I Can’t Get Homeowners Insurance. What Now?

Updated April 8, 2025
I Can’t Get Homeowners Insurance. What Now? image

Securing homeowners insurance is often a prerequisite for obtaining a mortgage and safeguarding your property. However, some homeowners face challenges when insurers deem their properties high-risk and deny coverage. Understanding the reasons behind these denials and exploring available alternatives can help you navigate this complex landscape.​

Why Homeowners Insurance Applications Get Denied

Insurance companies assess various factors to determine the risk associated with insuring a property. Common reasons for denial include:​

  • Frequent or Recent Claims History: Multiple claims, especially within a short timeframe, can label you as high-risk. Incidents like water damage, mold issues, or liability claims such as dog bites are particularly scrutinized.
  • Property Location: Homes situated in areas prone to natural disasters (e.g., floods, wildfires) or high-crime neighborhoods may face higher denial rates due to the increased likelihood of claims.
  • Property Condition and Age: Older homes or those in poor condition, with outdated electrical systems or roofs in disrepair, present higher risks, making insurers hesitant to provide coverage.
  • Lapsed Insurance Coverage: A history of gaps in insurance coverage can signal unreliability to insurers, leading to potential denials.
  • Low Credit or Insurance Score: A poor credit history can negatively impact your insurance score, influencing insurers’ decisions.

Steps to Take If You’re Denied Coverage

Facing a denial doesn’t mean you’re out of options. Consider the following steps:

  1. Consult Local Insurance Agents: Independent agents often have access to multiple carriers and can identify companies willing to insure high-risk properties. They can provide personalized advice tailored to your situation.
  2. Explore State FAIR Plans: Fair Access to Insurance Requirements (FAIR) Plans are state-mandated programs designed to offer coverage to homeowners unable to secure insurance through the standard market. While they may come with higher premiums and limited coverage, they ensure you have some level of protection.
  3. Consider Surplus Lines Insurers: These specialized insurers cover high-risk properties that standard companies avoid. Although typically more expensive, they provide essential coverage when other options are unavailable. ​
  4. Implement Risk Mitigation Measures: Upgrading your home’s electrical systems, installing security features, or replacing an old roof can reduce perceived risks, making your property more insurable and potentially lowering premiums.
  5. Review and Improve Credit Standing: Enhancing your credit score can positively influence your insurance score, making you a more attractive candidate for insurers.
  6. Seek Recommendations: Neighbors or local community members might have insights into which insurers are more accommodating to properties in your area.

Understanding High-Risk Home Insurance Alternatives

When traditional insurance avenues are exhausted, consider these alternatives:

  • FAIR Plans: As mentioned, these state-backed plans provide basic coverage for high-risk properties.
  • Surplus Lines Insurance: Offered by non-admitted carriers, these policies cater to unique or high-risk properties not covered by standard insurers. ​
  • Self-Insurance: For those financially capable, setting aside funds to cover potential losses can be an option, though it carries significant risk and is generally not recommended without substantial financial reserves. ​

What to Do Next If You Can’t Get Homeowners Insurance

Getting denied homeowners insurance can feel overwhelming—but it’s not the end of the road. You’ve got options, and the key is knowing where to look and how to position your home in a better light for insurers.

Start by working with an independent agent who understands high-risk properties and can shop multiple carriers for you. Consider upgrades that reduce risk, like roof repairs or modernizing outdated systems. And don’t overlook alternatives like surplus lines carriers or state FAIR Plans—they exist for situations just like yours.

If you’re not sure where to start or you’ve already hit a few dead ends, we’re here to help. At Home Insurance Alternatives, we specialize in connecting homeowners with coverage options that work—even when others say no.

Contact us today for a free consultation and let’s get you protected.


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