Residential Insurance

State of California Department of Insurance 21 The insurer has sixty days from the policy’s effective date in which to verify the rating and underwriting of a new policy. Within these sixty days, a company must notify you of any error and resulting change in premiums. After sixty days, no notice of change of premium shall be effective. Premiums After a residential policy has been in effect for sixty days, the insurance company can only cancel a policy for reasons specified by law, which include; nonpayment of premium, fraud , material misrepresentation , or physical changes in the insured property that increase any hazard insured against. The company must mail or deliver a notice of cancellation to you at your last known address at least 20 days prior to the effective date of cancellation, and 10 days for nonpayment of premium or for fraud. However, it is important to know that companies may sometimes provide more generous cancellation notification timeframes in their policies. If the policy provides for a cancellation notice period of longer than 20 days, the policy language will apply. A written notice of nonrenewal must be forwarded to you at least 75 days before the expiration date. If the company fails to give you the proper notice as required by law, your existing policy, with no change in its terms and conditions, will remain in effect for 75 days from the date the notice is sent. Both cancellation and nonrenewal notices must contain the reason for the cancellation on nonrenewal. Cancellations and Nonrenewals What are Your Rights?