Updated: June 27, 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.
If your claims history is making it difficult to get homeowners insurance, you’re not out of options. Some traditional insurers may decline coverage after multiple claims, but there are still steps you can take. From working with an independent agent to exploring FAIR Plans or specialty providers, understanding your alternatives can help you regain coverage and protect your home.
Here are some actionable strategies to consider:
Different insurance companies have varying policies regarding claims history. Explore 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.
Implementing safety upgrades can make your home more appealing to insurers. This could include installing security systems, upgrading electrical wiring or reinforcing structures against natural disasters. These improvements can increase your chances of getting 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.
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 Access to Insurance Requirements (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.
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. Consider FAIR Plans when other insurance options aren't viable to ensure some level of financial protection for your property.
Qualifying for Fair Access to Insurance Requirements (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 homeowners insurance due to your claims history can be frustrating, but it doesn't mean you're out of options. Alternative providers, FAIR Plans and independent agents can help you find the coverage you need. Understanding why you were dropped and taking steps to reduce future risk can improve your chances of getting insured again.
Navigating homeowners insurance after claim denials raises many questions. Here's what you need to know about coverage challenges and your options.
A house may be considered uninsurable if it poses too much risk for insurers to cover. Common reasons include multiple past claims, poor property condition, location in high-risk areas (like flood or wildfire zones), or the presence of hazardous features. In some cases, personal factors like poor credit or a history of policy lapses can also make it difficult to get coverage.
Yes, an insurer can refuse to renew a homeowner's insurance policy. This decision is often based on factors such as changes in the risk associated with insuring the property, a history of frequent or severe claims or significant changes in the property's condition. Insurers are usually required to provide notice before nonrenewal, giving homeowners time to seek alternative coverage.
Your claims history is a vital indicator to insurers of the potential risk and cost of insuring your home. A history of multiple or large claims suggests a higher likelihood of future claims, which represents a greater financial risk for the insurer. This history can impact the availability of coverage and cost, as insurers might charge higher premiums to offset this perceived risk.
You can be denied homeowners insurance if your provider deems you too financially risky to insure. For instance, if you have a low credit score, have a history of claims or live in a high-risk area, you may be denied homeowners insurance.
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.
