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Why have I been dropped by my insurance company?

This article will explain the reasons behind an insurance company's decision to refuse or cancel a policy.

If you’ve ever been on the receiving end of a refusal or cancellation notice from an insurance company, you’re likely familiar with the confusion, disappointment, and concern it can bring. This article will explain the reasons behind an insurance company’s decision to refuse, deny or cancel a policy. We will explore practical solutions and essential steps you can take to reduce the likelihood of being dropped in the future.

Refused Vs Cancellation – Know the Difference

First of all, when it comes to insurance, not all negative outcomes are created equal. There’s a significant difference between being refused (or denied) insurance and having a policy cancelled, each with its own implications for the policyholder.

Refused or Denied Insurance

Being turned down for insurance, or not having your policy renewed, happens when an insurer decides it can no longer continue to cover you. This can occur for several reasons, such as changes in your situation that increase your risk, problems with credit history, a criminal record, or too many claims in the past.

Essentially, if the information you provide doesn’t match what the insurer is looking for, they might not be able to offer you coverage.

Let’s look at a real-world example:

Imagine you’re a homeowner planning renovations or building works on your property. You follow the rules by informing your insurer about your plans, just as your policy instructs. But here’s the thing—many standard policies may not cover extensive renovation work, particularly if the project is lengthy or requires you to vacate your home for more than 4 weeks.

Finding yourself in such a scenario means your home might not be insured during the renovations. This lack of coverage could be due to the increased risk associated with leaving homes empty or the complexity of the renovation work exceeding the usual insurance coverage. Consequently, you could be refused or denied cover.

Cancelled or Voided Insurance

On the other hand, a policy cancellation happens after a policy has already been issued. This can be a more jarring experience because it involves the termination of an existing agreement between the insurer and the insured.

Policies can be cancelled for several reasons. Common causes include missed payments and fraud. A policy may be cancelled if there is a change to the risk initially insured, particularly if these changes, which could increase the level of risk, are not communicated to your insurer. Furthermore, the discovery of previously undisclosed information that could have affected the insurer’s decision to issue the policy can also lead to cancellation.

Let’s go back to our home renovation analogy:

Your planned renovation work has begun, but unexpected delays occur. These might be due to supply chain issues delaying essential materials, or more people being on site than initially anticipated. An increase in on-site workers can heighten the risk of accidental damage to the property.

If you have to move out of your home temporarily but don’t notify your insurer, you might unknowingly be violating your policy’s rules. Most standard home cover only allows short periods of unoccupancy or smaller DIY projects requiring minimal workers and equipment.

Such changes could lead to the cancellation of your cover and refusal to pay out claims. They could argue that the risk has changed from what was initially agreed upon. Often, homeowners don’t realise there’s a problem until they need to make a claim—only to find it denied due to these breaches.”

refused, denied or cancelled insurance
Refused, denied & cancelled insurance infographic

What to Do After Being Dropped

After facing a denial or cancellation, it’s important to know what steps to take next. Here’s how you can navigate the situation with practical tips and actions:

checkReview the Denial or Cancellation Notice

  • Understand the Reasons: Carefully read the notice to understand the specific reasons for the denial or cancellation. Insurers are required to provide these details, and knowing them can help you address the issue.
  • Check for Errors: Ensure that the decision wasn’t based on incorrect information. If you find errors, contact your insurer with the correct details.

cancelled checkExplore Alternative Coverage Options

  • Specialist Insurers: Look for insurance companies that specialise in non-standard coverage offering policies for unique circumstances.
  • Temporary Coverage: If you only require a short-term policy, seek out an insurer that can cover your specific needs.

refused insurance checkImprove Your Insurability

  • Mitigate Risks: Take steps to reduce any potential risk that might make insurers hesitant.
  • Document Your Renovations: Keep detailed records of the work being done.

checkPrepare for the Future

  • Review Your Insurance Needs Regularly: Your insurance needs can change over time, especially after major changes like renovations.

checkKeep Communication Open

  • Inform Insurers of Changes: If you’re planning significant changes to your property or usage, inform your insurer ahead of time.


Facing a refusal or cancellation from your insurer is undoubtedly challenging, but it’s not the end of the road. Understanding the reasons behind the insurer’s decision is the first step in addressing the issue. With the right approach—exploring alternative options and taking proactive steps to improve your insurability—you can navigate through these challenges. Remember, the goal is not just to find any coverage, but to secure a policy that meets your specific needs, ensuring you’re protected when it matters most.

Life happens – we’re here to explore your options with you

At Intelligent Insurance, non-standard is our absolute speciality. We believe everyone should have access to insurance cover, irrespective of your property condition or personal circumstances.

If you have been refused or denied insurance cover, or have had a policy recently cancelled, get in touch with us today to see how we can help you.

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