5 Instances When It May Be Hard to Get Homeowners Insurance

5 Instances When It May Be Hard to Get Homeowners Insurance

Although homeowners insurance is not compulsory, it comes with various benefits especially when you need a home loan. Location, the age of your house, and your claim history are some of the factors that affect your chances of getting insurance for the home of your dreams. However, regardless of your situation, some insurance companies cover even high-risk properties although their rates are high. Here are 5 instances when you may struggle to get your house insured.

  1. Location in a disaster-prone area

Insurance companies consider the location of a home to determine the insurance rate. Buying a house in areas prone to natural disasters such as typhoons or property crime will reduce your chances of getting insurance. Homeowner insurance companies consider the chances of risk taking place to know whether to offer coverage or not. Sometimes, you may be lucky to find an insurer who will charge high premiums. However, there are instances when you may be unable to get one.

  1. A lot of claims

It’s advisable not to keep filing home insurance claims. Insurance companies will consider your claims on their record to establish your risk level. The higher the claims, the higher the insurance rates that you will get. Comprehensive Loss Underwriting Exchange or CLUE will keep your record whenever you file a claim and make the information easily accessible to insurers. Sometimes, homeowner insurance companies may refuse to cover you when you have lots of claims.

  1. Vacant homes

Insuring a vacant home could be expensive or even sometimes impossible. Apart from deteriorating faster than occupied homes, vacant houses also attract bad guys. Given that no one is living in such a house, there are high chances of some dangerous things going on uninterrupted. For instance, in case of an electrical fire or bursting pipes, there is no one to report or stop thereby leading to more damage.

  1. Presence of some animals

Although dogs are considered man’s best friend, there are some breeds that are known to be more aggressive than others. Given that your home insurance liability will pay for the costs as a result of dog bites, their presence or absence is a major determinant of your rates. In some instances, some insurance companies set a limit to cover for dog-biting requiring the owner to pay the extra cash in case a bite. Exotic pet owners have high chances of failing to get a home insurance policy.

  1. Old home

They say old is gold. However, when it comes to homeowners insurance, old homes attract higher rates than new ones. The uniqueness of most old homes makes them expensive to repair thereby forcing homeowner insurance to charge high rates. The outdated wiring and plumbing systems in these homes make them prone to damages such as fire. Consequently, most homeowner insurance companies will shy away from these buildings unless they’ve upgraded.

If you have been struggling to find homeowner insurance for your new home, contact us at any time. At Zawada Insurance Agency, we have connected thousands of residents in this area with reputable homeowners insurance. Let us know your current situation to provide the best advice that we can. Let us make your search for an insurer come to an end.