How to Handle a Letter of Non-Renewal from Your Insurance Company

Published Date: 10/18/2025

How to Handle a Letter of Non-Renewal from Your Insurance Company

Few things feel as unsettling as opening your mailbox and finding a letter of non-renewal from your insurance company. One day, you have coverage. The next, you’re being told it’s ending.

Across the country — and especially in California — these letters have become increasingly common as insurers adjust to rising costs, wildfire exposure, and regulatory constraints. But while a non-renewal can feel like a dead end, it’s actually a call to action.

Handled properly, it doesn’t have to mean losing coverage — or paying double for a new policy.

Here’s what a non-renewal means, why it happens, and how you can protect yourself when that notice arrives.

1. Understanding What a Non-Renewal Really Means

A non-renewal is when your insurance company decides not to continue your policy once it expires. It’s different from a cancellation, which terminates coverage mid-term.

Insurers are required by law to give advance notice — typically 45 to 75 days before your renewal date, depending on your state and policy type. The notice must include a reason for the non-renewal.

Common reasons include:

• Increased wildfire or flood risk in your area.
• Poor property condition or unresolved maintenance issues.
• Too many claims or high claim costs.
• Business decisions — such as an insurer exiting a specific market or region.

Receiving a non-renewal doesn’t mean you’ve done something wrong. Often, it’s part of broader underwriting changes. But it’s still your responsibility to respond quickly — especially if the issue is something within your control.

2. Step One: Identify the Reason for Non-Renewal

The first thing to do when you receive a non-renewal notice is to find out why.

The insurer must list a reason — sometimes in general terms like “fire risk,” “property condition,” or “market withdrawal.” Read the notice carefully.

If the reason involves something specific about your property — such as an overgrown yard, missing roof shingles, or unaddressed inspection findings — you may have a chance to fix it and get reinstated.

If it’s part of a company-wide exit from your ZIP code or state, reinstatement may not be possible, but understanding the cause helps you plan your next steps.

Pro Tip: Don’t guess. Contact your agent or broker immediately and ask for clarification in writing. This ensures you understand the insurer’s reasoning — and can prove later that you sought to resolve it.

3. Step Two: Verify and Confirm Details with Your Agent

Your next step is to talk directly with your insurance agent or broker.

They act as your advocate and can:

• Confirm whether the non-renewal is final or conditional.
• Find out if reinstatement is possible after certain repairs or documentation.
• Determine whether the issue stems from an inspection or underwriting review.

In many cases, non-renewals are triggered by property inspections — often conducted by drone or satellite imagery. A tree too close to your roof, peeling paint, or debris in your yard might have flagged the system.

Pro Tip: Ask your agent to see the inspection photos or report that led to the decision. You have the right to review this information and challenge inaccuracies.

4. Step Three: Take Corrective Action

If your non-renewal is based on a condition you can fix — such as clearing brush, trimming trees, replacing a roof, or installing safety features — act immediately.

Document everything:

• Take before-and-after photos of completed work.
• Keep receipts and invoices from contractors or vendors.
• Note dates of completion and any permit approvals if applicable.

Speed matters. Insurance companies typically provide a deadline for submitting proof of corrections before the non-renewal takes effect.

“Make sure you have receipts, photographs, everything you can to show that the issue has been resolved,” advises insurance expert Karl Susman.

The sooner you demonstrate compliance, the better your chances of keeping or reinstating your coverage.

5. Step Four: Submit Proof of Resolution

Once your improvements are complete, send your documentation directly to your agent, broker, or insurer’s underwriting department.

Include a short cover note summarizing:

• What was requested.
• What you did to resolve it.
• When and how you completed the work.

Attach your photos and receipts clearly labeled. Keep copies for your records.

If possible, confirm receipt by email and ask for written acknowledgment that your materials have been received and are under review.

Pro Tip: Follow up regularly — especially if your renewal date is approaching. Don’t assume silence means approval.

6. Step Five: Confirm Reinstatement or Seek Alternatives

Once your documentation is submitted, ask your agent to verify whether your policy can be reinstated.

If the insurer accepts your proof, they’ll typically rescind the non-renewal notice and renew your policy as planned.

If not, or if the company has exited your market altogether, you’ll need to secure replacement coverage immediately.

Your agent can help explore:

• Other private insurers still writing in your area.
• The California FAIR Plan (for fire-only coverage) plus a Difference in Conditions (DIC) policy for additional protection.
• Excess and surplus lines carriers, which specialize in high-risk properties.

While premiums may be higher, maintaining continuous coverage is critical. Lapses can make it harder — and more expensive — to get insured again later.

7. How to Prevent Future Non-Renewals

While some non-renewals are unavoidable, many can be prevented through proactive maintenance and documentation.

Here are a few strategies:

A. Keep Up with Property Maintenance

• Regularly clear brush, dead trees, and debris from around your home.
• Maintain defensible space if you live in wildfire-prone areas.
• Repair roofs, fences, and exterior paint promptly.

B. Communicate Changes

If you make major renovations or install fire-mitigation systems, notify your insurer. Improvements like Class A roofing, fire-resistant siding, or upgraded electrical systems can improve your risk profile.

C. Schedule Periodic Reviews

Meet with your agent annually to review your policy, coverage needs, and inspection records.

An annual check-in ensures you’re aware of potential red flags before they result in a non-renewal notice.

8. If You Believe the Non-Renewal Is Unfair

You have rights — and recourse.

If you believe your non-renewal is unjustified, you can file a complaint with your state’s Department of Insurance.

In California, for example, insurers are prohibited from non-renewing policies in certain areas affected by declared disasters for at least one year following the event (California Insurance Code Section 675.1).

If your non-renewal violates this rule or lacks valid justification, regulators can intervene.

Pro Tip: When filing a complaint, include copies of your policy, the non-renewal notice, correspondence, and proof of corrective action.

9. The Broader Context: Why Non-Renewals Are Increasing

The rise in non-renewals isn’t personal — it’s systemic.

California and several other states are grappling with insurance market instability. Catastrophic wildfires, inflation, and outdated regulations (like Proposition 103) have made underwriting in high-risk areas nearly impossible under current rate-approval rules.

As a result, insurers are cutting back to maintain solvency. The FAIR Plan, intended as a temporary safety net, has ballooned into a primary insurer for many homeowners.

Industry experts agree that reform is needed to restore stability — but until that happens, property owners must be proactive and informed.

“Non-renewal letters aren’t the end of the story,” Susman explains. “They’re the start of a process. If you stay organized and communicate early, you can often fix the issue and keep your coverage.”

10. Your Action Checklist

Here’s a quick summary of what to do if you receive a letter of non-renewal:

✅ Read the notice carefully. Identify the stated reason.
✅ Contact your agent or broker. Get clarification and confirm whether reinstatement is possible.
✅ Resolve any property issues. Document all repairs and mitigation steps.
✅ Submit proof promptly. Include receipts, photos, and a written summary.
✅ Follow up and confirm. Ensure your documentation has been received and reviewed.
✅ Secure alternate coverage if necessary — before your policy expires.
✅ Maintain continuous insurance. Avoid coverage gaps at all costs.

By following these steps, you can turn a potential coverage crisis into a manageable situation.

Final Thoughts

A non-renewal letter is not the end of your insurance journey — it’s a sign to take charge of it.

By understanding your rights, maintaining documentation, and working closely with your agent, you can often keep your policy or find suitable alternatives without interruption.

In today’s changing insurance landscape, information and action are your best protection.

So if that letter arrives — don’t panic. Read it, act quickly, and remember: you have options.