Non-Renewal

What is a non-renewal in insurance?

A non-renewal is the insurance company’s formal decision not to continue your policy for another term at the end of its current policy period. It is not a mid-term cancellation — the coverage remains fully in force until the expiration date. After expiration, the carrier simply does not offer another policy, and replacement coverage must be in place by that date.

Why do insurance carriers non-renew policies?

Carriers non-renew policies for a range of reasons. Excessive claims frequency, two or more losses in a three-year window, is among the most common triggers for a homeowners non-renewal. A single very large claim, especially combined with other risk factors, can produce the same result. Other common reasons include discovery during an inspection of undisclosed hazards such as an old roof, a pool without a fence, or a dog breed the carrier considers high-risk. Significant changes in the risk profile after the original policy was issued can also prompt a non-renewal. So can a carrier’s strategic withdrawal from a state, a county, or an entire class of business — in that scenario, a policyholder can receive a non-renewal notice with a clean claims history simply because the carrier is exiting the market.

What does Georgia law require when a policy is non-renewed?

Non-renewals are governed by state law. In Georgia, carriers are required to give written notice at least 60 days before the expiration date for homeowners policies, giving policyholders a defined window to find alternative coverage. Georgia law does not require a carrier to provide a reason for non-renewing a policy that has been in force longer than 60 days, though many carriers state a reason as a matter of practice. Knowing the stated reason shapes how you shop for replacement coverage. A non-renewal tied to roof age calls for a different approach than one tied to claims frequency, as our guide on admitted vs. non-admitted carriers explains when discussing placement options in the standard market.

How does a non-renewal affect your placement options?

A non-renewal for underwriting appetite or claims history does not mean you are uninsurable — it means that specific carrier is no longer the right home for your risk. Shopping well before the expiration date, sharing the non-renewal notice and its stated reason, and matching the risk to carriers whose appetite fits the current profile all improve placement options. Waiting until the final days before expiration limits choices and may push placement into the surplus lines market when an admitted carrier solution might have been available with more time. Our guide on how carriers are selected explains what factors go into placing a risk after a non-renewal.

What should you do after receiving a non-renewal notice?

For example, if a carrier non-renews your homeowners policy because of two water-damage claims in three years, disclosing that claims history upfront during the replacement shopping process is the right approach — carriers who underwrite that profile require it, and withholding it risks a future non-renewal from the new carrier. For example, a policyholder whose carrier exits the Georgia market entirely can often secure equivalent coverage from another admitted carrier if they begin shopping with six or more weeks of lead time. A coverage review is the right starting point — as described in our overview of what a coverage review involves — so an advisor can assess the non-renewal, identify where your risk fits in the current market, and get replacement coverage in place before your expiration date.