Apartment Building Insurance Non-Renewed: What to Do

What should you do first after a non-renewal notice?

1. Read the notice: the effective date, the reason given, and whether it is a non-renewal or a mid-term cancellation.
2. Check your state's notice rules with your state insurance department if the timing or reason looks wrong.
3. Tell your lender's insurance contact the date the current policy ends, so there are no surprises.
4. Gather declarations pages, loss runs, the statement of values, update invoices, inspection reports, and photos.
5. Fix the stated issue where you can, or document it with a contractor's letter, invoice, or estimate.
6. Have the account marketed to admitted and excess and surplus lines markets that write the building type.
7. Bind replacement coverage before the expiration date and send evidence of insurance to the lender.

What does the non-renewal notice tell you?

Look for three things: the date coverage ends, the reason, and whether the notice is a non-renewal (no new term at expiration) or a cancellation (coverage ending before expiration). Common reasons include the insurer reducing its habitational or regional exposure, loss history, building age or system condition, an unresolved inspection recommendation, roof condition, or vacancy.

The reason shapes the next step. An insurer leaving a class or a region says little about your building, and other markets may write it on similar terms. A reason tied to the building or its losses tells you exactly what the next underwriter will ask about, so that is where to put your documentation effort.

What notice is the insurer required to give?

Notice periods are set by state law and vary by state and by type of policy; check your state insurance department. Many states also regulate how the notice must be delivered and whether a reason must be stated. The NAIC keeps a directory of state insurance departments where you can find yours. If the notice looks late or incomplete, ask the department before assuming the policy ends on the stated date, but keep working on replacement coverage either way.

How much time do you really have?

Less than it looks. A new market needs time to review the submission, ask follow-up questions, and sometimes inspect, and your lender needs evidence of insurance before the old policy ends. Older buildings and buildings with losses take longer, because underwriters will ask for letters, invoices, or photos you may not have on hand. Start the day the notice arrives.

What documents do you need to replace the coverage?

• The non-renewal notice itself.
• Current declarations pages for property, liability, and umbrella.
• Loss runs from the current and prior insurers. Request them early; they can take time to arrive.
• A statement of values: address, unit count, square footage, construction, and occupancy for each building.
• Invoices or permits showing when the roof, electrical, plumbing, and heating were updated.
• Any insurer inspection report and proof that its recommendations were completed.
• Recent photos of the roof, panels, water heaters, and common areas.
• Your lender's insurance requirements.

Should you fix the issue or document it?

Both, where you can. If the reason is a specific condition, such as an inspection item, a missing handrail, or a panel the inspector flagged, fixing it and sending the invoice is the strongest response. If the fix is large, such as a roof or a repipe, a signed contractor estimate and a scheduled start date still help an underwriter. If the concern is building age or original systems, letters from a licensed electrician or plumber describing condition turn an assumption into a fact. The page on insurance for older apartment buildings covers what underwriters ask about each system.

Is the excess and surplus lines market the answer?

Often it is the fastest path to replacement coverage. The excess and surplus lines market writes risks that standard admitted programs decline, with more flexible forms and pricing. Read the terms closely: water damage sublimits, wind and hail deductibles, habitational exclusions, and vacancy conditions can differ from the policy you had. E&S policies are not backed by state guaranty funds, so the insurer's financial strength matters. Many owners use an E&S placement as a bridge, then remarket to admitted markets once updates are done and the loss history improves.

How do you avoid a lapse and force-placed coverage?

Most mortgages require continuous property coverage that meets the loan's insurance requirements. If the policy expires with nothing in place, the loan can be in default, and the lender or servicer can buy force-placed insurance and add the cost to your loan. Force-placed coverage usually protects the lender's interest in the building, not your liability, contents, or lost rents. Keep the lender informed, bind before expiration, and send evidence of insurance with the correct mortgagee wording. The Q&A on what happens if apartment insurance lapses explains the consequences in more detail.

What should you do short term and long term?

Short term, the goal is continuous coverage that satisfies the lender, even if the terms are not ideal: a higher deductible or a water damage sublimit is better than a lapse. Long term, address the reason for the non-renewal, keep update records in one file, and start each renewal early. The renewal strategy guide covers how to prepare.

Frequently asked questions

Related reading

• Apartment building insurance program
• Insurance for older apartment buildings
• What happens if apartment building insurance lapses
• What is force-placed insurance
• The E&S market explained