What’s the difference between cancellation and nonrenewal?
An insurance company cannot cancel a homeowner’s policy unless the premium is not paid or the homeowner has committed fraud or has made serious misrepresentations on his or her insurance application. An insurance company can choose not to renew a policy at its expiration. However, the company must give the homeowner ample notice and an explanation for the nonrenewal. If your policy has been terminated, you should find out whether it has been cancelled (and why) or simply has not been renewed.
