Can the Insurance Company Cancel or Nonrenew My Residential Property Insurance?
After a residential property policy has been in effect for sixty days it can be cancelled for limited reasons specified in the California Insurance Code (CIC). The reasons include, nonpayment of premium, fraud, or material misrepresentation, or physical changes in the insured property that increase any hazard insured against. The company must mail or deliver a notice of cancellation to you at your last known address based on the number of days stated on the policy. The reason for cancellation must be disclosed on the notice. Effective January 1, 2004, the insurance company must mail or deliver a notice of cancellation at least 20 days prior to the effective date of cancellation, and 10 days for nonpayment of premium or for fraud. However, it is important to know that companies may sometimes provide more generous cancellation notification in their policies. If the policy provides for a cancellation notice period of longer than 20 days, the policy language will apply. A written notice of
