[sunny]

My insurance called me yesterday and informed me that they would be cancelling my insurance because I have rented my house to a group of students. They gave me two weeks to find new insurance before they cut me off. I'm having trouble finding someone who will insure us. If they cut my insurance, my bank will cancel my mortgage, and I guess that means I'd lose the house. Is this insurance company allowed to drop me in this manner. When we got the insurance two months ago there was nobody living in the house, but it was rental insurance. We never lied or anything, we were completely honest through the whole process.

[kako]

Yes, it was probably in the fine print. You can find insurance, it will just be more expensive. Later you can find another insurer that is cheaper.

[mbrcatz17]

That varies, depending on what state you are in. Yes, renting your home out means it's not an"owner occupied"dwelling any more, so isn't eligible for a homeowners policy. Yes, renting to a group of students is the absolutely highest risk group you can rent to, MOST insurance companies won't insure you. You're going to have to go to a high risk carrier - maybe Lloyds of London. It's going to be a WAY LOT more than it is right now. Your current agent should put this out on the market, and get a couple quotes for you.Anyway, the insurance company has to issue a cancellation notice to you, for material change of risk. They might say a different reason, but they DO have to give a reason. I've never seen a notice time of less than 30 days, but it might be out there. I'd imagine there's no way it can be less than 10, but could be as long as six months.They can also cancel with 10 days notice, because you insured it as a rental, but at the time it was vacant. Check the application - I'm sure one of the questions on it was about occupancy!!

[Ronnie]

I would check your policy to see if your insurance company should be void or not.Off hand, however, I see no problem. You can, however, expect to pay a premium on your insurance policy to the norm because it can be interpreted as being rented for commercial use.

[jacks1]

If you are hones and never lie then go against the company and say them to prove the claim that is made by the comapny but before going for it just meet the lawyer so he can make the case more strong in the regardings.