Can Your Insurer Drop You After A Claim? Yes. This Is How It Works.

You had damage. You filed a claim. Now you are worried: are they going to dump me?

The short answer: yes, they can. But there are rules.

The Difference: Cancellation vs Non-Renewal

Cancellation = They end your policy DURING the term

Non-renewal = They do NOT renew your policy at the end of the term

Cancellation is harder for insurers. Non-renewal is easier.

When Can They Cancel (Mid-Policy)?

In Florida, an insurer can only cancel for:

• Non-payment — you did not pay
• Fraud — you lied on your application
• Material change in risk — you built something without reporting
• First 90 days — they can cancel without reason in the first 90 days

After a claim, they usually CANNOT cancel you directly. But they can decide not to renew.

Non-Renewal After A Claim

This is where it hurts.

Insurers in Florida can decide not to renew your policy. They must:

• Warn you 120 days in advance (before hurricane season)
• Or 100 days (rest of the year)
• Give a reason

Legitimate reasons for non-renewal:

• Too many claims (even if they are not your fault)
• Roof age
• Condition of your home
• They are leaving your entire ZIP code

How Many Claims Is Too Many?

There is no official number. What we see in Miami-Dade:

• 1 claim: usually no problem
• 2 claims in 3 years: increased risk of non-renewal
• 3+ claims in 5 years: high chance of non-renewal

The type of claim also matters. Water claims are viewed more strictly than wind claims after a hurricane.

The CLUE Database

Insurers share claim information through the CLUE database (Comprehensive Loss Underwriting Exchange).

This means:

• A new insurer sees your claim history
• Claims follow the HOUSE, not just you
• Claims remain visible for 5-7 years

If you are buying a house, request a CLUE report. You might find surprises.

What If You Get Dropped?

Options:

1. Shop with other insurers — some accept higher risks
2. Citizens Insurance — the "insurer of last resort"
3. Surplus lines — non-admitted insurers (often more expensive)

You have the right to 120 days of coverage after a non-renewal notice to find an alternative.

How Do You Prevent Non-Renewal?

Things that some homeowners do:

• Pay for small damages themselves (do not claim)
• Take a higher deductible
• Document preventive maintenance
• Wind mitigation improvements

Whether this is the right strategy for you depends on your situation.