New Hampshire Insurance Department Sends Letter to Insurers Regarding Homeowner Insurance Cancellations During Freelook Period

CONCORD, NH (October 1, 2024) – The New Hampshire Insurance Department (NHID) has issued a formal letter to insurance carriers, urging them to address growing concerns about the cancellation of homeowners' insurance policies during the “free look” period. This follows reports of U.S. Postal Service delivery delays, which have led to some policyholders receiving their cancellation notices after their policies have already been canceled.

In the letter, Commissioner DJ Bettencourt reminded insurers of their responsibilities under state law RSA 417-B:4, I(b), which permits them to cancel new homeowners’ policies within a 90-day free look period for valid underwriting reasons, as long as a 10-day notice is provided. However, due to postal delays, some consumers have not received timely notices, resulting in unintended lapses in coverage.

The NHID is requesting insurers to voluntarily extend the notice period by at least five additional days beyond the required 10-day minimum to protect consumers from losing coverage due to mail delays.

“While this letter is not, and should not be construed as, a formal regulatory action, we strongly encourage insurers to collaborate with us and implement these adjustments on a voluntary basis,” said Commissioner Bettencourt. “By adding a few extra days to the notice period, insurers can help ensure that policyholders receive adequate warning before a cancellation takes effect, which is especially important in light of ongoing postal challenges.”

The letter also addresses concerns that some insurers are canceling or non-renewing policies for underwriting reasons that could easily be remedied by the policyholder. Commissioner Bettencourt emphasized that insurers should give policyholders a reasonable opportunity to resolve such issues before taking action to cancel or non-renew a policy.

“We believe insurers should work with policyholders to address any concerns before issuing cancellation or non-renewal notices,” said Commissioner Bettencourt. “Providing consumers with sufficient time to remedy underwriting issues is both a fair and prudent approach.”

The New Hampshire Insurance Department Can Help

The New Hampshire Insurance Department’s mission is to promote and protect the public good by ensuring the existence of a safe and competitive insurance marketplace through the development and enforcement of the insurance laws of the State of New Hampshire. Contact us with any questions or concerns you may have regarding your insurance coverage at 1‐800‐852‐ 3416 or (603) 271‐2261, or by email at consumerservices@ins.nh.gov. For more information, visit https://insurance.nh.gov/.