Orlando Harmon
If you can't get homeowners insurance, there are a number of reasons this could be the case, from having bad credit to living in an area prone to severe weather or high crime. If you've been rejected, you can try to find out why and take steps to mitigate the risk, such as by installing security devices or weatherproofing. You may also be able to access insurance through a Fair Access to Insurance Requirements (FAIR) plan, a surplus line company, or a state-mandated insurance program. If you are unable to obtain insurance, your mortgage lender may be able to find an insurer, but the premiums will likely be very high.
| Characteristics | Values |
|---|---|
| Reasons for rejection | Bad credit, living in a floodplain, high-risk location, old plumbing, electrical and heating systems, previous claims history, letting a previous policy lapse, not a primary residence |
| Options for those rejected | FAIR plans, surplus line insurance, HO-8 policy, force-placed insurance, shop around for a different insurer, improve security or weatherproofing |
| FAIR plan details | Available in more than 30 states, subsidised by the state and private insurers, may cost more and offer less coverage, covers losses due to fire, vandalism, riot and windstorm |
| Surplus line insurance details | Licensed in their home state or country, policies may have more exclusions and higher deductibles, claims may go unpaid if the insurer becomes insolvent |
| HO-8 policy details | For homes at least 40 years old, covers fire, theft and vandalism, pays out the actual cash value of possessions after depreciation |
| Force-placed insurance details | Bought by the mortgage lender, can cost twice as much as regular insurance, protects only the lender |
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What You'll Learn
High-risk homes may be rejected by insurers
Homeowners insurance is meant to protect your biggest investment, but not everyone gets approved for a policy. You may be rejected for a variety of reasons, some of which are related to you and some to the home itself. If your home is considered high-risk, you may be rejected by insurers. A home is considered high-risk if it is located in an area prone to severe weather, such as hurricanes, windstorms, tornadoes, hail, or wildfires. If your home is in a high-crime area, it is also more likely to be considered high-risk. Old plumbing, electrical, and heating systems in a home can also increase the risk of fire or water damage, making it harder to insure.
If your home has been deemed high-risk, you may be rejected by several insurers. In this case, you can look into surplus line insurance, which covers properties with unique risks that traditional carriers "can't or won't insure." Surplus line policies are offered by companies like Lloyd's of London and Berkshire Hathaway, and typically have more exclusions and higher deductibles than standard policies. Additionally, your claim may go unpaid if the insurer becomes insolvent.
If you are unable to obtain a surplus line policy or prefer other options, you can look into Fair Access to Insurance Requirements (FAIR) plans. These are state-run programs that provide insurance to homeowners who may be too risky for standard insurance companies. FAIR plans are subsidized by the state and private insurers, collectively covering a home to mitigate the risk for individual carriers. While FAIR plans may be more expensive and offer less coverage than private insurance, they provide protection where none would otherwise exist. To qualify for FAIR coverage, you may need to make improvements to limit the risk of fire, theft, or water damage, such as upgrading electrical wiring, heating, or plumbing systems.
If you are unable to obtain insurance through any of these avenues, your mortgage lender may be able to find an insurer, but the premiums will likely be very high. Alternatively, the lender may buy insurance and charge you for it, which is called force-placed insurance or lender-placed insurance. This type of insurance usually only protects the lender, not the homeowner, and can cost twice as much as regular insurance.
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FAIR plans can help high-risk homeowners
FAIR (Fair Access to Insurance Requirements) plans are state-mandated property insurance plans that provide coverage to high-risk homeowners who are unable to obtain insurance in the regular market. These plans are typically used as a last resort and provide basic coverage for properties that are considered high-risk or difficult to insure due to factors such as location, age, or type of construction.
FAIR plans were created in the 1960s to make insurance available in areas with abnormally high exposure to risks beyond their control, such as severe weather, high crime rates, or outdated systems. These plans are insurance pools that sell property insurance to people who can't get coverage in the voluntary market. They are subsidized by the state and private insurers, which collectively cover a home, thereby reducing the risk for any single carrier.
FAIR plans may cost more than private insurance and may offer less coverage, but they provide insurance protection where none would otherwise exist. All FAIR plans cover losses due to fire, vandalism, riot, and windstorms. To qualify for FAIR plan coverage, homeowners must make improvements that limit the risk of fire, theft, or water damage, such as upgrading electrical wiring, heating, or plumbing systems.
As of 2025, 34 states and Washington, D.C., offer or plan to offer FAIR plans to high-risk homeowners. To be eligible, homeowners must demonstrate that they have been denied coverage multiple times by private insurance companies. FAIR plans are intended to be a temporary solution while homeowners continue to seek private insurance.
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Surplus line insurance covers unique risks
If you're unable to obtain homeowners insurance, there are several options to consider. Firstly, understand the reason for the rejection, as it could be due to factors related to you or your home. For instance, having bad credit, living in an area prone to natural disasters or high crime rates, or having a history of frequent claims can make it challenging to secure insurance.
One option to explore is your state's Fair Access to Insurance Requirements (FAIR) plan. FAIR plans are designed to provide insurance to high-risk homeowners who struggle to obtain coverage through the standard market. These plans are subsidized by the state and private insurers, mitigating the risk for individual carriers. FAIR plans may have higher costs and offer limited coverage, but they provide essential protection for high-risk homes.
Additionally, surplus line insurance, also known as excess and surplus (E&S) insurance, can be an option for those unable to secure coverage through traditional carriers. Surplus line insurance covers unique risks that typical insurance companies are unwilling or unable to insure. This type of insurance is often more expensive and may have more exclusions and higher deductibles. Surplus line insurers are not bound by the same state regulations as standard carriers, allowing them to take on higher risks. They can provide coverage for nonstandard risks, such as special events, moving hazardous materials, or insuring valuable items like art collections.
Surplus line insurance is typically purchased by businesses, but homeowners who have made significant efforts to obtain standard insurance and received multiple rejections may also qualify. It's important to note that surplus line companies are subject to certain consumer protection regulations, such as unfair claims settlement rules, and they are required to maintain a minimum level of capital and surplus.
If you're considering surplus line insurance, it's recommended to consult a licensed agent or insurance producer who can guide you through the process and help you find coverage through a licensed surplus line broker. They can assist in navigating the nuances of surplus line insurance and ensuring you find the right coverage for your unique situation.
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You may be rejected due to a poor insurance score
Homeowners insurance is a safety net to protect your biggest investment. However, not everyone gets approved for a policy. You may be rejected due to a poor insurance score. Insurance scores are based on your payment history, credit mix, the length of your credit history, and other financial factors. A score of 500 or less is considered poor and may result in rejection. In some states, your credit history and insurance scores can affect your insurance offers and rates. In states that allow insurance companies to consider your credit, your history of on-time payments accounts for 40% of your insurance score.
If you have a poor insurance score, you may have to pay higher premiums. Poor credit may lead to higher premiums, and you may find it challenging to find affordable insurance. Some companies may not weigh credit history heavily when determining premiums. If you live in California, Maryland, or Massachusetts, you may find it easier to get insurance as these states ban using credit to determine insurance rates.
If you have been rejected for homeowners insurance, you can try purchasing coverage through your state's Fair Access to Insurance Requirements (FAIR) plan. These plans enable high-risk homeowners to get coverage. FAIR plans are subsidized by the state and private insurers, collectively covering a home and mitigating the risk for individual carriers. FAIR plans may cost more than private insurance and offer less coverage, but they provide protection where none would otherwise exist.
If your home is at least 40 years old, you may qualify for an HO-8 policy, intended for older houses where the cost of repair may outweigh the fair market value. HO-8 insurance covers specific perils, typically fire, theft, and vandalism, and pays out the actual cash value of your possessions after depreciation. Surplus line insurance covers properties with unique risks that traditional carriers cannot or will not insure. Most surplus line policies are taken out by businesses, but a homeowner who has received three to five rejections from standard insurers may qualify.
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You can shop around for a new policy
If you are unable to obtain homeowners insurance, you can shop around for a new policy. Shopping for home insurance is like shopping for any other product; you can look for the policy that best meets your needs and budget. You can get quotes online, by calling companies directly, or by working with an independent insurance agent who shops around on your behalf. You'll typically need to provide your insurance history, including past claims, the name of your most recent insurer, and your last date of coverage.
There are different types of home insurance policies, and it's important to understand the limits of your coverage to avoid unwanted surprises later. Most mortgage companies will require that you have a replacement cost policy as a condition of your loan. Make sure you have enough coverage to replace your house and your personal property if they are destroyed. Depending on where you live and what you're insuring, you might need more coverage. For example, if you live in an area prone to severe weather, such as hurricanes, windstorms, or hail, you may need additional coverage.
If you've been turned down for homeowners insurance multiple times, you may want to consider a Fair Access to Insurance Requirements (FAIR) plan. These plans are available in more than 30 states and enable high-risk homeowners to obtain coverage. FAIR plans are subsidized by the state and private insurers, collectively covering a home and mitigating the risk for individual carriers. FAIR plans may cost more than private insurance and offer less coverage, but they provide protection where it might not otherwise be available.
Additionally, if your home is at least 40 years old, you may qualify for an HO-8 policy, which is designed for older houses where the cost of repair may exceed the fair market value. This type of policy typically covers specific perils, such as fire, theft, and vandalism, and pays out the actual cash value of your possessions after depreciation. Surplus line insurance is another option for properties with unique risks that traditional carriers cannot or will not insure. However, surplus line policies may have more exclusions and higher deductibles than standard policies.
Remember, requesting home insurance quotes does not commit you to purchasing a new policy, and it won't hurt your credit score. Shopping around for home insurance can help you find better rates, improve your coverage, and build a strong relationship with a trusted insurer.
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