What to Do when You Can’t Get Homeowners Insurance

Struggling to find homeowners insurance is stressful. Many insurance companies will deny a policy renewal if you miss payments or file too many claims. You could also discover that your application for insurance on a new home may be denied if it’s deemed too big of a risk. Older homes and those in known flood and wildfire zones may be harder to insure. Fortunately, you have some options to end your search for insurance that are worth exploring today.

Be Proactive about Finding Insurance

The first thing you’ll want to remember is to avoid giving up on your search for homeowners insurance. Each day your home goes without insurance is a threat to your financial security. In some instances, you may fall out of compliance with your mortgage loan agreement. Time is of the essence for getting insurance, and it’s important to continue your search until you secure a policy.

Find Ways to Reduce Your Risks

If an insurance company denies your policy renewal or application, they’ll typically tell you the reasons why. For instance, the insurance company might view your home as having a high risk of sustaining storm or fire damage. In this case, you might be able to implement fire mitigation efforts or install a new roof to reduce the risk. If you’ve missed payments or filed too many claims, an insurance company might be willing to work with you if you opt to pay the policy in full.

Explore Your Eligibility for a FAIR Plan

A Fair Access to Insurance Requirements (FAIR) plan is a last-resort option for homeowners that can provide at least some financial protection. Typically, this state-mandated plan will only cover a few established perils, such as damage caused by fire, lightning, or smoke. To be eligible for a FAIR plan, you’ll usually need to demonstrate you’ve been denied coverage by at least two different potential insurers.

Consider Getting a Difference in Conditions Policy

A FAIR plan is helpful when you can’t find traditional insurance, but it also comes with the challenge of providing less coverage than you might need to feel financially secure in the event of certain incidents. A Difference in Conditions (DIC) policy is a supplemental type of insurance that can fill in any gaps in coverage left by a FAIR plan policy. You might be able to get coverage for more perils, such as theft, and many homeowners are able to use this type of policy to get liability insurance. In some cases, you could also get coverage for earthquake and flood damage. Keep in mind you might not be able to get this type of policy from every insurance company, which is why you’ll need to do your research.

Talk to an Experienced Insurance Agent

Trying to figure out your options for homeowners insurance can get complicated, especially if you need to explore your eligibility for a FAIR plan or supplemental policies. Experienced insurance agents know the challenges homeowners often face in their areas. Speaking with a professional within the industry can help you secure home insurance faster and safeguard your financial security. 

Following the tips above can help you if you’re ever in the unpleasant position of having trouble getting homeowners insurance. For reliable, affordable homeowners insurance, San Diego homeowners know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and car insurance Chula Vista. Request a free quote by calling one of our friendly agents today.