Nationwide Non-Renewals: What You Should Know
Nationwide recently announced that they will be issuing notices letting homeowners know they will not be renewing their insurance policy. Due to the frequency and severity of climate and weather-related losses, Nationwide and other insurance carriers have experienced increased pressure to rebalance their portfolios to ensure they have money in reserves to pay claims.
To offset these challenging trends, insurance carriers have turned to rate increases and non-rate actions like coverage reductions and stringent new policy requirements. In some cases, like Nationwide, carriers have determined they must non-renew insurance policies to maintain financial strength and stability.
There is some good news. There was notable legislative reform signed into law earlier this year that should improve the current state of the Florida insurance market. You can find out more about the legislation here. Although these changes promise a better future for Florida’s insurance market, the full positive impact won’t be apparent until 2025. Until then, we will continue to see rate increases and policy non-renewals from insurance companies.
What you should know if your home insurance is non-renewed by Nationwide
If your Nationwide home insurance policy is being non-renewed, you should know that insurance companies have implemented restrictive new requirements to qualify for a new policy.
Some insurance companies will only insure homes that are 10 years old or newer or have a roof that has been replaced in the last 10 years. Additionally, most carriers perform inspections of the home and require repairs to be made at the homeowner’s expense for any risks the carrier believes may cause a future claim.
To prepare for getting a new policy with a new insurance company, our agency recommends that you:
Have a 4-point inspection completed. Most insurance companies require a 4-point inspection to be completed for homes over 20 years old. An inspector will come to your home and inspect the 4 major home systems – the roof, plumbing, electrical, and heating/cooling system – to ensure they are in working order and good condition.
We encourage you to do your own research to find the best inspector for you, but below are some Tampa inspection companies our clients have used and given great reviews:
- AcuSystem Inspections – https://www.goacusystem.com/
- Robbins Services Home Inspections – https://www.robbinshomeinspections.com
- Murphy’s Law – https://www.murphyslawinspections.com/
- Inspection Depot – http://www.inspectiondepot.com/
Consider the age of your roof and water heater. Carriers are more selective than ever about the homes they will insure. One of the biggest changes to insurance company requirements is that most carriers won’t accept a roof over 10 years old or a water heater over 15 years old. Even if your roof or water heater is in good condition, if it does not meet the carrier’s age requirements, your policy options may be limited.
Maintain your home and plan for home repairs. Maintaining your home is essential for avoiding claims and meeting carrier requirements for a new policy. Anticipating unexpected repairs and planning for major updates can lessen the burden when these things come up. If your 4-point inspection notes any deficiencies or needs for repairs, make plans to address any issues, as you will be required to make those repairs before you can get a new policy.
FAQs about home insurance non-renewals
“I have never had a claim. Why am I being penalized for this?”
Unfortunately, challenges in the Florida property insurance market affect every homeowner in Florida. It’s a trickle-down effect. As the carriers experience increasing costs, they pass those costs down to policyholders in the form of rate increases or by not renewing some policies to manage their exposure, so they can remain financially stable in the future.
“Should I switch insurance carriers now?” “I don’t want to wait until my non-renewal date to move.”
Our recommendation would be to stay put for now. Carriers are raising rates across the board, so it’s likely the new policy will be more expensive than your current policy. By keeping your policy until it ends, you’ll save some money over the next few months.
Category: Home Insurance