Can't Get Homeowners Insurance Because of Claims History

Multiple claims in your homeowners insurance history create coverage difficulties, but there are alternatives. Traditional insurers decline coverage after multiple claims. With independent agents, FAIR Plans and specialty providers, you find coverage despite claim history, though premiums are higher and options more limited. Consider these strategies:

Filing multiple or high-cost homeowners insurance claims raises 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. Most insurers review the past five to seven years when deciding whether to approve coverage or set your premium. Older claims 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 by avoiding new claims and maintaining continuous insurance.

Your claims history isn't the only factor that leads to rejection when applying for homeowners insurance. Various other elements, such as the condition of your property, its location and even certain personal factors, influence insurers' decisions. Here are other reasons why you might face challenges in obtaining homeowners insurance:

Understanding these factors helps 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. FAIR Plans typically cover:

• Fire Damage: Coverage for damage caused by fires, which is a fundamental aspect of most FAIR Plans
• Smoke Damage: Protection against damage caused by smoke, often associated with fires
• Windstorm Damage: Includes damage from wind-related events, which is particularly relevant in areas prone to hurricanes and tornadoes
• Hail Damage: Coverage for damage caused by hail, which is a common concern in many regions
• Explosion: Protection against damage due to explosions, a less common but significant risk
• Riot or Civil Commotion: Coverage for damage resulting from riots or similar disturbances
• Aircraft Damage: Protection against damage caused by aircraft, which, while rare, is a potential risk
• Vehicle-Caused Damage: Coverage for property damage caused by vehicles
• Vandalism and Malicious Mischief: Protection against intentional damage to the property

Qualifying for FAIR Plans is essential 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:

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 make a big difference. By following the steps below, you gradually improve your chances of getting approved for standard homeowners insurance.

• Maintain Continuous Coverage: Even if it's through a high-risk provider or a FAIR Plan, keeping some form of homeowners insurance in place shows responsibility. A steady track record without lapses reassures insurers.
• Avoid Filing Small Claims: Paying out of pocket for minor repairs prevents additional claims from showing up on your record. Over time, fewer claims help demonstrate lower risk to insurers.
• Improve Your Credit Score: Many insurers use credit history as part of their underwriting process. Strengthening your credit makes you look like a more reliable policyholder.
• Invest in Home Maintenance and Safety: Updating old systems, repairing wear and tear, and adding safety features reduce the chance of future claims. These upgrades make your home more appealing to insurers and may even lower premiums.
• Review Your Claims History for Accuracy: Mistakes happen on insurance reports, so check yours regularly and dispute errors. Correcting inaccurate claims data quickly improves your eligibility.

Homeowners insurance denial due to claims history is frustrating, but there are alternatives. Other providers, FAIR Plans and independent agents help you find coverage despite claim issues. Understand your denial reasons and reduce future risks to improve your chances of standard insurance approval.

These answers address common questions about homeowners insurance denials and coverage alternatives after claim issues.

Getting denied homeowners insurance because of claims history doesn't mean you're out of options. We analyzed quotes from multiple providers to show you what coverage actually costs when you have a challenging claims record, and which companies are more likely to work with you.

Our Research Approach

We sourced quote information from Quadrant Information Services and state insurance departments, analyzing rates from major insurers nationwide. This research helps you understand realistic pricing expectations and identify insurers that may approve coverage despite your history. Even with past claims, you deserve to know which companies offer competitive rates and which charge excessive premiums.

Homeowner Profile

We created a sample homeowner profile representing someone rebuilding their insurance eligibility:

• Good credit score (769 to 792), showing that maintaining good credit helps offset claims history
• Home constructed in 2000, a typical age that most insurers will cover
• Wood-frame construction, standard building type
• Composite shingle roof, common roofing material that meets insurer requirements

Homeowners Insurance Coverage Details

We tested these coverage limits to show what you'll actually pay:

• $250,000 in dwelling coverage
• $125,000 in personal property coverage
• $200,000 in personal liability coverage
• $1,000 deductible

These limits represent adequate protection for most homes. We also compiled data for policies with broader coverage to identify the best companies for insuring expensive homes, with limits of $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.