Updated: August 29, 2025
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A history of multiple claims can make it harder to get homeowners insurance, but alternatives like FAIR Plans or working with an agent can help you find coverage.
FAIR Plans offer last-resort insurance for high-risk homeowners, providing basic protection when traditional insurers decline coverage.
Property condition, location and past claims all affect your insurability. Knowing how these factors impact coverage helps you avoid cancellations and secure a new policy.
Multiple claims in your homeowners insurance history create coverage difficulties, but alternatives exist. Traditional insurers decline coverage after multiple claims. With independent agents, FAIR Plans and specialty providers, you can find coverage despite claim history, though expect higher premiums and more limited options. Consider these strategies:
Different insurance companies have varying policies regarding claims history. Look into options with other insurers who may have more lenient policies. Some insurers also specialize in high-risk coverages.
An experienced agent can provide personalized advice and help find insurers that are more accommodating to your specific situation. Agents can also clarify why you can't get homeowners insurance.
As a last resort, Fair Access to Insurance Requirements or FAIR Plans are state-mandated insurance pools for those who struggle to get coverage in the regular market.
Safety upgrades make your home more appealing to insurers. With security systems, upgraded electrical wiring and disaster-resistant reinforcements, you improve your chances of better home insurance rates.
Review your claims history for inaccuracies and dispute any errors to improve your insurance prospects. Ensure all claims listed are legitimate, and contact the reporting agency immediately if you find mistakes.
Opting for a higher deductible makes insurers more willing to offer coverage, as it reduces their risk. A higher deductible means lower insurance premiums. Balance how much you can pay upfront against your annual premium costs.
Consider starting with a basic policy and gradually building a more positive insurance record by avoiding small claims and maintaining consistent coverage.
Filing multiple or high-cost homeowners insurance claims can raise red flags for insurers. A history of frequent claims signals higher risk, which may lead to increased premiums, stricter policy terms or denial of coverage. Insurers use your claims history to predict future risk and adjust your rates or eligibility accordingly.
Insurance companies don’t look at your claims history forever. While it varies, most insurers review the past five to seven years when deciding whether to approve coverage or set your premium. This means that older claims will eventually fall off your record and stop affecting your eligibility.
Multiple claims close together make it difficult to get homeowners insurance coverage, but the impact isn't permanent. Over time, as claims drop off your record, you qualify more easily for standard coverage, especially by avoiding new claims and maintaining continuous insurance.
Your claims history isn't the only factor that can lead to rejection when applying for homeowners insurance. Various other elements, such as the condition of your property, its location and even certain personal factors, can influence insurers' decisions. Here are other reasons why you might face challenges in obtaining homeowners insurance:
Properties located in areas prone to natural disasters like floods, earthquakes or wildfires often face higher scrutiny. Insurers may view these homes as high-risk investments due to the increased likelihood of significant damage.
Older homes or those in poor condition are more susceptible to structural issues, plumbing failures and electrical problems, posing a higher risk for insurers. Homes with outdated features, such as old roofing or heating systems, are particularly challenging to insure.
Certain property features, like swimming pools, trampolines or aggressive dog breeds, can increase the likelihood of liability claims. Insurers might be hesitant to provide coverage or might charge higher premiums for homes with these features.
Insurance companies often use credit history as an indicator of a potential policyholder's risk level. A low credit score or a history of late payments can be seen as a sign of financial instability, making insurers wary of providing coverage.
A history of lapses in homeowners insurance coverage can be a red flag for insurers. It suggests a pattern of risk management that insurers might find concerning.
Filing multiple small claims in a short period can indicate a higher risk of future claims, leading insurers to reconsider offering coverage.
Understanding these factors can help homeowners take proactive steps to improve their chances of obtaining insurance, such as maintaining their property, managing personal risks and addressing any specific issues that might make their home less appealing to insurers.
FAIR Plans provide a safety net for homeowners who face difficulty obtaining insurance due to factors like a problematic claims history or residing in high-risk areas.
These plans, established in the 1960s, are state-mandated insurance pools designed to ensure that all property owners have access to basic property insurance with limited coverage compared to standard homeowners policies. Here's what FAIR Plans typically cover:
FAIR Plans are often seen as insurers of last resort and may offer more limited coverage compared to standard homeowners insurance policies and may not include liability or personal property protection. Consider FAIR Plans when other insurance options aren't viable to ensure some level of financial protection for your property.
Coverage and availability vary by state. Check with your state insurance department for specific requirements and limitations.
Qualifying for FAIR Plans is an essential consideration for homeowners who cannot secure traditional insurance. While these plans are designed for those deemed high-risk, not all high-risk homeowners are automatically eligible for coverage. FAIR Plans have specific criteria that must be met, which includes:
Applicants usually need to show they have been denied coverage by a certain number of insurers (often one or more).
A satisfactory home inspection may be required to assess the condition and risks of the property.
The property must meet certain maintenance and safety standards, such as having a sound roof and structurally secure walls.
Some FAIR Plans are only available in specific geographic areas, especially those prone to certain natural disasters.
Homeowners must be current on property taxes and have no legal disputes regarding property ownership.
A history free of fraudulent insurance claims is often a prerequisite.
Each state may have different requirements and processes for FAIR Plans. These variations reflect the unique risk profiles and regulatory environments of different regions. Research and consult with insurance professionals in your state to understand the specific eligibility criteria and application process for FAIR Plans.
Being denied coverage because of your claims history doesn’t mean you’ll never qualify again. Insurers want to see that you can manage risk responsibly, and small changes over time can make a big difference. By following the steps below, you can gradually improve your chances of getting approved for standard homeowners insurance.
Don't assume one claim makes you uninsurable. Most insurers expect occasional claims, but frequent or severe claims raise concern. Insurers use separate databases, so denial by one company doesn't guarantee denial by others.
Homeowners insurance denial due to claims history is frustrating, but alternatives exist. Alternative providers, FAIR Plans and independent agents help you find coverage despite claim issues. Improve your chances of standard insurance approval by understanding your denial reasons and reducing future risks.
These answers address common questions about homeowners insurance denials and coverage alternatives after claim issues.
Houses become uninsurable when they pose excessive risk for homeowners insurance coverage. Common reasons include multiple past claims, poor property condition, high-risk locations like flood or wildfire zones, and hazardous features. Poor credit or policy lapse history also make coverage difficult to obtain.
Insurers can refuse to renew homeowners insurance policies based on increased property risks, frequent or severe claims, and significant property condition changes. With nonrenewal decisions, insurers must provide advance notice, giving you time to seek alternative coverage.
Your claims history shows insurers the risk and cost of insuring your home. Multiple or large claims indicate higher likelihood of future claims, creating greater financial risk for insurers. This history affects coverage availability and cost, as insurers charge higher premiums to offset perceived risk.
Homeowners insurance providers deny coverage when you're deemed too financially risky to insure. Low credit scores, extensive claims history, and high-risk area locations commonly result in homeowners insurance denials.
MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. By considering different locations and companies, we aim to give a reliable estimate of what homeowners can expect to pay — showing why it’s important to compare rates.
Homeowner Profile
For our analysis, we created a sample homeowner profile with the following characteristics:
Homeowners Insurance Coverage Details
Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
