How to get home insurance if you've already been turned down

If your home is considered a high risk, you may have trouble getting insurance. Here's what you should do to try to get coverage at a reasonable price.
There are many reasons why you may be having trouble getting insurance for your home, including non-payment of premiums, a high claims frequency, your precarious financial situation, particularly a bankruptcy discharge. Other barriers can include employment-related issues, being a bar owner or employee, or a tenant in a commercial building and living in a congested sector.

Knowing what is preventing you from obtaining insurance is key to finding a way to get it. The reasons homeowners are being excluded from coverage is because insurance companies are becoming increasingly more adept at spotting potential problems. Your home doesn’t have to sit on a coastline or tornado area to be considered high-risk. Flooding, wildfires, mould contamination and even crime are all liabilities that could red flag your home as a problem.

Typically more than two claims in three years will make your insurance difficult to obtain or very expensive. Said frequency may even result in the insurer dropping you as a client altogether. In addition, a bunch of small claims are viewed as more unsavoury than one massive one, especially if the claims involve water damage. For example, a home owner who's home has had recurring water-intrusion problems will find it very difficult to purchase homeowners insurance.

If your credit rating is to blame, simply put: improve your score. If your home’s condition is the culprit, get to work and resolve whatever issues it may have. Ask questions, too. Ask your insurer why you were denied coverage and find out if making upgrades will enable you to obtain insurance. In some instances, insurers will agree to insure the home if you improve on, say, aging pipes or aged electrical systems.

If you’ve filed a couple of small claims recently, try to avoid doing it again unless the damage is severe. Save your insurance for catastrophic damage – that’s when you will need the coverage most.