You’ve been there before, right? You had a bit of bad luck, some things went wrong, and now you’ve got a claim history that’s longer than your grocery list. Insurers are turning you down left and right, and you’re starting to worry you’ll never get home insurance again. Trust me, I’ve been there too. But here’s the good news: it’s not the end of the world. I learned that the hard way, and now I’m here to help you figure it out.
Understanding Your Situation
First, it’s important to understand where you stand. A claim history can make things tough, but it’s not an automatic deal-breaker. Insurers look at a few key things:
- Number of claims: The more claims you’ve made, the riskier you look.
- Severity of claims: Big, costly claims can be a red flag.
- Time since last claim: The longer it’s been since your last claim, the better.
You’ll need to know exactly what’s in your file. Get a copy of your Full Loss Underwriting Exchange (CLUE) report. It’s a record of your insurance claims, and you’re entitled to one free copy per year. This will give you a clear picture of what insurers are seeing.
Steps to Getting Home Insurance
Once you know your situation, it’s time to take action. Here’s the step-by-step process I used to get coverage after my claim history scared off a few insurers.
Step 1: Shop Around
Don’t just stick with the big-name insurers. They often have stricter underwriting guidelines, especially with claim history. You might have better luck with smaller, regional insurers or specialty insurers that focus on high-risk clients.
Start with a few online quotes. You can often find insurers that specialize in high-risk home insurance. But don’t stop there—pick up the phone and call around too. Sometimes, talking to an agent can help you find options you wouldn’t have considered otherwise.
- Look for insurers that offer high-risk home insurance.
- Check with regional insurers—they might be more flexible.
- Talk to an independent insurance agent—they can shop around for you.
Step 2: Be Honest and Upfront
Here’s the thing: insurers are going to find out about your claim history eventually. It’s better to be upfront about it from the start. If you try to hide it or downplay it, you’re just setting yourself up for trouble down the road.
When you’re talking to insurers, be honest about your past claims. Explain what happened and what you’ve done to prevent similar issues in the future. If you’ve made any improvements to your home—like installing a new security system or fixing a leaky roof—they’ll want to know about those too.
Step 3: Consider a Higher Deductible
If you’re having trouble finding coverage, a higher deductible might help. A higher deductible means you’re taking on more of the risk, which can make you a more attractive client to insurers. Just make sure you can afford the deductible if you do need to make a claim.
You can also look into increasing your deductible over time. Start with a higher deductible to get coverage now, and then lower it as your claim history improves.
Step 4: Look Into State-Assisted Programs
If you’re still having trouble finding coverage, don’t give up just yet. Many states have programs to help people in your situation. These programs are often called Fair Access to Insurance Requirements (FAIR) plans or something similar. They provide insurance to people who can’t get coverage through traditional means.
Check with your state’s insurance department to see if you qualify. The coverage might be a bit more expensive, but it’s better than going without insurance altogether.
Step 5: Work on Improving Your Risk Profile
While you’re shopping around, don’t forget to work on improving your risk profile. The better you look on paper, the easier it’ll be to find coverage—and the lower your premiums will be. Here are a few things you can do:
- Make home improvements: Fix any issues that might lead to future claims, like a leaky roof or outdated electrical wiring.
- Install safety features: Things like smoke detectors, security systems, and deadbolt locks can make your home safer—and your insurance cheaper.
- Bundle your policies: If you’ve car insurance, bundling it with your home insurance can sometimes save you money.
- Raise your credit score: In some states, insurers look at your credit score when determining your premium. A higher score can mean lower rates.
What to Do If You’re Still Denied
Let’s say you’ve tried everything and you’re still getting denied. Don’t panic. There are still options available to you.
Option 1: Get a Non-Standard Policy
If traditional insurers won’t cover you, you might need to look into a non-standard policy. These policies are designed for high-risk clients and often come with higher premiums. But they’re better than nothing, and they can provide the coverage you need while you work on improving your claim history.
Option 2: Talk to a Broker
If you’re still having trouble, it might be time to bring in a professional. An insurance broker can help you find coverage, even if you’ve been denied elsewhere. they’ve access to a wider range of insurers and can often find options you wouldn’t have considered on your own.
Option 3: Re-evaluate Your Home
If you’re really stuck, it might be time to take a hard look at your home. Is there something about it that’s making it a high-risk property? Maybe it’s in a flood zone, or maybe it’s an older home with outdated features. If that’s the case, you might need to make some big changes—like moving to a different home or making significant improvements—to get the coverage you need.
This might sound like a lot, and it’s. But remember, I’ve been there too. I know how frustrating it can be to feel like you’re stuck. But you’re not. There are options out there, and with a little patience and persistence, you can find the coverage you need.
