Purchasing an insurance policy has been highly encouraged in these recent years for offering numerous benefits which include protecting our assets, providing financial support and covering the costs of medical care as well as other services. However, policies purchased can be cancelled by either the insurance company (the insurer) or the customer (the insured) depending on certain circumstances. Cancellation is usually made by the insurer rather than the insured. Here are five reasons for our policies being cancelled:
This is the number 1 reason for your insurance cancellation. When 2 parties (the insurer and the insured) have reached an agreement, a contract will be signed and contain all the details about payment terms including payment methods and deadlines. Should there be any breach of contract from the insured, the insurer has every right to cancel their offered policies.
Damaging assets such as cars, house or any highly valuable intentionally won’t gain you any coverage for the repairing costs or financial support (cash). This is applied to any types of policies purchased from the insurer.
This case commonly happens to home-owners. Any insurance agent would investigate claims made by customers and consider whether to pay for the coverage or not. Keep in mind that you can seek an insurance policy and ask for financial support or reimbursement whenever you want but it’s the agent that decides. This is also applicable to the contract ending as your insurance would get cancellation should you make too many unreasonable claims.
In the event of being missed updated about changes from the insured, the insurer will cancel their insurance policies. Specifically, there are two types of changes: the one beyond your control and the material one. For example, you purchased policy only supports assets which are worth 1 million dollars or fewer. If the value increases to 2 million dollars and some damages are done, your policy may not come in power. Such change is called inflation and this is the type 1. On the other hand, material changes are the ones including new replacement to devices in your home. If you fail to report these changes to the insurer, your insurance policies are likely to be cancelled.
For citizens who had criminal records, “moral hazards” or a major change in their life situations, it’s unlikely that their insurance policies will continue for a long period. It is also believed that the insurance policies are going to be cancel if you inhabit in another country.
The fore-mentioned reasons are the most popular ones, however, there are still a few more such as purchasing a new insurance quote from another agent while your current one hasn’t expired.
In the event of confronting cancellation from the insurer, have some words with the agent. There is always a way to keep your insurance quotes extended and here are a few tips you can apply.
Getting our insurance policies is undoubtedly annoying because we have to purchased them all over again, and they are essential at every stage of life. To not get any insurance cancellation, follow these guides suggested below: