Buying or owning a home is a major investment—but what happens if you can’t get it insured? In some cases, insurers may refuse to provide coverage, declaring the home “uninsurable.” While that word may sound final, understanding the reasons behind it can help you take steps to change the situation.
Let’s break down what makes a house uninsurable—and what you can do about it.
🚫 Common Reasons a House Is Considered Uninsurable
1. Major Structural Issues
If the home has a compromised foundation, severe roof damage, rotting wood, or pest infestations (like termites), insurers see it as a high risk. Homes in disrepair are more likely to result in large claims, making them too risky for many insurance companies.
2. Outdated or Unsafe Systems
Older homes with original:
- Knob-and-tube or aluminum wiring
- Galvanized or lead plumbing
- Oil heating tanks or unvented stoves
…are considered fire or flood hazards. If these systems haven’t been upgraded, many insurers will deny coverage until improvements are made.
3. High-Risk Location
Houses located in areas prone to:
- Wildfires
- Floods
- Hurricanes
- Earthquakes
…can be flagged as uninsurable by standard carriers. Even if the home is structurally sound, its location alone may increase the chances of a catastrophic loss.
4. Neglected or Vacant Property
A home that has been vacant for a long time or is visibly neglected (boarded-up windows, overgrown yard, damaged exterior) raises concern for theft, vandalism, or hidden damage. Insurers are wary of writing policies for these types of homes.
5. Multiple or Severe Insurance Claims
A property with a long or recent history of large insurance claims—especially water or fire damage—can scare off insurers. Even if the damage has been repaired, the claims history follows the home and can result in denial.
6. Code Violations or Unpermitted Work
Has the home been remodeled without permits? Are there code violations from the city? Insurance companies often decline to cover homes that have been modified illegally or don’t meet building safety standards.
✅ What to Do If Your Home Is Uninsurable
If your house has been denied coverage, don’t panic. Here’s what you can do:
- Make the Necessary Repairs
Fix structural problems, modernize plumbing and electrical systems, and update any old roofing. - Bring the Home Up to Code
Work with local authorities to ensure all modifications are legal and permitted. - Get a Professional Home Inspection
A clean inspection report can help you negotiate with insurers and prove the home is safe. - Work with an Independent Agent
Agencies like Eugene C. Yates Insurance have access to specialty insurers and high-risk policies—including options like the California FAIR Plan—for homes that don’t qualify for traditional coverage.
Final Thoughts
While some homes may be considered uninsurable by standard providers, that doesn’t mean you’re out of options. By understanding the risks and working with the right insurance partner, you can get your home covered—even if it’s older, damaged, or in a high-risk area.
Need help insuring a difficult or high-risk property in Sacramento?
Contact the experts at Eugene C. Yates Insurance Agency. We’ll help you explore every option and find coverage that fits your home and your budget.