By nature, insurance companies are risk-averse. While they want their clients to receive coverage when applicable criteria are met, they will also cancel policies when they feel the insurance contract has been breached. Understanding the reasons why your property insurance policy may be canceled will help you steer clear of issues while also providing information if you feel your claim has been unfairly denied. The Balance offers the following reasons why policies are commonly canceled. 

Too many claims is a major reason for a canceled policy. In this case, the company may feel that you are too great of a risk, which could lead to your policy becoming null and void. Look at your claims history to determine if this approach is valid. For example, are all the claims linked to a covered peril? Are they the result of multiple events or one single occurrence? What is the cost of each claim? From here, you can determine how to approach your insurer about the issue. 

If claims resulted from certain factors that have since been addressed, you can make the argument to your insurance company that you’ve dealt with the underlying issue. You can also work to make your home a safer place. Maybe you can install a fire alarm or make changes to the roof or windows to prevent serious damage from occurring. Of course, there are other reasons why your policy may be at risk of cancelation. 

If you plan on making renovations or repairs to your home, let your insurer know first. Adding onto square footage or changing the value of the home will likely affect your policy and premiums. You may need to tweak your policy to ensure it meets your needs after repairs are complete. Your policy will also be canceled if you fail to make monthly payments or if you make fraudulent claims about damage to your home.