Homeowners Insurance Denied or Canceled? You Aren’t Alone. Here’s What to Do Next
Whether you just spent a few hours researching your home insurance policy or you’ve been with the same insurance company for years, being denied coverage can be frustrating. The insurance company may deny your application or renewal home insurance For a variety of reasons, such as if you live in a high-risk area, if your home needs repairs, or if you have a history of missing payments.
However, you still have options to find the coverage you need. You can continue to request quotes from various insurance companies, find out why you were denied or denied, and review special state resources that may offer you coverage.
Main points
- Insurance companies may reject you Homeowners Insurance Coverage Based on the condition of your home, risk factors in your location, or your personal insurance history.
- If you have a mortgage, your lender will require home insurance, so be prepared to shop around.
- If you are unable to insure your home, consider special state insurance plans.
- If you think you have been unfairly denied, you can make a complaint to your insurance company.
Why was your home insurance application denied or policy cancelled?
Insurance companies may deny coverage for a variety of reasons. In some cases, you can qualify for homeowners insurance by taking certain steps, but in other cases, you have less control. Here are some possible reasons why you may be denied coverage:
- Extensive damage in your area
- An insurance company withdraws from the market in your state (usually due to natural disaster)
- You fail to pay insurance premiums
- You submitted too many home insurance policies claim
- Your credit score is too low
- You have financial risks, such as a high claims history
- Your home is too risky to insure
- Your dog is a “restricted breed”
hint
In the past, most states required insurance companies to give you about 20 to 60 days’ notice. Give up your coveragebut exact notification requirements vary by state. If you are concerned about your coverage, check with your company and ask about this policy.
Steps to take after being denied or losing home insurance
Once you have been denied coverage, there are several steps you should be prepared to take to try to regain coverage:
- Find out why you were rejected
- Ask the insurance company to reconsider your application or see if you can adjust your coverage
- Request a quote from other insurance companies
- Ask friends and neighbors which insurance company they use
- Improve your home to reduce risk
- Improve your credit score
- take out one Surplus line policy If you have been rejected by multiple insurance companies
- Search for special insurance plans in your state, such as fair
- If you think you have been unfairly dismissed, make a complaint or contact a solicitor
important
if you Have a mortgage and lose your home insuranceyour lender may purchase the insurance for you and charge you a fee compulsory insurance. Since it is usually more expensive than home insurance that you find yourself, you will need to contact your lender and instruct them to cancel the mandatory coverage once you find your own home insurance.
bottom line
If your home insurance application is denied or your insurance company drops you, you may feel powerless. However, once you figure out why you can’t get coverage, you can take steps to find coverage, such as shopping around, researching special state insurance plans, or improving personal factors to reduce your risk of getting coverage.