| If an insurance company refuses to issue a homeowners policy
or cancels or non-renews your policy, Virginia law requires
that the company tell you the reason why. If you are refused
insurance, make the request for the reasons. If you are denied
insurance based on incorrect information, the company is required
to allow you to copy its file concerning you and to correct
any incorrect information that the file may contain.
However, you may not be refused insurance solely because of
your age, sex, residence, race, color, creed, national origin,
ancestry, marital status or lawful occupation, including the
military service. Also, you may not be refused insurance:
- solely because of the age of your home;
- because you were denied insurance by another company; or
- because you purchased insurance through the Virginia Property
Insurance Association.
Also you should know that Virginia law prevents an insurance
company from canceling your owner-occupied homeowners policy
after the first 90 days except for specific reasons. This cancellation
law applies to your homeowners policy only if you own your own
home; it does not apply to renters policies. The specific reasons
for canceling your owner-occupied policy after the first 90
days are:
- failure to pay the premium for the policy when due;
- conviction of a crime arising out of acts increasing the
hazard insured against;
- discovery of fraud or material misrepresentation;
- willful or reckless acts or omissions increasing the hazard
insured against as determined from a physical inspection of
the insured premises; or
- physical changes in the property that result in the property
becoming uninsurable as determined from a physical inspection
of the insured premises.
An insurance company is allowed to non-renew your homeowners
policy at the end of a term for any reason if you are given
30 days written notice prior to the expiration date of your
policy. However, the company may not refuse to renew your policy
solely because of your age, sex, residence, race, color, creed,
national origin, ancestry, marital status or lawful occupation,
including the military service. Nor may the company non-renew
your policy solely because of any claim resulting primarily
from natural causes.
An insurance company that intends to cancel or non-renew your
homeowners policy must give you notice in writing stating the
termination date and the reason for termination. The notice
must also tell you that you have a right to appeal to the Insurance
Commissioner and that you might be eligible for insurance through
the Virginia Property Insurance Association.
The cancellation and non-renewal laws do not apply to renters
insurance. Check your renters policy or the applicable termination
provisions of call your agent or company if you have any questions. |
