The 3-year rule prohibits insurance companies from raising deductibles and canceling or not renewing homeowner policies in effect for more than three years. If you don't have insurance available now, this does nothing to help you access insurance.

An insurance company could write an insurance policy for your home and literally, within one year from you getting insurance and paying premiums, cancel your policy or hike your deductible to an unreasonable amount. This could mean that an insurance company could write you a policy in early September and then cancel it at anytime within that one year from you obtaining insurance, because you no longer have the three year rule protecting you.

Repealing the 3-year rule was only meant to help insurance companies collect more premiums, and not to help those who couldn't obtain insurance suddenly have the ability to obtain it.

This post was edited on 5/1/24 at 4:06 pm

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Posted by TDTOM

Member since Jan 2021

14941 posts

Posted on 5/1/24 at 4:08 pm to CreoleTigerEsq

Now that a few others have chimed in it must definitely be a good thing based on who is pissed.

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Posted by Chad504boy

4 posts

Member since Feb 2005

166675 posts

Posted on 5/1/24 at 4:10 pm to CreoleTigerEsq

I think you understand nothing correctly.

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Posted by Tiger Prawn

Member since Dec 2016

21995 posts

Posted on 5/1/24 at 4:29 pm to CreoleTigerEsq

quote:
This could mean that an insurance company could write you a policy in early September and then cancel it at anytime within that one year from you obtaining insurance, because you no longer have the three year rule protecting you.

No they cannot. They can non-renew you at the end of that one year term, but they can't just make up a reason to cancel you midyear

In the very first year of the policy, the insurance company can cancel a policy within the first 60 days for just about any reason. This is primarily used as the inspection period for the insurance company. It allows the insurer time to inspect the property and then issue cancellations if the property either is in unacceptable condition or has unacceptable liability hazards. Once you get beyond the first 60 days of the policy, the insurer can non-renew you but not cancel you midterm (except for instances of fraud). Repealing the 3 year rule does not change this.

ETA: and if they wrote you a policy in early September, then the 3 year rule wouldn't have even applied to you anyways until after you received your September 2027 renewal.

This post was edited on 5/1/24 at 4:31 pm

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