At Covered, our mission is to make sure everyone gets the insurance they need to safeguard their homes, cars, and financial futures. If you've been declined for coverage, don't worry – you're not alone. Let's dive into the seven most common reasons why insurance carriers might decline homeowners insurance and what you can do about it.
#1 Claim History:
Frequent or large claims on your homeowners insurance can make carriers see you as high-risk. The same goes for the prior owner of your home. If there’s a history of claims, carriers may consider your home risky to insure.
#2 Lapse(s) in Coverage:
Maintaining continuous insurance shows carriers you're a lower financial risk. Lapses in coverage could lead to a decline in insurance.
#3 Insurance Score and Credit History:
Your insurance score, influenced by your credit history, can affect the likelihood of filing claims. Poor credit could result in a bad insurance score.
#4 Age of Dwelling:
Older homes with outdated features may be seen as riskier to insure. Sub-par materials or maintenance issues can lead to a decline in coverage.
#5 Failure to Maintain Property:
Proper maintenance is essential. Neglecting your property can raise liability concerns and result in a decline from insurers.
#6 Type of Construction:
Certain construction types, such as wood-frame or manufactured homes, may be viewed as risky by carriers. This could impact your chances of getting coverage.
#7 Loss Exposure:
Insurers assess risks like fire hazards, flood zones, crime rates, and other factors that could lead to losses. Your home's surroundings and potential risks play a role in the coverage decision.
What Can You Do If You're Declined?
- Get more quotes from different carriers to explore other options.
- Consult with your insurance agent or advisor to address concerns.
- Seek a second opinion from another professional.
- Make necessary repairs to improve your home's insurability.
- Reach out to your state's insurance department for additional guidance.
Remember, being declined doesn't mean it's the end. Take proactive steps to secure the coverage you need and protect what matters most. Reach out to our licensed advisors at (833) 487-2683 or send us a message for expert guidance. We’ve got you Covered.
