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Military Finances 101: Dropped From Your Home Insurance? Here's What to Do Next Thumbnail

Military Finances 101: Dropped From Your Home Insurance? Here's What to Do Next

Insurance Managing Your Finances

While on Active Duty, you move around a bunch, and you don't always own your home. Once you retire from Active Duty, you're much more likely to own your home. Regardless of whether you're still on Active Duty or Retired from the military your home is your safe space, so receiving notice that your home insurance policy is being dropped can be incredibly unsettling.

Whether it’s due to a history of claims, changes in your home’s condition, or shifts in the insurance market, being dropped from your home insurance can leave you feeling vulnerable. However, all hope is not lost. Here, we’ll explore what it means to be dropped from your home insurance, why it might happen, and, most importantly, what steps you can take to navigate this situation.

Understanding Why You Were Dropped

You might be dropped from your home insurance policy for various reasons. Here are a few to consider:

History of Claims
A history of filing claims is one of the most common reasons for being dropped from your home insurance.1 While insurance protects you when things go wrong, filing numerous claims can raise red flags for insurance companies. They may see you as having a higher risk, especially if your claims are for issues that could be prevented or are indicative of ongoing property problems.

Home Condition Changes
Another reason you were dropped could be changes to your home that make it riskier to insure. For instance, if you’ve let maintenance slide and there are now structural issues, or if you’ve made additions or renovations that haven’t been adequately disclosed to your insurer, these could lead to policy cancellation.

Insurance Market Shifts
Sometimes, the reasons for being dropped are entirely beyond your control. Insurance companies may decide to pull out of certain regions, change their underwriting guidelines, or adjust their risk tolerance due to broader market conditions. For example, in August 2023, Safeco dropped 950 insurance policies throughout San Francisco and the East Bay due to the risk of wildfires.2 This can leave homeowners in a tough spot through no fault of their own.

What to Do If You’re Dropped From Your Home Insurance

If you’ve been dropped from your insurance, take the following steps to ensure coverage and get your questions answered:3

1. Contact Your Insurance Company
As soon as you receive notice that your policy is being dropped, reach out to your insurance company for clarification so that you can understand the specific reasons for the cancellation. This will help you determine whether there are any immediate steps you can take to remedy the situation.

2. Look for New Coverage
Begin searching for new insurance coverage immediately. Being proactive is crucial because you don’t want to have a gap in coverage. Utilize online comparison tools or work with an independent insurance agent who can help you find a policy that fits your needs.

3. Assess Your Home
If the reason for cancellation is related to the condition of your home, take steps to address these issues. This might involve getting necessary repairs done, conducting a home inspection to identify any potential problems, or making home improvements to reduce risks.

4. Review Your Options
Depending on the reason for the cancellation, you might have options to appeal the decision or work with your current insurer to make changes that satisfy their requirements. If your claims history is a factor, consider whether paying for smaller repairs out of pocket, rather than filing claims, is possible.

Being dropped from your home insurance can be a stressful and frustrating experience, but it’s essential to remain proactive and informed. You can confidently navigate this situation by understanding why you were dropped, taking immediate steps to secure new coverage, and making changes as needed.

Military Finances are Different

Civilians and Active or Retired Military Members can own a home. But it is common for Active and Retired Senior Military Officers and NCOs to have different financial issues and benefits than their civilian counterparts. That's why we think you should work with a Financial Planner or Advisor that deals with your unique issues every day. If you'd like to see how we work with Active and Retired Senior Military Officers and NCOs, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 101: Have You Updated Your Home Insurance Policy?


Military Finances 101: Liability Insurance


5 Home Renovations That Can Affect Your Insurance





  1. https://www.policygenius.com/homeowners-insurance/news/california-wildfires-insurance-crisis/
  2. https://www.bankrate.com/insurance/homeowners-insurance/dropped-from-home-insurance/
  3. https://www.forbes.com/advisor/homeowners-insurance/dropped-by-home-insurance-company/

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