How Private Policy Lapses Work in a Hard Market
The California insurance market has hardened. The insurance industry has recently limited its ability to secure reinsurance. This reinsurance issue has created underwriting challenges for carriers, causing many insurers to limit their footprint in California. A smaller carrier footprint means private policy holders face fewer options and higher premiums.
But that’s not all. Today, in a hard insurance market, if your home, auto, or umbrella policy lapses for non-payment by the renewal or due date of the policy, there is no guarantee that your coverage will be reinstated. If your policy does lapse there may be conditions for your reinstatement, or you may be subject to reapply for coverage. Your application may be subject to new underwriting guidelines, which could cause your premium to increase significantly, or you could be provided with less coverage.
Strategies to Keep Your Payments on Track
Fortunately, there are a number of strategies that can help you keep payments on track to help prevent an unintended cancellation of your private policies. You can find them in our latest PDF resource, How Private Policy Lapses Work in a Hard Market.
Contact Burnham WGB Insurance Solutions
You don’t have to navigate the hard private insurance market on your own. Our Private Risk Management team is here to help keep your personal assets protected. Please feel free to contact the insurance and risk management experts at Burnham WGB for assistance or to get a competitive quote.