating we needed to replace our roof by a certain date. We complied and even had a signed contract. Despite replacing the roof promptly, the insurance company cancelled our policy anyway. Our new insurer then came out and claimed some tiles were ‘lifted.’ It turns out it’s just the style of roofing and that new roofs need time to settle, but we’re still in back-and-forth discussions.”
Homeowner #2 (Insurance Agent Perspective) “Yes, this is happening more frequently because insurance companies are using satellite imagery to identify homes needing repairs. Once they spot issues—especially with roofs—they’ll often send notices requiring repairs or risk cancellation.”
Homeowner #3 “They told us we had to put on a new roof by a certain time or they’d drop us. We knew the roof was overdue, but their ultimatum forced us to act fast. It ended up being the push we needed, but it was stressful to handle so quickly.”
Homeowner #4 “Carriers are losing money at an alarming rate. Some companies are trying to exit entire regions but can’t do it all at once. Instead, they ‘cherry-pick’ or ‘nitpick’ homes they deem too risky and drop them.”
Homeowner #5 “When we bought our house, the inspector warned us the roof would need replacing soon. About a month after closing, we got notice from our insurance company giving us 45 days to replace the roof or face cancellation. It was tight financially, but we had no choice but to replace it immediately.”
How Aura Home Exteriors Can Help
At Aura Home Exteriors, we’ve worked with several homeowners caught in the middle of insurance cancellations and nonrenewals. We understand that, beyond the paperwork, these cancellations can be incredibly stressful—both financially and emotionally. Our team specializes in exterior repairs and can help you:
Inspect your roof and siding to determine the extent of wear or damage.
Provide detailed documentation and photos to demonstrate compliance with insurer requests.
Perform high-quality repairs or replacements, so you can maintain coverage and protect your home.
If you find yourself in a tight spot, reach out to us for an inspection or consultation. Even if you’re not under the threat of cancellation, staying proactive can help ensure your home’s exterior meets insurance standards and remains in excellent condition.
Final Thoughts
Being dropped or nonrenewed by your homeowners insurance can feel like a worst-case scenario. However, knowing the common reasons, the specific rules in New Jersey, and the industry trends driving these decisions can help you take action and protect your property. If you feel you’ve been treated unfairly, don’t hesitate to contact the NJ Department of Banking and Insurance—and remember, proactive maintenance and regular check-ups can go a long way in keeping you and your home insured.
Have questions or concerns? Get in touch with Aura Home Exteriors today and let us help you safeguard your biggest investment.
Comments