State law allows it in certain situations.

Here's a guide to when you can and can't be dropped.

First, an insurer can't cancel or non-renew policies just because a policyholder either filed a single water damage claim or filed claims that are the result of a hurricane or other “act of God” unless the company can show that the policyholder failed to take reasonable actions requested by the insurer to prevent similar damage from happening again.

The company can otherwise cancel or non-renew a policy when it's up for renewal or within 90 days of the policy taking affect.

An insurer can also cancel after the 90-day point if:

The policyholder lied about something material such as the age of the home, didn’t pay the premium or didn’t comply with an underwriting requirement within 90 days of the state of the coverage.

There’s a substantial change in the risk covered by the policy

The cancellation is for all policyholders with that type of insurance, not just you.

The Office of Insurance Regulation finds that early cancellation of some or all of the insurer’s policies is necessary to protect the best interests of the public or policyholders – based on the insurer’s financial condition, lack of adequate catastrophe backup coverage or other reasons – and approves the insurer’s plan for early cancellation or non-renewal. The insurer must warn policyholders at least 45 days in advance. This provision was added as part of a sweeping property insurance law passed this year.

The policy covers both a home and car and the insurer gives at least 90 days notice.