According to Policygenius, failing inspection and filing one or multiple claims were both cited by 22% of young homeowners as reasons for having their policies cancelled or not renewed. (Credit: Vitalii Vodolazskyi/Adobe Stock)
From January 2021-January 2024, 16% of homeowners had their property coverage canceled or non-renewed, according to Policygenius, which found homeowners aged 18-34 were 10 times more likely to be dropped by a carrier.
Around 5% of homeowners older than 55 had their home coverage dropped or non-renewed during the past three years, while 15% of homeowners 35-54 years of age said the same, Policygenius reported.
Among younger homeowners, 16% said they lost coverage because their carrier exited the market they are located in and 18% had a policy dropped because they lived in an area with a high risk for hurricanes, wildfires or other natural disasters.
"Insurance companies conduct home inspections less often on properties that have had a policy in force for several years," Angelé Doakes, a licensed home insurance expert and property & casualty operations manager at Policygenius, said in a report. "This could account for the disparity between younger and older homeowners when it comes to inspection-related nonrenewals or cancellations."
Failing inspection was the most common reason young homeowners had a policy canceled or non-renewed. Filing a claim or multiple claims was also a major reason young homeowners lost coverage, according to Policygenius.
Looking more broadly at the reason policies were canceled or not renewed across demographics, Policygenius found the following:
- 36% of individuals were dropped because they filed a claim or multiple claims.
- 35% of individuals were dropped because they live in a high-risk area.
- 34% of individuals were dropped because the insurer no longer offers coverage where they live.
- 33% of individuals were dropped because they failed a home inspection and didn't make necessary home improvements.
- 19% of individuals were dropped for a different reason.
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