Cancellation of Home Insurance Policy

by Tina
(Ontario)

We bought an older home in 1998. In 2004 our foundation collapsed. It was eventually repaired and our insurance canceled in Sept. 2009. Found another broker in Sept 2009 who agreed to cover us but we had to pay almost double our old pmt. Our home was inspected in Dec 2009 and in Feb. 25 2010 we received a registered letter dated Feb. 24 saying our policy would be canceled as of March 13 2010 for underwriting reasons. I immediately called my broker but he was not available. I am beside myself with worry that we will lose the house if I cannot find an insurance company to cover us especially with so little time to do so.


What does underwriting reasons mean?

Are there alternatives for finding insurance in Ontario for difficult to insure homes?

Thank You

Answer
Hi Tina
I am curious to know if the first cancellation in September 2009 was related to the foundation collapse? (Maybe you can comment on this?)

There are insurers that have "hard to place" homeowners policies. Insurance brokers should have access to two or three of them. They are not the big brand name insurers and the rates will be 3-4 times higher.

If your new policy in September 2009 was double the old payment that could mean that you already had a hard to place homeowners policy. Or more likely the first policy was simply a great rate.

Underwriting Reasons means that there is something about your home that does not meet the underwriting standards of the insurance company. In your case it could be the age of the house. Or maybe your wiring, plumbing or heating are not up to date. Generally it will be something that increases your odds of a claim.

It's disappointing that you have not been informed of the specific reasons. Hopefully your broker gets to the bottom of it for you.

If you do not get anywhere this week, post again here and include your email and I will see if I can put you in touch with someone. Make sure to include your email address (I will not put it on the site) so I can follow up. But please try your broker first or another local broker.

All the best

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Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

Please Read

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