Yes, the Home Insurance Companies can drop you if you had filed too many claims. This is because no insurance company would like to pay for too many claims from the same property.
This is irrespective of whether these are genuine claims or not. The insurance company may also enhance the premium; or else they may not renew your insurance policy. This is the reason the insurance company is always eager to know the insurance and credit history of the owner.
A person making too many claims is considered a “high risk” and is avoided by the insurance companies. Also, another common cause of dropping of insurance is, non-payment of insurance premiums.
Other reasons for canceling a home insurance can be, a change in the safety profile of the property. This can be due to storage of unsafe materials, poor maintenance of risky items or structures; or anything that may come up during an inspection. Also, changing the use of the property without prior information to the insurance company may result in cancellation. For example, using a residential property for commercial purposes, opening a restaurant or hotel in the premises etc. can be considered as a violation of the terms and conditions of home insurance.
To avoid these, one must keep the insurance company informed in case of any changes in the nature or use of the property. You should also pay the premium in time. Also, it is best not to make claims in case of minor loss or damages. If the damages are up to the value of deductibles, then that amount itself has to be paid first by the insured. Even if the damage is just a fraction more than the deductibles, then also makes better sense not to make a claim.