Nevada Cracks Down on Late-Stage Homeowner Policy Cancellations: New Guidance on Property Inspections

NV| Nevada Division of Insurance Bulletin 26-002 addresses the Division’s concerns over insurers canceling newly issued homeowner policies late within the 70-day underwriting period (per NRS 687B.320) based on property inspection results—cancellations that can cause serious financial and logistical hardship for policyholders who believed their coverage was secure, may have dropped a prior policy, or obtained the new policy to meet mortgage requirements. Reminding insurers that their practices must comply with Nevada’s unfair trade practices statutes (NRS 686A.020) and be fair, transparent, and not misleading, the Division urges insurers to conduct inspections before binding coverage whenever practicable (or shortly after binding if not), avoid using late-period inspections as grounds for cancellation unless the information could not reasonably have been obtained earlier, clearly communicate any pending inspection requirements and their implications to applicants, and review and revise their underwriting workflows to prevent avoidable consumer harm; the Division will continue monitoring these practices.

Click here to see NV Bulletin 26-002