Hurricane insurance is an important layer of protection for homes in Louisiana. Being without hurricane insurance due to the unfair actions of an insurer can leave you feeling vulnerable.
When an insurance company threatens to cancel coverage, quick action can help avoid significant financial risks. Louisiana law provides guidelines for insurance policies and protects homeowners from unfair cancellations.
Investigate the cancellation
The first step involves understanding why the company is threatening cancellation. Common reasons include missed premium payments, inaccurate information on the application or claims that exceed policy limits. Reviewing the policy and any recent communication from the insurer can clarify the issue.
Louisiana law requires insurers to provide written notice before canceling a homeowner’s policy. This notice must specify the reason for the cancellation and give you a chance to address the problem. For nonpayment of premiums, the insurer must give at least a 10-day notice. For other reasons, the notice period extends to 30 days. Ensuring the company follows these legal requirements can provide an opportunity to resolve the issue.
Address the issue quickly
Addressing the cancellation reason promptly can help keep coverage active. For example, if the issue involves missed payments, paying the overdue amount immediately may reinstate the policy. If the insurer claims that the property does not meet underwriting guidelines, repairs or improvements might satisfy their requirements.
Explore alternative action
If the insurer insists on cancellation, consider exploring alternative coverage options. The Louisiana Citizens Property Insurance Corporation provides insurance for residents who cannot find coverage in the private market. While this option can cost more, it ensures protection during hurricane season.
You also have the right to file a complaint with the Louisiana Department of Insurance. The department investigates complaints, ensures compliance with state laws and helps resolve disputes between insurers and policyholders. Providing detailed documentation of the cancellation notice and any related communication strengthens the case.
Staying informed about policy terms and acting quickly can help you protect your home when an insurance company threatens to cancel hurricane coverage. Louisiana law offers several safeguards, but proactive steps are essential to maintaining protection during the hurricane season.