Why Would Homeowners Insurance Be Cancelled? 
Generally speaking a policy is cancelled for non payment of premium . That is by far the most common reason . Some states allow a carrier 60 days to decide if they will accept an applicant / insured which gives an insurer time to inspect and make some determination . After 60 days most states require the insurer to remain on the exposure till the end of the term at which time they can decide not to renew a policy . Property is different in a lot of ways from auto insurance . Carriers often put into effect moratoriums on new coverage in the instance of a natural disaster -LRB- flood , wind , Hurricane , wild fire , tornado , earthquake . -RRB- During these specified events a company may take the position that a policy was not authorized to be issued . Additionally , carriers often are faced with exposures they only find out about by doing a property inspection . So , it is not uncommon , for the policy to be written with as much information as is known by the agent , but then the risk emerges as being more subject to loss than they understood originally . All property insurance is somewhat reviewed in the general COPE formula for underwriting . COPE stands for Construction , Occupancy , Protection , and Exposure . Construction can mean the simple review of materials or the type of construction -LRB- i.e. Log homes -RRB- is not one the carrier wants . Occupancy sounds pretty simple , but there are houses that are not occupied , , seasonally occupied or even occupied by a business and not something the carrier wants . Protection stands for the type of protection afforded the structure/contents from loss . That could be as simple as what Public Protection Class , PC a home has -LRB- PC represents a grading system for fire departments in the US -RRB- or it can be an assessment of protection from a different peril i.e. burglary . And then lastly there is exposure . Here you might be thinking about the fact that the home is fine , but it is surrounded by brush in CA , or is a mile form an ocean , or is adjacent to a chemical factory . Lastly , keep in mind that a homeowners policy also has a section for liability coverage . If you have a trampoline in the yard , a swimming pool with no fence , a large or dangerous dog , a carrier may deem you to be an exposure they simply do not wnat . 