Opening a letter from your home insurer that says your policy won’t be renewed is stressful. Maryland law gives homeowners specific protections when an insurer cancels or declines to renew a homeowners policy.
Your Maryland Nonrenewal Questions, Answered
How much notice does an insurer have to give?
Generally, an insurer must give at least 45 days’ written notice before a cancellation or nonrenewal takes effect. If the cancellation is for nonpayment of premium, the notice period is shorter.
Does the insurer have to explain why?
Yes. Maryland requires the notice to state the actual reason for the cancellation or nonrenewal.
Can I challenge the decision?
In most cases, yes. Maryland gives policyholders a right to protest a cancellation or nonrenewal to the Maryland Insurance Administration, generally within 30 days after the notice was mailed. The right of protest doesn’t apply to cancellations for nonpayment.
Are there reasons insurers can’t use?
Maryland law limits several factors. Insurers generally can’t cancel or nonrenew a policy based on a claim that occurred more than three years earlier, based on an inquiry about a claim that didn’t result in payment, or based on your credit history.
What if I can’t find new coverage?
Notices must include information about the Maryland Joint Insurance Association, the state’s residual market for property insurance. It can issue coverage when properties meet its guidelines, though terms may be more limited.
Steps to Take If You Receive a Notice
- Read the notice carefully and note the stated reason and effective date
- Decide quickly whether to file a protest, since the window is short
- Address any property conditions mentioned, such as roof or electrical concerns
- Contact your agent to compare other options before coverage ends
The Maryland Insurance Administration’s consumer resources have current details. Canopy Insurance Group in Towson, MD can help you review a nonrenewal notice and compare home insurance options. Homeowners across Towson, MD and Baltimore County can reach out to Canopy Insurance Group or visit our Towson office page.
