How to get homeowners insurance after being dropped

If you have a mortgage on your home, there’s a good chance your lender will require that you carry homeowners insurance. Although, homeowners insurance may not be a requirement if your home is paid off.

What happens if you’re denied homeowners insurance coverage? If you’ve recently been dropped from your policy you may thinking what to do next. In this article we will go over a few basics regarding home insurance and steps to take to getting a new policy after you’ve been dropped. 

Does my home insurance company have the right to refuse me coverage?

In short, yes. Your homeowners insurance company has the right to refuse to insure you. For the most part an insurance company will choose not to insure you if it looks as if you’re a very risky client. 

There are several reasons why an insurance company will deny you coverage. This can be determined during the application process or when it comes time to renew. Below we list a few reason that could effect your coverage. Please keep in mind that every state has individual rules and each home insurance company is different as well. 

If you need immediate help please reach out to your agent or the insurance company you’re with. Anyone in California that needs help finding a better policy or homeowners insurance in general, please give us a call! All of the agents at Eugene C Yates Insurance Agency are experts when it comes to home insurance and can get you the policy you need. Call us today at 916 313 6100.

Did you miss any payments

You may pay for your home insurance through the escrow company when you make your monthly payment or you may pay in annually directly to the homeowners insurance company. Either way you’re expected to make regular on time payments. Failure to do so can result in you appearing to be more of a risk than expected. 

Missing payments can also result in a lapse in coverage which can affect you in other ways. Making on time payments will leave you in the good graces of the insurance company. 

Do you have a history of filing a lot of insurance claims

Homeowners insurance covers your home in a variety of ways. You may have a lot of things that come up that need to be repaired. If there are situations in your power to fix something yourself, instead of using your home insurance you may be better off in the long run. 

Filing a lot of homeowners insurance claims results in you appearing like a more risky client. The more risk it looks to insure you, the higher your rates will be and there’s also the chance you will not be insurable. 

You have a bad credit score / insurance score

Some states will base your rate and if you are insurable off your credit score (FICO). You also have an insurance score which is different. Your insurance score is based off a few different factors and can effect whether or not you can get covered. 

The area you live in is an extremely high risk 

You may know if you live in a high risk area. Maybe you often have to deal with wild fires, tornadoes or hurricanes. If you believe you live in a high risk area you may want to look into an insurance company that specializes in coverage for natural disasters. 

Did your home pass the recent inspection

When it comes time to renew your home insurance policy the insurance company will more than likely send out an inspector to review your property and make an assessment. They may check for hazards, wear and tear, new or old safety features and a long list of other things. 

If it looks as if your home is in bad shape and looks to be a lot more risk than anticipated, you may be denied coverage. If the inspector comes by during a renewal there’s a chance you could be dropped as well. 

How to I get homeowners insurance if I’ve been dropped?

Getting denied coverage or dropped from your current policy can be frustrating and time consuming. The good news is there are options after you’ve been denied coverage. 

If you had a homeowners insurance policy in place you should have a little time to work things out. Typically an insurance company will give you 30-45 days notice before terminating your coverage. So, you’ll have roughly a month to find new coverage. The easiest way to get this taken care of is to speak to a professional insurance agent. 

Your insurance agent can look into the reasons why you were dropped and look for solutions. The agents at Eugene C Yates Insurance Agency have access to some of the best home insurance companies in the industry. They can take a look at your situation and determine the policy you need or who may offer you coverage. Call us today at 916 313 6100.

If you were denied renewal due to a failed inspection you may have the option of making the proper repairs to get your policy back. You will need to reach out to your insurance company to have these questions answered. 

What if I was denied homeowners insurance

Some states offer Fair Access Insurance Requirement Plans. These can provide coverage to high risk clients and areas at a premium cost. The first step would be to find out why you were denied, then find the solution. Can this be fixed? If so take the steps necessary to get your coverage back. If it can’t be fixed, your best bet is to speak to an insurance professional. 

If you’re in California and need a great insurance company, give us a call. The agents at Eugene C Yates Insurance Agency are nice people and they always have great rates! Call us today we’d love to speak with you! 916 313 6100