If you own a Calgary home (and a home insurance policy to go with it), then familiarizing yourself with insurance terms is a good idea for several reasons. The more knowledge you have, the less likely it is for you to run across bad surprises down the road.
You're probably thinking: "Well I'm not going to cancel my home insurance policy any time soon." While this is a valid point, the truth is that cancellation is not always intentional. No wait, scratch that. Cancellation is never intentional.
There is a big difference between your insurance company deciding to cancel your home insurance policy in Calgary and you deciding not to renew it after it expires. Basically, there are two things that can lead your insurance company to cancel your policy:
- Failure to pay your monthly premiums;
Should you find yourself guilty of any of the above, then it would be natural for you to expect your insurance company to cancel your home insurance policy without warning. On the other hand, non-renewal is something that you have total control over. After a policy expires you can decide to renew it or not. Neither decision comes with any consequence, except the possible (and very real) consequences that might arise as a result of not properly covering your Calgary home.
- The belief that you have committed fraud or made serious and damaging misrepresentations in your application.
Now that you know the difference between cancellation and non-renewal, don't forget to pay your monthly insurance premiums on your Calgary home insurance policy! ;)