What can I do if I am denied homeowner’s insurance?
1. Speak or consult with an insurance agent.
First, it is a good idea to consult an insurance agent during the home buying process, rather than after the purchase has been finalized, especially if you are concerned your new home may be considered high risk. The insurance agent may help you determine if obtaining coverage for the home will be a difficult process, or if it is likely you will be denied for a standard policy. If you have already purchased the property and have tried and failed to obtain coverage for your home, there is no need to panic. If the agent cannot help you insure your home, they should be able to point you in the right direction. The agent may have access to local contacts that work with high-risk properties, or they may be able to obtain information about programs in your area that you could reach out to for the next steps.
2. Make improvements to your property or home
If you have been denied coverage due to your home being older or in disrepair, you can make improvements to the property or to the home itself to improve your chances of being approved for a standard policy. For example, if you replace the roof, upgrade the electrical and plumbing systems, or install security features such as gates, cameras, and alarm systems, you can lower your high-risk status. Be sure to collect all documents that detail the improvements you have made to your home or property and bring them with you to speak with your insurance agent.
3. Contact the Insurance Department for the State of Texas
The Texas Department of Insurance at http://www.helpinsure.com//home/index.html contains information about homeowner’s insurance, including assistance with comparing rates in your area. If you can’t find the information you need by browsing their website, you can e-mail them directly at
4. Try to obtain insurance through programs such as FAIR insurance
The FAIR (Fair Access to Insurance Requirements) Plan was established in 1995 and addresses problems with insurance coverage and availability in struggling areas throughout the state. According to their website, https://www.texasfairplan.org/, the Texas FAIR Plan Association “provides coverage to residential properties that are denied by other insurance carriers.” In order to be eligible for coverage under this plan, you must have been denied coverage from at least two separate insurance companies in the state of Texas. There are other requirements for maintaining eligibility that is explained on the website.
The bottom line is that denial of homeowner’s insurance coverage is not a dead end. If you do decide to purchase a home that is considered high-risk, and you are denied a claim, there are steps you can take to improve your chances of being approved the next time you apply. If you are denied more than once, there are local and state programs that can help you obtain coverage as a last resort. The best place to start is by speaking with a local agent.