Under what circumstance can a homeowner's insurance policy be canceled?

A homeowner's insurance policy can be canceled for non-payment of premiums because this is a fundamental requirement for maintaining coverage. When a policyholder fails to pay their insurance premiums on time, it indicates a breach of the contract terms, which typically allows the insurer to terminate the coverage. Insurers rely on timely payments to maintain their financial stability and ability to pay claims when they arise.

In contrast, the accumulation of claims alone doesn't automatically lead to cancellation. While excessive claims may be a factor that insurers consider during renewal, they do not typically trigger cancellation during the policy term unless they indicate higher risk. Moving to a new location usually requires notifying the insurer and may result in adjustments to the policy, but it does not directly lead to cancellation. Lastly, the renewal of the policy is a separate process that involves evaluation of risk and premium adjustments, rather than an immediate cause for cancellation.