Nonrenewal notice decoder

Common phrases and what they usually mean

Insurers word letters differently, so treat these as general meanings. Your state may require more detail. When in doubt, ask the insurer in writing.

"Notice of nonrenewal"

Your policy will run to its expiration date and then end. You are covered until then. This is different from a cancellation.

"Notice of cancellation"

Your policy will end before its normal expiration date. Cancellation during a term is usually limited to specific reasons, like nonpayment or fraud, and has its own shorter notice period.

"Conditional renewal" or "renewal with changes"

The insurer will renew, but with changes such as a higher premium, a higher deductible, reduced coverage, or a new requirement like a roof repair. Read every change before you accept.

"Underwriting guidelines" or "no longer meets underwriting criteria"

The home no longer fits the rules the company uses to decide what it will insure. This is a category, not a reason. Ask which guideline and what fact about your home triggered it.

"Risk exceeds acceptable exposure" or "concentration of risk"

The insurer has decided it has too many policies in your area, often because of wildfire, hail or hurricane exposure. It may not be about your home at all. Other companies may still write it.

"Wildfire risk," "wildfire score," or "WUI"

The insurer's wildfire model rates your property as high risk. WUI means wildland urban interface, where homes meet brush or forest. Several states, including Utah, Colorado and Oregon, now require more detail in wildfire notices or give you a way to appeal. Check your state guide.

"Roof age" or "roof condition"

Age means the year the roof was installed. Condition means what an inspector saw. Some states limit decisions based on age alone. See roof-age rules.

"Property condition" or "inspection findings"

An inspector found something the insurer wants fixed, such as overhanging trees, debris, a damaged fence, or deferred maintenance. Ask for the report and photos. In some states, like Arizona, you may get a chance to fix it before the nonrenewal takes effect.

"Loss history" or "claims frequency"

Your claims are the reason. Some states limit this. Texas does not count weather claims toward its three-claims rule, Utah bars nonrenewal solely for one wind, hail or lightning claim in 36 months, and Louisiana generally bars it solely for act-of-God claims.

"Withdrawal from the market" or "discontinuing this program"

The insurer is leaving your state or region, or ending the policy type you have. It is about the company, not you. Shop right away. Some states require extra notice or regulator approval for market withdrawals.

"Moved to an affiliated company"

Your policy is being moved to a sister company. Your coverage or premium may change. New Mexico, for example, requires at least 30 days of notice with the new company's name and any premium or coverage change.

"Vacancy" or "unoccupied"

The insurer believes nobody lives in the home. Texas lists 60 days or more of vacancy as a common reason. If the home is occupied, tell the insurer in writing and provide proof.

"Actual cash value" or "ACV"

A claim pays the depreciated value, not the cost to replace with new. This shows up in renewal offers and in FAIR Plan policies.

"FAIR Plan"

A state-created insurer of last resort. Most of the states we cover have one. Utah and Arizona do not. FAIR Plan coverage is usually basic and pays actual cash value.

"Surplus lines" or "nonadmitted insurer"

An insurer that is not licensed in your state but is allowed to cover risks admitted insurers will not. Policies vary more, and they are usually not backed by your state's guaranty fund.

"Force-placed" or "lender-placed insurance"

Coverage your mortgage company buys if your policy lapses. It is usually expensive and protects the lender more than you. Avoid it by replacing coverage before the expiration date.

What to ask your insurer

1. What specific fact about my home caused this decision?
2. Is there anything I can fix to keep the policy, and by when?
3. Was a wildfire score or model used? What is my score and how can I appeal?
4. Can I see the inspection report and photos?
5. Is this decision about my home or about the company's business in my area?

Put the questions in writing and keep a copy. In Utah, for example, the insurer must answer a written request within 10 working days.

Still stuck?

Call us and we will help you read the letter and figure out next steps.