Why do home insurance nonrenewals keep happening, and what can I do?
PUBLISHED · LAST UPDATED · RESEARCHED AND COMPILED BY EMIO Staff · INDEPENDENTLY REVIEWED BY Brian Joyner, A LICENSED P&C BROKER, PER OUR EDITORIAL STANDARDS · INFORMATION IS FOR EDUCATIONAL USE ONLY AND DOES NOT CONSTITUTE PROFESSIONAL ADVICE · REPORT AN ERROR
Insurers are increasingly declining to renew homeowners policies in higher-risk areas — nonrenewal rates tripled in the 15 highest-risk states between 2018 and 2024, and several major national insurers have paused or stopped writing new property policies in some states entirely. If you've been nonrenewed, your state's FAIR Plan may be your fastest path to coverage while you shop the standard and specialty markets for a replacement.
Why insurers nonrenew policies
- Rising claims costs and reinsurance expenses reduce insurers' appetite for property risk.
- A large-loss year for an insurer tends to raise nonrenewal rates further the following year.
- Some carriers pause or exit entire state markets rather than adjust rates property-by-property.
- Properties in high-hazard areas (wildfire, hurricane, flood-adjacent) are typically affected first.
What to do if you're nonrenewed
- Get proof of nonrenewal and its effective date in writing.
- Ask about your state's FAIR Plan or residual-market option as interim coverage.
- Compare a DIC/wraparound policy to fill FAIR Plan coverage gaps.
- Work with an independent agent who can shop multiple carriers rather than a single insurer.
Connect with a licensed agent to compare your options rather than defaulting to whichever plan your last insurer offered.