Understanding Property Insurance in New Jersey
Just because you’ve already bought your insurance doesn’t mean everything will be smooth sailing from there. The truth is, there are a bunch of things that could happen between buying your coverage and making your first claim. Understanding the potential changes that your insurance policy might go through will give you a better idea on what to expect and a better understanding of what you can do in the event that things don’t go according to plan.
Terminations, Cancellations, and Denials of Property Insurance in New Jersey
- Cancellation of New Policies – Did you know that an insurance provider like newjersey-insurance.net can actually cancel your policy without the need to supply you a valid reason for cancellation? The first 59 days after you buy your property insurance in New Jersey, your insurance provider can cancel your policy without having to give you a reason for the decision. This cancellation will become effective on the 10th day after you receive the notice of cancellation from your insurance provider.
- Renewal on Altered Terms – Sometimes, your insurance provider could renew your policy however impose a increased rate that will make it a little less favorable to the policyholder. The coverage terms may not be changed and the increased rate will only be made effective 60 days after you are informed of the alteration. Under some circumstances, the law will not allow rate increase if it is less than 25% of the original rate.
- Midterm Cancellation – This occurs when your insurance provider cancels your policy during the term and before the insurance contract’s expiration or renewal date. The only reason this can happen is if the insured does not pay their premium for a certain period of time or if there are terms in the policy that are not met. Any cancellation will only be effective 10 days after the delivery of the notice to the insured.
- Non-renewals – When your policy ends, your insurance provider will have the option to refuse renewing your insurance contract. The company should mail you the reason for non-renewal at least 60 days before the expiration date of your policy and outline why it is that they plan to deny you renewal. In this case, the insured will have to seek a different insurance provider to grant them their property insurance. If in case your insurance provider fails to give you a termination notice, they must continue giving you coverage under the same premium for at least 1 year.