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Nonrenewals and Insurers Leaving terms
Nonrenewals and Insurers Leaving in Homeowners Insurance: the news, the names and what changed.
Admitted insurerA company licensed by a state to sell insurance there, with its rates and forms under regulator review and its claims backed by the state guaranty fund.CancellationThe ending of a policy before its expiration date, either by the homeowner at any time or by the insurer for reasons the policy and state law allow.DepopulationA state program that moves policies out of a state-backed insurer and into private companies, shrinking the plan's exposure to the next catastrophe.Difference in conditions (DIC) policyA separate policy built to sit beside a primary policy and pay for perils and coverages the primary one leaves out, such as theft, water damage and liability.Excess and surplus linesThe specialty market where non-admitted insurers cover unusual, high-hazard or hard-to-place risks that standard carriers will not write at filed rates.FAIR planA state pool, funded by the insurers doing business there, that sells basic property coverage to owners who cannot find it in the regular market.Insurer of last resortA state-created or state-sponsored insurer that sells coverage to property owners who cannot get a policy from a private company.MoratoriumA temporary legal bar, triggered by a disaster declaration, on insurers canceling or declining to renew policies in the affected area.NonrenewalAn insurer's decision to end coverage at the end of the policy period by declining to offer another term, as opposed to ending it partway through.ReinstatementPutting a canceled or lapsed policy back in force after you pay what is owed and the insurer agrees, with or without a gap in coverage.Surplus lines insurerAn insurer not licensed in a state that may write risks the standard market declines, with freer rates and forms and usually no guaranty fund backing.Takeout policyThe private-market policy offered to a state-backed insurer's customer when a company takes over a block of that plan's policies.Underwriting guidelinesAn insurer's internal rules for which homes it will write, which it will decline, and what conditions, limits or surcharges apply to the ones it accepts.Wildfire risk scoreA number a modeling vendor assigns to a property to estimate its exposure to wildfire, which insurers use to accept, price or decline coverage.