Renewal of home and auto insurance have different processes to follow. Yes, it may feel like an additional task to your already busy schedule. And believe me, when I say I know the feeling! Just thinking of another meticulous process that is needed to be done can be overwhelming. However, the renewal of your home and auto insurance is for you and your investment’s good.
So, to make you feel thrilled about renewing your home and car insurance just think that doing so can save your investments. Surely, being certain that you are properly insured no matter what happens can make your mind at ease!
How do homeowners insurance renewals work?
Your insurance company will contact you or send you an insurance renewal notice 30-40 days before your policy term ends. This letter will provide you with an option if you want to sign up for another contract under them. If you don’t sign the contract before your term ends, your insurer will usually automatically renew your policy. However, there is no option in home insurance for setting it up for automatic renewal.
Can your insurance provider terminate your contract?
Insurers are usually not allowed to terminate the policy more than 60 days after it was purchased. But, if you fail to pay your premiums or committed something illegal, like fraud, then your insurance company can terminate your service.
Isn’t it too much of a task to renew insurance at the end of the policy term?
This period is a very good opportunity for you to review your policy and update your coverages. You should always make sure that your policy is updated so that you will not be underinsured. Check your inventory or checklist for any additional stuff that you bought for your houses like appliances and furniture. Any additional things and features in your home must be listed. The same goes if you happen to remove something from your house. In other words, anything that can affect the current value of your home and personal property should be updated on your policy because it can affect the amount of your new insurance rate.
What are the things I should ask my insurance renewal agent?
Again, the insurance renewal date is always a good time for you to reassess your policy. So might as well take advantage of it! Ask questions like, are there any discounts you are eligible for? Are there any changes in your policy rates that you should know about? Are your coverages and deductibles still the same or not? Ask all the things that you think can help you get the right coverage at a pocket-friendly rate if possible!
Is there a possibility for home insurance not to pass for a renewal?
The answer is a big YES! Most states require insurers to notify the insured about non-renewal three months before the term ends. However, some states don’t require an explanation for nonrenewal. That being the case it is best to always check your state law about this matter as well as ask your insurance agent.
Reasons for nonrenewal:
- Too many claims were filed on your current contract- This is the most common reason why insurers let go of their clients. Always keep in mind that having too many claims means a bad record for any insurers!
- Your house became prone to perils – Due to a sudden change of climate, your house that was not at risk before from perils like wildfires and hurricanes can be at high-risk now. And by that, if your insurer thinks that your house is now in a peril-prone area, they can opt for nonrenewal.
- Your insurance company is no longer available in your area – Any company can no longer renew a contract if they need to close their service in the states where you live. This happens when companies need to cut down expenses by removing their line of business in a high-risk location.
If your house doesn’t pass for renewal, you need to look for a replacement policy as soon as possible. Remember, your mortgage company is a co-signer of your home insurance policy. That being said, they will also be informed of your nonrenewal. And if you are not able to find a new insurance provider until your policy ends, your mortgage company may put “lender-placed “ insurance on your house. This coverage is limited and expensive which is why it is better if you can find your new insurer before your term ends.
What are the reasons why my insurance rates went up?
Several factors can affect the amount of your home insurance. Some of the reasons are within your control such as renovations to upgrade your house and claims history. On the other hand, some factors are outside of your control. For example, perils due to climate change like wildfires, hurricanes, wind storms, and tornadoes are caused by sudden changes in the weather. Also, change your neighborhood’s surroundings. This means that before you had a safe neighborhood, but now since there are a lot of new establishments that were built near your house, theft and riots are suddenly happening all the time.
Auto insurance renewal
Auto insurance can have a policy term of 6 or 12 months. And unlike home insurance, some companies offer automatic renewal on auto insurance. It means that you just need to continue paying your insurance like before.
Moreover, renewing your policy with auto insurance is much easier than home insurance. Others even just do the renewal process online. Oftentimes, the insurer will just notify you by mail or email when your policy is about to end. You just need to
confirm if your basic info is still the same, if yes, then you can continue the renewal just like that.
How does auto insurance renewal work?
Typically, 30 days before your auto insurance expires, your insurer will send you an insurance renewal letter. This includes the information about your new car insurance premium, new insurance card, and new declaration page. Now you may wonder how the new rates have been calculated? Here are the factors:
- Your age
- Driving history
- Your claim history
- Your state’s claim history
For manual renewal
If after you receive your renewal letter and just continue paying your insurance without asking or doing anything, your policy will automatically renew. So just like in home insurance, although you are not set up for automatic renewal, since you do nothing after receiving the notice, automatic renewal will be done.
For automatic renewal
Many insurers of cars offer automatic renewal written into their policy term. This option is great and convenient for those who hate paperwork. But the downside of this is your rates may already go up without you noticing it. Hence, just make sure that even if you are set for automatic renewal, still check and read your new policy just like when you first
sign the contract.
Now, if all that you read about the new policy is okay with you, you don’t have to do anything. Just continue paying your insurance and keep the new insurance card that they will send. Though some insurers may require you to sign your personal
information or ask if all the basic information about you is still the same before they continue with the renewal.
Reasons why your auto insurance rates go up
During insurance renewal, there is always a chance that your rate may go up. And here are the reasons why:
- First, you have been in an accident and you are the one at fault.
- Second, you filed too many claims, or you have claims filed against you.
- Third, traffic violations
- Fourth, accident rates went up from where you live.
- Finally, you change your zip code.
These factors can contribute tremendously to the rate of your premiums. That is why as much as possible control the things that you can change like your file claims and violations by being cautious and responsible.
Overall, whether it be an automatic renewal of home and auto insurance or not, still the bottom line is you need your insurance always! Hence, checking for the best policy term that suits your needs is a must.
Contact us here at Team AIS in Denver, CO! We can help you with all the information that you need. Whether it is for home and auto insurance in Denver, Co, or other parts of the U.S., our team is here to guide you!