(NC) Whether you’re renting or own your home, insurance is essential for protecting your belongings against many dangers. But if your insurance is cancelled, you’re not protected.

Your insurance coverage can be cancelled by you or the insurance company. If the insurance company cancels, you will have to report that to every insurance company you contact afterwards. That means you’ll be forced to pay more money every month as a sort of penalty. You can always use a site like LowestRates.ca to find the best rates on home insurance, for free.

Now, here are six reasons why your home insurance could be cancelled – and how to avoid them:

1. Non-payment of monthly premiums: Many customers don’t know insurance companies are charged $20 each time they attempt to take a payment from an account with insufficient funds and will cancel a client if this happens repeatedly. The best thing to do if you are short on funds is be proactive and let your insurance company know ahead of time.
2. Change in risk or too many claims: An insurance company may cancel your policy if risk factors have changed (for instance, if the risk of your property flooding has increased due to climate change) or if you’ve made too many claims.
3. The insurance company decides not to renew: This one is out of your hands. If an insurance company decides to stop servicing a certain region or community, they can decide not to renew. However, this situation won’t impact your record.
4. Fraud, misrepresentation or nondisclosure: Lying to obtain or lower your insurance can lead to immediate termination, as if the policy never existed. This includes failing to provide requested information or providing false information. So, always be truthful in your applications and claims, it’s not worth the risk to lie.
5. Unrepaired damage: If you make a claim for damage on your home, you need to repair the damages with your claim reimbursement. Many insurance companies will require proof of repair through photos or contractor invoices.
6. You switched providers without notification: If you’re going to get home insurance elsewhere, let your current insurance company know immediately. Many insurance companies auto-renew policies. If you don’t cancel or notify, it can be a black mark on your record.

Looking for a better rate on your home insurance? Try a site like LowestRates.ca, which compares insurance companies for you for free, ensuring you’ll always have the best price.