[US] Can insurance companies decline to renew policies if there’s an imminent threat to property?
Imagine there’s a huge wildfire approaching, and my one-year policy is set to expire when the flames are just 100 feet away from my home. Can they really choose not to renew, leaving me in a tough spot?
Edit: Thanks for the responses! It turns out that a “notice of nonrenewal” is required. For example, in California, they must give 60 days’ notice, while in Arizona, it’s 30 days.
Yes, insurance companies can choose not to renew policies under certain circumstances, including imminent risks like a nearby wildfire. However, they must typically follow specific regulations regarding notice. As you’ve noted, in states like California and Arizona, insurers are required to provide a “notice of nonrenewal” within a certain time frame—60 days for California and 30 days for Arizona. This means they must inform you of their decision not to renew your policy before it expires.
During this notice period, you might have the opportunity to seek other coverage options. It’s always a good idea to review your policy and speak with your insurance agent to understand your rights and any potential options available to you in such situations.