Nonrenewal

Nonrenewal is not the same as cancellation

Nonrenewal happens at the end of a policy term: the insurer simply declines to offer a new term, and the policy ends on its scheduled expiration date. Cancellation is different. The insurer ends the policy before that date, most often for nonpayment but sometimes for another underwriting reason. A board that hears "canceled" when the letter actually said "nonrenewed," or the reverse, can miscalculate how much time it has to find replacement coverage.

Florida is the state this Course could verify consistent, sourced notice periods for on both situations, so the specifics below are Florida's. Check your own state's insurance code for its numbers.

How much warning you're owed

In Florida, an insurer that won't renew a commercial property or casualty policy, including an association's master policy, must send written notice at least 45 days before the current policy ends, and that notice must say why.

"shall give the first-named insured at least 45 days' advance written notice of nonrenewal or of the renewal premium. If the policy is not to be renewed, the written notice shall state the reason or reasons as to why the policy is not to be renewed."

Source: Florida Statutes §627.4133, The Florida Senate

Cancellation notice periods are shorter and depend on the reason.

Other states set their own nonrenewal and cancellation notice periods, and this Course did not verify what they are. Check your own state's insurance code and the cancellation and nonrenewal clause in your current policy.

Nonrenewal is more common lately, but the trend is not one-way

A Community Associations Institute survey of nearly 900 respondents representing more than 10,000 communities found that most saw a premium jump at their last renewal, and some lost coverage outright.

"More than 90% of respondents reported that their property and casualty insurance premium had increased at the last or current renewal." "Eleven percent of respondents indicated that their property and casualty coverage was canceled or not renewed."

Source: Insurance coverage: Communities report significant challenges with rising premiums, Community Associations Institute

That survey did not separate nonrenewal from cancellation, and the pressure behind it may be easing rather than building without end: Florida reinsurance pricing was reported down at the mid-2025 renewal after 2022 legislative reforms. A nonrenewal notice today does not automatically mean next year will be worse.

What to do the day the notice arrives

Start shopping immediately rather than waiting for the expiration date.

"Don't wait until the policy's expiration date to start shopping around."

Source: The art of insurance bidding: Practical strategies help navigate a hard market, Community Associations Institute

Give your broker real underwriting data, current valuation, capital improvements, occupancy, amenities, and several years of loss history, and work through one broker rather than sending the same package to five agents. Saturating the market with duplicate submissions on a single account can hurt pricing. If the standard market won't write your association at all, some states run an insurer of last resort for exactly this situation; see High-risk markets for how that works and whether your state has one.