Can an insurance company cancel a homeowners insurance policy?
Yes, they can cancel policies and also choose not to renew policies once they expire. This can happen for a variety of reasons:
Failure to pay premiums
Giving false information to an insurer
Failure to meet fire or security codes or other recommendations
Failure to meet established safety guidelines, like removing pools or trampolines
Filing too many claims
Failure to repair home damage that protects from needing to filing claims
Increase in criminal activity within your neighborhood area
Is homeowners insurance tax deductible?
No, homeowners insurance is a nondeductible expense. The only case in which it’s not is if part of the home is used home for business, then the square footage used for that purposes could be deductible.
Why is home insurance important?
Without homeowners insurance, you may be fully responsible for the costs of repairing damages to a home and for replacing belongings that get damaged or stolen. Also when applying for a home loan, most banks require that borrowers have home insurance. Banks treat these loans as investments and home insurance acts as a protection of these investments.
Does home insurance cover earthquake and damage caused by other natural disasters?
Earthquakes, floods, tornadoes, and other natural disasters are not typically covered by home insurance--there are separate insurance coverages for them that can be purchased.
What items does a home insurance policy not cover?
It does not cover anything dealing with vehicles or items within vehicles. Protection from natural disasters is also rarely covered automatically.