Can Insurance Drop Me After a Storm in Orlando?

For many, filing an insurance claim in Orlando is the first step toward recovery after a storm. But some policyholders are surprised to learn that their insurer may attempt to drop them after a storm-related claim.

At The Morgan Law Group, we say that understanding your rights in these situations is essential. As trusted storm insurance claims attorneys in Orlando, we help policyholders stand up against wrongful insurance practices, including the cancellation of their policy 

If you’ve filed a storm claim and fear losing your coverage, here’s what you need to know. 

What Does It Mean for Insurance to Drop a Policyholder?

When an insurer “drops” a policyholder, they are either cancelling the policy before it expires (cancellation) or refusing to renew it at the end of its term (non-renewal). Both actions can leave property owners without the coverage they need, especially when they’re still recovering from storm damage. 

It’s important to know that dropping a policyholder is a serious action regulated by Florida law. It often involves formal notice and a valid reason. In the context of storm damage, the idea that filing a claim can trigger cancellation or non-renewal might seem unfair, and in many cases, it is.

In Florida, property insurance companies are regulated closely due to the frequency of hurricanes, tropical storms, and wind events. Given the state’s volatile weather, laws are in place to protect policyholders from being dropped arbitrarily after they use their insurance for legitimate storm-related claims.

Prohibition to Drop Insurance Policy in Florida 

Many Orlando homeowners, condo owners, and business owners worry that filing a storm insurance claim will result in losing their coverage. While this fear is understandable and not entirely unfounded, Florida law provides certain protections against being dropped solely because of a legitimate claim.

Under Florida Statute 627.4133 and related regulations, insurers cannot cancel or non-renew a residential property insurance policy solely because of a claim resulting from an Act of God, which includes hurricanes, windstorms, and tropical storms. 

Additionally, if the Governor has declared a state of emergency due to the storm, insurance companies are prohibited from canceling or non-renewing policies until 90 days after repairs are completed. This gives property owners time to recover without losing vital protection in the middle of the process.

Florida’s Office of Insurance Regulation (OIR) also frequently issues emergency orders after major storms to freeze policy cancellations and non-renewals temporarily. These moratoriums serve to stabilize the market and ensure policyholders aren’t left vulnerable while recovering from catastrophic damage.

When Can Insurance Drop Me After a Storm?

Although Florida law limits when and how an insurer can drop a policyholder, there are still some scenarios where cancellation and non-renewal are allowed:

Cancellation

Insurance cancellation means your insurer is terminating your policy before its scheduled expiration date. Under Florida law, cancellation is only permitted for specific reasons after the policy has been in effect:

• Non-Payment of Premiums: Failure to pay premiums is the most common and legally valid reason for cancellation. If you miss a payment, your insurer can issue a cancellation notice with at least 10 days’ advance warning. 
• Material Misrepresentation or Fraud: If your insurer finds that you provided false or misleading information on your application or during the claims process. For instance, hiding pre-existing damage or inflating the value of repairs, they can cancel your policy. 
• Discovery of Uninsurable Risk: If the insurer discovers a substantial change in your property’s risk profile that makes it uninsurable, they may cancel.
• Withdrawal from Market or Line of Business: If an insurer decides to stop offering a certain type of coverage in Florida, they may cancel policies as part of a market exit. However, they must comply with regulatory requirements and provide adequate notice.

Non-Renewal 

Non-renewal occurs when your insurer decides not to continue your policy after its current term ends. 

While insurers have broader discretion here, they still must follow specific rules:

• Notice Requirements: For most homeowners’ insurance policies in Florida, your insurer must give you at least 120 days’ written notice of non-renewal. The notice must include a clear and valid reason for non-renewal.
• Excessive or Repeated Claims: If your property has a history of multiple claims over a short time, even if those claims are legitimate, your insurer may decide to non-renew your policy. However, a single storm-related claim cannot legally justify non-renewal by itself under Florida law. Insurers must show a pattern or broader risk exposure. 
• Property Condition and Risk Assessment: After inspecting your property post-claim, the insurer might determine that your home or building no longer meets their underwriting standards. This could be due to unrepaired damage, outdated roofing systems, or exposure to future storm risk. 
• Fraud or Breach of Policy Terms: Just as with cancellation, if there is evidence of fraud or if the policyholder has violated the terms of the policy, the insurer can lawfully refuse to renew. This often overlaps with cancellation scenarios but may be used to terminate the relationship at the policy’s end date rather than during its term.

Importantly, Florida law prohibits insurers from using a single storm damage claim as the only reason for non-renewal. If you’ve filed a claim for legitimate storm-related losses and otherwise met all obligations, your insurer cannot drop you just for using your policy.

What Can I Do if Insurance Suddenly Drop Me After a Storm?

If your insurer cancels or refuses to renew your policy after a storm claim, take the following steps to protect your rights:

1. Review the Cancellation Carefully

Insurers are required to send a written notice that includes the reason for the cancellation or non-renewal and must meet specific timing requirements.

2. Know Your Rights 

As a Florida policyholder, you are protected against unfair and retaliatory insurance practices. Filing a legitimate claim after storm damage your home is not legal grounds for termination. 

3. File a Complaint with the FLOIR

If you believe the cancellation or non-renewal was unlawful or retaliatory, report the insurer to the Florida OIR. They investigate complaints and have the power to enforce insurance regulations.

4. Contact an Attorney

If your policy was dropped unfairly, a storm damage claim attorney can evaluate your case, determine whether your insurer violated state law, and help you take legal action.

In some cases, improper cancellation or non-renewal can lead to a bad-faith insurance lawsuit. If the insurer knowingly acted against the state’s regulations or failed to give proper notice, they could be liable for damages beyond just the claim amount. 

5. Explore Other Coverage Options

If your policy is being non-renewed, don’t wait until the last minute. Begin seeking alternative coverage right away. 

Need Legal Help for Your Insurance Claim After a Storm?

If your insurer threatens to cancel or non-renew your policy after you’ve filed a legitimate storm claim, consult with a seasoned storm damage claim attorney in Orlando who understands Florida insurance law and can help you stand up for your rights.

The Morgan Law Group has extensive experience representing homeowners, condo owners, and business owners throughout Orlando and the state of Florida. If your insurer has acted unfairly, you may have legal grounds to contest their decision and seek compensation. 

Don’t let the fear of a dropped storm insurance claim stop you from protecting your property. If you’re facing challenges with your insurer, call us at (407) 449-8860 or contact us using our online form for a free consultation about your storm insurance claim at our office in Orlando.