Insurance Non-Renewals: How to Prevent Them—and What to Do If You Get One

Property insurance is becoming increasingly difficult to obtain and is vulnerable to loss. Across California, rental housing providers are being dropped by their carriers with little notice and even less explanation. While some non-renewals are unavoidable, many can be prevented or appealed with preparation and documentation. This article offers general guidance on how to reduce the chances of a non-renewal, what to expect if you receive one, and steps other owners have taken to stay covered.

Please note: BPOA does not offer specific insurance or legal advice. This article is intended to help you understand common issues and questions so you can speak more confidently with your insurance professional.

1. Why Insurance Non-Renewals Are on the Rise

If you’ve noticed that it’s getting harder to maintain property insurance or to get a straight answer from your carrier, you’re not imagining things. California’s property insurance market is undergoing a major shift, and rental properties are often the ones caught in the middle.

Insurance companies are reevaluating what they’re willing to cover in response to several growing challenges:

Increased wildfire and climate-related risk

Warming temperatures, drought conditions, and more frequent wildfires have made entire regions of California harder to insure.

Soaring construction and repair costs

Even routine claims have become expensive for insurers to resolve, especially with labor shortages and rising materials costs.

Underwriting pressure and limited reinsurance

Some carriers are pulling out of California entirely, while others are raising standards to reduce their financial exposure.

Greater scrutiny of older buildings and small portfolios

Rental properties, especially older homes, are more likely to be flagged due to age, condition, or location.

Even owners with a long history of clean claims are being affected. Policies that were renewed for years without issue are now being canceled with little warning. The stated reasons are often vague, such as “underwriting criteria” or “location-based risk.”

For many, the first sign of trouble is a non-renewal notice arriving in the mail. That’s why it’s important to understand what’s happening in the market and take steps to prepare well before your policy comes up for review.

2. Common Reasons Properties Get Dropped

Carriers rarely provide detailed explanations when they decide not to renew a policy. Instead, policyholders receive a brief notice referencing “risk assessment” or “underwriting criteria.” While vague, these notices often stem from specific concerns, some of which may be visible from a street view, aerial photo, or outdated report in the insurer’s system.

Below are common reasons rental properties are flagged for non-renewal:

Roof condition

Worn shingles, moss growth, or signs of sagging can suggest deferred maintenance, even if the roof isn’t leaking. If your roof looks aged or uneven, it may be flagged as a risk.

Siding and exterior wear

Peeling paint, damaged siding, or cracked stucco can raise questions about the overall condition of the property.

Outdated mechanical systems

Old water heaters, obsolete electrical panels (such as Zinsco or Federal Pacific), knob-and-tube wiring, or single-pane windows may suggest that critical safety upgrades have been deferred. Even if your systems function properly, an insurer may still view them as unacceptable risks. If you've replaced any of these, hold on to receipts and closed permits to show the work was done correctly.

Fire risk and vegetation

Homes located in wildland-urban interface (WUI) zones or surrounded by overgrown vegetation are considered higher risk. Maintaining a clear defensible space is especially important.

Neighborhood concerns

Even if your property is well-maintained, insurers may assess the surrounding area. Nearby graffiti, abandoned structures, or visible encampments can all influence a decision.

Lack of recent documentation

Insurers are increasingly requiring evidence of maintenance and upgrades. Without documentation, such as closed permits, invoices, or inspection reports, they may assume the worst.

Not every factor is within your control, but understanding how insurers think can help you prepare your property and present it in the best light.

Quick Reference: Common Triggers for Insurance Non-Renewals

Before You Spend: Weigh the Costs

Upgrades and repairs can be expensive, and there’s no guarantee they’ll result in better insurance terms. While some improvements (like replacing a failing roof or removing overgrowth) may help prevent cancellation, others may have little effect on your premium or eligibility, especially if the carrier is exiting the California market entirely.

It’s worth asking:

• Will this upgrade improve the safety, longevity, or habitability of my building?

• Is this work already overdue, or am I doing it only for insurance purposes?

• What has my broker or carrier actually flagged as a concern?

• Am I likely to get better quotes or access to more carriers if I invest in this now?

If you’re unsure, talk to a broker before committing to costly work. Some BPOA members have successfully fought off non-renewals with minimal improvements and the right documentation. Others have found that a full roof replacement made no difference. When in doubt, treat insurance preservation as one of many factors, not the only one.

3. Steps You Can Take to Lower Your Risk

While some insurance decisions are out of your hands, there are steps you can take to improve your property's risk profile and demonstrate that you're a responsible, proactive owner. Many of these steps won’t just help with insurance, they also contribute to better maintenance records, improved tenant satisfaction, and stronger long-term asset value.

Prioritize visible maintenance

Roof, siding, paint, and fences are often evaluated from the street or by aerial imaging. If these elements appear worn or neglected, your property may be flagged even if it's structurally sound. Keep up with cosmetic and functional upkeep, and take photos once work is complete.

Document everything

Start a running file of property improvements and inspections. Save receipts, contractor invoices, before-and-after photos, and city inspection records. This kind of documentation can sometimes persuade an insurer to reconsider a non-renewal or help your broker secure coverage from another carrier.

Pull permits and close them out

When replacing windows, installing a gas water heater, or upgrading electrical panels, make sure you pull permits and schedule final inspections. Insurers increasingly want proof that work was done to code. Open or missing permits can raise red flags, even if the job was completed.

Address outdated or hazardous systems

If your property still has a Zinsco or Federal Pacific (FPE) electrical panel, knob-and-tube wiring, or an aging gas appliance, consider budgeting for replacement. These upgrades won’t always reduce your premium, but they can help keep you insured.

Improve fire safety

Trim trees, clear dry brush, and maintain defensible space, especially if you're near a WUI (Wildland Urban Interface) zone. Even properties outside official fire zones can benefit from visible fire mitigation efforts.

Talk to your broker before your policy renews

Ask if there are any red flags on your file or inspections you should be aware of. Some brokers can arrange a pre-renewal review or advise you on specific improvements that may help.

Don't let your policy lapse

A missed payment—even due to a technical error—can make it harder to get reinsured. Set calendar reminders well in advance of your renewal date and keep a backup payment method on file with your broker if possible.

4. If You Receive a Non-Renewal Notice

Even with strong maintenance and documentation, some cancellations are unavoidable, especially if your carrier is pulling out of the region or reassessing all properties in your zip code. If you receive a non-renewal notice, don’t panic, but don’t wait either.

Here’s what to do next:

Contact your broker right away

Find out why the policy is being dropped. Ask if there's an opportunity to appeal, and whether the decision came from the carrier or a third-party inspection.

Request documentation or photos if an inspection was done

Some insurers use third-party property inspectors, drones, or satellite images to assess risk. If your property was flagged based on an image or report, you may be able to refute it with recent photos or evidence of completed work.

Gather and submit your own documentation

Receipts, closed permits, before-and-after photos, and dated inspection reports can go a long way in demonstrating that your property does not pose a significant risk. If an appeal is possible, this is your chance to build your case.

Ask for reconsideration if appropriate

Some members have successfully reversed a non-renewal by submitting proof of completed repairs or upgrades. It doesn’t always work, but it’s worth trying, especially if the carrier has not exited the market completely.

Start shopping for a new policy immediately

Do not wait until your coverage expires. If your current carrier won’t reverse the decision, start looking for new coverage as soon as you receive the notice. Your broker may be able to help, or you can contact the California FAIR Plan as a last resort.

Be aware of deadlines

Most notices will include a cancellation or non-renewal effective date. Mark this date on your calendar and set a reminder well in advance so you aren’t left scrambling at the last minute.

Lessons from Other BPOA Members

While every insurance situation is different, we’ve heard from members who have managed to avoid or reverse a non-renewal notice—sometimes with just a little effort, and sometimes after documenting substantial investment. These stories aren’t guarantees, but they offer insight into what’s possible.

Documented improvements helped reverse a decision

One member received a non-renewal notice after an aerial image flagged the roof as being in a state of deterioration. In reality, the roof had been replaced six months earlier. After submitting the signed permit, invoice, and date-stamped photos, their broker was able to have the cancellation withdrawn.

Small maintenance steps made a big difference

Another member reported receiving notice that their property was “uninsurable” due to siding and vegetation. They cleared brush, repainted one wall, and submitted photos. While their insurer didn’t reverse the decision, a competing carrier offered coverage based on the improvements and documentation alone.

High fire risk doesn’t always mean a dead end

A third member in a WUI zone was dropped despite having modern upgrades and a strong maintenance history. Although they couldn’t get reinstated with their original carrier, they were able to secure new coverage—at a higher premium—after demonstrating extensive fire mitigation work and clear defensible space.

These examples underscore the importance of documentation and timely response. While outcomes vary, taking action quickly and providing evidence can make all the difference.

Final Thoughts

Insurance non-renewals are frustrating, unpredictable, and increasingly common—but they aren’t always final. Whether you’re trying to stay ahead of the curve or responding to a notice you’ve already received, the most effective strategy is preparation. Stay informed, maintain strong records, and don’t be afraid to ask questions or push back.

Even in a tough market, many owners have found ways to preserve coverage or secure alternatives. The key is to act early, document thoroughly, and treat insurance as a part of your ongoing maintenance and risk management, not just an annual renewal task.

BPOA will continue to monitor trends and share insights gained from members and industry experts. If you’ve experienced a non-renewal or found an approach that worked for you, let us know. Your insight may help another owner stay insured.