what happens if i get turned down for homeowners insurance?

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Through no fault of their own, some homeowners encounter hurdles and obstacles when it comes to getting coverage. If you find yourself repeatedly denied home insurance, here are some steps you can take to get the insurance protection you need.

reasons why some homeowners may struggle getting home insurance

Unlike an auto policy, homeowners insurance isn't required by law. That said, virtually no mortgage lender will dole out loans to someone without homeowners coverage of some kind. For homeowners struggling to find insurance, this poses a big problem — especially considering that you need homeowners insurance before closing.

Usually homeowners encounter obstacles if they live in what insurers call a "high-risk" home or area. That may include homes with outdated electrical systems or plumbing, older homes, or homes located in a disaster-prone region or a neighborhood high in crime.

Here are other instances where coverage may be turned down:

  • Vacation homes/Empty property: Home's that are unoccupied for a certain amount of time are exposed to greater risks, especially when it comes to vandalism, theft, and arson.
  • At-home employment: If you work from home on a more or less full-time basis, you may run into complications with getting homeowners insurance. That's because insurers only cover personal belongings and liability. In this case, purchasing a separate business owners policy could be a problem-solver.
  • A homeowner's personal circumstances may create an obstacle in finding home insurance. This could include criminal convictions, a poor credit rating, and bankruptcy to name a few.

what you can do if you’ve been turned down by home insurance companies

If you've reached out to several homeowners insurance companies to no avail, don't panic. There are many options at your disposal. Here are some actions you can take to find coverage:

Speak with your current insurance professional

If you have an insurance policy on your car, boat, or business, reach out to your insurer. If the issue isn't the location but the condition of your home, you may be able to find out what improvements or security features are needed to help bring your home up to insurable condition.

Also, consider reaching out to an independent insurance agent. Because independent agents typically work with more than one insurer, they may have top-notch resources for finding a viable insurance company.

Speak with your neighbors

If location is an issue, your neighbors have likely encountered similar woes with homeowners coverage. Find out which companies they're insured with, as they may be in the know with particular risks in the area. Additionally, consider speaking with your real estate agent to find out who previously insured the home.

Contact your state insurance department

Your state insurance department likely has a list of high-risk insurers that offer coverage in your area. But if you're still not able to get insurance, find out if your state participates in a shared market plan. Fair Access to Insurance Requirements (FAIR) Plans offer property insurance to those who can't get homeowners insurance in the voluntary market — mainly for those homeowners who live in high-risk areas.

Although FAIR Plan rates are typically higher and extend less coverage than an average homeowners policy, it offers at least some protection if coverage is currently too difficult to come by. In other words, no one has to be without coverage.

get a fast, free homeowners insurance quote from esurance

Even getting turned down once or twice by insurers can be discouraging, but don't give up. Get your fast, free homeowners insurance quote from Esurance, and check out our myriad coverage options that can be tailored around the unique needs of your home and family. Plus, we offer a wide-spectrum of money-saving perks to help keep extra dough in your wallet

For more information, feel free to give us a ring at 1-866-439-5633, where we're available at these times to help and answer any of your home insurance queries.

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