What Happens If You Can’t Get Home Insurance?

Even if an insurer has denied you coverage in the past, you can find ways to lock in home insurance coverage.

Anna Baluch
Written byAnna Baluch
Photo of an Insurify author
Anna BaluchInsurance Writer
  • 4+ years writing insurance and personal finance content

  • MBA from Roosevelt University

Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.

Featured in

media logomedia logomedia logo
Katie Powers
Edited byKatie Powers
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

media logomedia logo

Updated March 14, 2024

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Homeowners insurance can protect one of your largest investments: your home. If an insurance company has told you that you’re ineligible for home insurance, don’t panic. You have options at your disposal, regardless of your situation. You can start the process by comparing quotes from multiple insurers.

Here’s what you need to know if you’re struggling to get home insurance or an insurer has denied you coverage.

Find Cheap Home Insurance

Get personalized home insurance quotes in minutes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

What to do if you can’t get homeowners insurance

High-risk homeowners have options. You can look into purchasing coverage from an insurer specifically geared toward high-risk homeowners or a FAIR Plan policy if your state offers it. Improving your credit score, repairing property damage, and keeping your claim frequency low can also make it more likely for an insurance company to issue a home insurance policy.

If you’re having a hard time solidifying homeowners insurance, consider the following tips to increase your chances of receiving coverage.

Find high-risk homeowners insurance

Some home insurance companies specifically gear coverage toward high-risk homeowners. These companies offer non-standard policies, which usually have more lenient eligibility criteria but come with higher premiums.

You may be a good candidate for non-standard home insurance if your property has unique construction elements, like a flat roof or timber framing. It may also be a good option if you live in an area with harsh weather conditions or high crime rates. Non-standard insurance might also apply to you if you have a poor credit history or have declared bankruptcy in the past.

You can reach out to an insurance agent or real estate agent to learn more about which high-risk insurance products may be available to you.

Take out a FAIR Plan policy

Some states offer Fair Access to Insurance Requirements (FAIR) Plans as a last resort option for homeowners who don’t qualify for traditional home insurance policies. Funded by taxpayers and private insurance companies, these plans offer coverage from several insurers.

Keep in Mind

FAIR Plans come with limited coverage and typically only cover losses due to fire, vandalism, windstorms, and riots. Check with your state insurance regulator to determine if FAIR Plan policies are available and find out more about how they work in your state.[1]

Improve your credit score and repair any property damage

Insurance companies are more likely to approve you for home insurance coverage if you have good to excellent credit. By improving your credit score through timely payments and less debt, you’ll increase your chances of landing a homeowners insurance policy.

Another way to strengthen your home insurance application is to repair property damages, such as a leaky roof or foundation problems. This decreases the chances of you filing future insurance claims related to these damages.

Keep your claim frequency low

The more you file home insurance claims, the riskier you become in the eyes of a home insurance company. For this reason, you should only file claims when it makes financial sense. If the damage is minor, you might be better off paying for it out of pocket. A good rule of thumb is to file a claim only if you believe the damage will cost more than your deductible to repair.

Reasons a home insurance company may deny you coverage

A home insurance company may deny your request for coverage for a number of common reasons.

Poor credit history

Studies have shown that people with lower credit scores file more home insurance claims than people with good credit, which costs insurers more money. If you have a history of filing many claims, a company or its independent agents might be hesitant to cover you.

High-risk factors in property

During the application process for a home insurance policy, most insurance companies will consider hazardous features in and around your home. These may include swimming pools, ponds, trampolines, wood-burning stoves, outdated heating systems, electrical wiring, or trees with low limbs.

Since high-risk features can increase your likelihood of filing a claim, insurers may decide to deny your coverage.

Frequent claims history

Through the comprehensive loss underwriting exchange (CLUE), insurance companies can easily access your claims history. The report outlines the types of losses you’ve had in the past and how much insurers had to pay out. A frequent claims history will make it riskier for insurers to provide coverage for your home.[2]

Risky location

Though you can’t control theft rates, accident rates, and natural disasters in your area, these factors can work against you when you apply for home insurance. For example, home insurance companies may deny homeowners who live in risky locations with many hurricanes or tropical storms. Or insurers may increase premiums significantly.

You use your home as a rental or plan to

In most cases, your home must be your primary residence for an insurer to cover you. If you rent out your home or plan to rent it out in the future, getting home insurance coverage can be tricky. Most standard home insurance companies don’t accept homes that owners list on rental websites or purchase explicitly for rental income. You’ll need a different type of policy if you want coverage.[3]

Why you need homeowners insurance

If you have a mortgage, your mortgage lender will require you to purchase a certain amount of home insurance and include this information in your mortgage agreement. State law doesn’t require you to buy homeowners insurance if you own your home, but forgoing a policy can cost you.

Without adequate coverage for your home and personal property, you may be responsible for thousands of dollars (or even more) in uninsured losses after an unexpected disaster strikes. These hefty out-of-pocket expenses can wipe out your savings and put you in a devastating financial situation.

In addition to protecting your home and its belongings, home insurance offers liability protection, which can be a real lifesaver if you damage someone’s property or someone incurs an injury at your home. Investing in a policy can offer you some much-needed peace of mind in a variety of situations.

Shop for Home Insurance

Insurify partners with top insurers for real-time quotes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Factors that affect home insurance availability

Many factors affect the availability of home insurance, including:

  • illustration card https://a.storyblok.com/f/162273/x/68ed522f01/windstorm-and-hail.svg

    Location

    Some insurers aren’t willing to extend policies to homeowners in high-risk locations. If you live in a high-risk area with severe weather conditions — like frequent hurricanes or tornadoes — or high crime rates, you may struggle to secure home insurance coverage.

  • illustration card https://a.storyblok.com/f/162273/100x100/c922a01b77/house.svg

    Property value

    If your property value increases and it costs more to repair or replace your home, you might need to increase your coverage limits. Depending on your situation, home insurance companies may not offer enough coverage.

  • school bus

    Type of property

    Home insurance is usually only for primary residences. It may be more difficult to lock in a policy for rental homes, mobile homes, and vacation homes.

What happens if you can’t get home insurance FAQs

It’s important to secure insurance coverage for your home. The following information can help you decide what to do next if an insurer denies selling you home insurance.

  • Why might you not be able to get homeowners insurance?

    You may be ineligible for a home insurance policy if you have a poor credit score, high-risk features on your property, or a history of frequent claims. Home insurance coverage may also be a challenge to obtain if you live in a risky location or rent your home for the short or long term.

  • What are the risks if you can’t secure homeowners insurance?

    If you’re unable to get home insurance coverage, you could face hefty out-of-pocket costs for repairs or replacement in the event of a disaster like theft, water damage, or a hurricane. Having no home insurance can take a significant toll on your personal belongings and finances.

  • Are there alternative options to traditional homeowners insurance?

    Yes. You can find coverage from a high-risk insurance company or a FAIR Plan in your state. Working on improving your credit and removing risky features from your property can help as well.

  • What should you do if an insurance company denied you coverage due to previous claims?

    If a company has denied you home insurance due to previous claims, you may want to explore a FAIR Plan or high-risk insurance company. It’s also a good idea to limit the number of claims you file in the future.

  • How can you improve your chances of securing homeowners insurance in the future?

    By maintaining good credit, keeping claims to a minimum, and getting rid of pools, trampolines, and other high-risk features, you can increase the likelihood of getting home insurance coverage down the road.

Sources

  1. Insurance Information Institute. "What if I can't get coverage?."
  2. Consumer Financial Protection Bureau. "LexisNexis C.L.U.E. (Auto & Property Reports)."
  3. Insurance Information Institute. "What is homeowners insurance?."
Anna Baluch
Anna BaluchInsurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

media logomedia logo

Compare Home Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Latest Articles

View all