Canceling Earthquake Insurance in Texas
How Do I Cancel Earthquake Insurance in Texas?
You can cancel an earthquake insurance coverage by contacting your insurance agent or company to request policy cancellation. Make sure that you have the replacement earthquake coverage in place before canceling the existing policy. With the new policy arranged, contact your current insurer and let them know that you are canceling coverage. You will be asked some clarifying questions, identifying the reasons for dropping the coverage, and will be provided any additional paperwork that you must fill out to officially terminate the coverage. If you have a prepaid and unused premium in the policy, make sure to clarify with the insurer when and how much of it you will be receiving back. Afterwards, submit a written request with all the necessary information regarding the earthquake policy.
When Should I Cancel my Earthquake Insurance Policy?
You can cancel your Texas earthquake policy any time you feel the policy is no longer necessary. However, an insurer may require a cancellation fee or refuse to refund your unused earthquake premium in full if you cancel before the scheduled expiration date.
Discuss your intention to cancel your earthquake coverage with a licensed insurance agent in Texas. There are certain factors to consider if you're deciding whether or not to cancel your Earthquake coverage, such as:
Type of Property and
Its Location.
A property built in a high-potential earthquake environment will need an earthquake insurance policy. In contrast, a building in a low-risk region may not need an earthquake insurance policy.
Cutting down the cost may be a better alternative than canceling your earthquake insurance policy. Nevertheless, you can opt for a lower coverage amount and high deductibles to cut down the earthquake premium cost.
Is it Bad to Cancel Earthquake Insurance Policy?
Yes and No. If you need earthquake coverage and you cancel it, you are exposed to risk, which is bad. If you no longer need earthquake coverage based on material and scientific facts, canceling coverage can save you money, which is good and canceling an earthquake coverage plan can seriously affect your building and personal properties.
Generally, it is impossible to predict where or when an earthquake will occur. It is also impossible to know the magnitude of the earthquake and the number of aftershocks to expect. Even mild magnitude 4 quakes caused by oil exploration, which is common in Texas, can damage high-rise commercial properties and belongings in a residential building. Thus, it is not wise to cancel your earthquake insurance policy as it will require seeking loans or taking out of planned savings to repair damages caused by surface ruptures. Earthquake insurance policies in Texas cost a yearly premium of between $500 and $1,500 for residential properties, and $2,000 and more for commercial properties.
Speak with a Texas-licensed insurance agent to discuss your earthquake insurance needs, and whether it will be good or bad for you to cancel it.
Can I Cancel Earthquake Insurance without Penalty?
You can cancel an earthquake coverage without penalty if you cancel before renewing the policy. Most private insurance companies require a cancellation fee for terminating the insurance contract before its official expiration.
Do I Get a Refund of Unused Premiums if I Cancel Earthquake Insurance Coverage?
Yes, you will get a refund of unused premiums after canceling your earthquake policy. However, the terms and conditions of the insurance contract will determine if you will get a complete refund or partial refund. (Check the terms of the policy and see guidance of an insurance professional to answer your specific questions)
How Can I Reinstate Canceled Earthquake Insurance?
In order to reinstate canceled earthquake insurance in Texas, you have to apply for a new earthquake policy. If you plan to use the same insurer, your previous customer file is likely still accessible, and the insurer should be able to quote and bind the policy based on the previous data. If more than a few weeks have passed since the earthquake coverage was canceled, and there was no other proven coverage in place, the insurer is likely to request an inspection of the property - to confirm that it is still in insurable condition.
Note that insurers do not offer new earthquake policies immediately after an earthquake. Therefore, you must wait between 30 and 60 days before applying for an earthquake policy when a ground tremor occurs. Discuss your intention to apply for a new earthquake insurance policy with a licensed Texas insurance agent.
