Can an insurance company cancel your insurance in a catastrophe?

Answer 1

No, No insurance company in America would cancel your policy simply because you have experienced a disaster or have a catastrophe pending.

However, If you have missed your premium payment, your renewal or have a non-renewal notice pending, the mentioned pending catastrophe would have no effect on your expire date or cancel date. So if your policy has been cancelled or non-renewed, a pending catastrophe will not nullify the policy cancellation or expiration.

In simpler terms. The company will not postpone or move your cancel or expire date due to a impending catastrophe. but they also can not cancel your policy just because a catastrophe is on the way.

AnswerI am only licensed in Virginia, so my answers are directly for Virginia only. But, this may help. Your policy cannot be cancelled due to claims. However, your policy can be "non-renewed" for claims. Even in a catastrophe. In either case, the claim would be paid assuming there are no other problems like lying on an application/fraud. Lastly, each admitted company in Virginia is required to state their requirements for the insureds and their premium calculators(underwriting/actuary) to the state. So, your premiums and reasons for cancellation/non-renewal are set ahead of time. This is a contract which cannot be changed mid-term without cause. So, your insurance cannot be changed, altered, or cancelled without a reason.