Finding Coverage When You Can’t Get Homeowners Insurance

Summary: If you can’t find homeowners insurance, you’re not alone—almost 14% of homeowners are missing coverage. Whether it’s due to past claims, the risk level of your home, or your area’s insurance market, going without coverage puts you at financial risk. You may even end up with costly force-placed insurance through your lender. But don’t worry, options like comparing insurers or exploring FAIR Plans can help you find the right coverage at an affordable price. Estimated Read Time: 8 mins

Table of Contents:

1. What Happens if You Can’t Get Homeowners Insurance?
2. Your Guide to Getting Coverage When You Can’t Find Homeowners Insurance
3. Seven Reasons Finding Home Insurance May Be Difficult
4. Avoid Force-Placed Coverage if You Can’t Get Homeowners Insurance

Homeowners insurance companies can cancel your insurance for a number of reasons—maybe you filed too many claims in a short period of time, maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection. If you can’t get home insurance, it can feel like an impossible place to be, but not to fear, options are still available.

What Happens if You Can’t Get Homeowners Insurance?

It can happen for many reasons, and when you can’t get homeowners insurance after a claim, your policy is set to expire, or when moving, you can all feel lost.

What happens if you are denied homeowners insurance will depend heavily on whether or not you have a mortgage.

For example, if you don’t have a lender to deal with, then you could go without coverage. However, you take on immense risk in doing so, and it’s not recommended.

If you do have a lender, maintaining home insurance is going to be mandatory, as a condition of your loan, so if you can’t find home insurance, expect them to do so for you.

It’s called force-placed coverage, and you can expect higher premiums with fewer protections—far from ideal.

The good news is that if you find yourself in a situation where you can’t get home insurance, you still have plenty of options to find affordable protections that are there when you need them.

You’re Not Alone

Failing to find home insurance can feel like a lonely place to be, however, it’s more common than you might think.

Nearly 14% of owner-occupied homes in the United States do not have homeowners insurance, posing a serious financial threat to the millions of properties forgoing this critical protection.

While not everyone has been denied coverage, it’s still an unsettling statistic, as those without proper protection risk everything from major property damage to liability issues as a result.

Combined with several homeowners finding their policies non-renewed due to changing weather patterns and carriers reevaluating their risks, not finding home insurance as easily as before continues to be a growing problem throughout the United States.

Fortunately, homeowners have affordable choices even when it seems that their options are few. Taking the right steps to find home insurance after you’ve been denied will keep you on track for proper protection and greater peace of mind.

Your Guide to Getting Coverage When You Can’t Find Homeowners Insurance

Understanding why you can’t get homeowners insurance and what to do about it is the key to keeping your property covered. If you’re having trouble getting a policy, here’s what you need to do:

Investigate Why You’re Being Denied

If you get denied, don’t panic, and definitely don’t be afraid to ask why. Sometimes it’s just a mistake or old information that can be cleared up.

In the event it’s something you can fix, like a small repair, you might be able to make a few changes and get approved.

It also helps to ask around. Check with your neighbors to see who covers their homes.

If you just bought your place, your real estate agent might know which company insured it before. A little asking around can make a big difference when you’re hunting for coverage.

Compare Multiple Home Insurance Carriers

Just because one company says no doesn’t mean they all will. If you’ve been turned down, don’t get discouraged, as it’s smart to shop around and compare quotes from multiple carriers.

Every insurance company sees risk a little differently, and there are many reasons why one might say yes when others say no:

• Different Rules: Every insurer has its own way of judging risk. What’s a dealbreaker for one company might not bother another.
• Specialties Matter: Some companies focus on harder-to-cover homes, like older houses or homes near the coast.
• Your Home’s Condition: If you’ve kept your home in good shape or made upgrades like a new roof or updated wiring, that can work in your favor.
• Claims History: One insurer might be more forgiving if you’ve only had a small claim or a weather-related loss.
• Risk-Reducing Features: Adding things like hurricane shutters, flood elevation, or a security system to your home can help convince a company you’re worth the risk.
• Bundling Discounts: If you also buy auto or other insurance from the same company, they might be more willing to offer you a homeowners policy.
• Newer Companies: Some insurers looking to grow will be more flexible with who they accept.

If you’re not sure where to look next, an independent insurance agent can help match you with companies that better fit your situation.

Look Into FAIR Plans

If you’re having trouble finding home insurance, you might qualify for help through a FAIR Plan. These plans are designed for high-risk homeowners who can’t get coverage through the regular market.

As of 2025, there are 34 states plus Washington, D.C., offering FAIR programs:

• Alabama
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• New Jersey
• New Mexico
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• Texas
• Virginia
• Washington
• Washington, D.C.
• West Virginia
• Wisconsin

FAIR Plans are backed by the state and private insurers working together. They’re meant to be a last resort, not your first choice.

To qualify, you usually have to show proof that several companies have denied you, sometimes three or more.

Keep in mind that FAIR Plan policies are pretty basic.

They often only cover your home and belongings against specific risks and might not include liability or extra living expenses. Most also insure your home for actual cash value, not full replacement cost.

Even though FAIR Plans can be a lifeline, many homeowners still often find better options by working with an experienced insurance broker.

Seek Alternative Forms of Insurance

If you’re struggling to find standard home insurance, there are a few alternative options that might work for you.

For older homes, especially ones over 40 years old, an HO-8 policy could be a good fit. It’s made for houses where repairs might cost more than the home’s current market value.

HO-8 policies cover basic risks like fire, theft, and vandalism, and they pay out based on Actual Cash Value (ACV) after depreciation.

Another option is a dwelling fire policy. While it mainly covers fire damage, it can sometimes help if your home doesn’t meet regular insurance standards.

Just know that these policies usually have limited protection for other types of damage.

If traditional companies still won’t insure your home, you might have to look into surplus line insurance.

These policies cover unique or high-risk homes but come with some serious trade-offs.

They often have more exclusions, higher deductibles, and less protection if the insurer goes out of business, meaning you could be left without help if something happens.

Before you choose a surplus policy, be sure to ask lots of questions, understand the risks, and make sure you’ve explored every standard insurance option first.

Seven Reasons Finding Home Insurance May Be Difficult

Sometimes it’s not just one thing that makes getting home insurance tricky. Here’s a quick breakdown of what might be getting in the way:

• Your Home’s in a Risky Spot: Living in a tornado zone, wildfire-prone area, or high-crime neighborhood makes insurers nervous. Adding security upgrades or storm protections might help calm their fears.
• Hidden Hazards on Your Property: That cozy wood stove or dreamy backyard pool? Insurance companies see extra risks. Some features can make getting coverage harder, even if you love them.
• It’s an Older Home: Old homes have lots of charm, but sometimes problems develop. If the wiring, plumbing, or roof hasn’t been updated, insurers might think twice about signing you up.
• Your Insurance Score Needs Work: A low insurance score (kind of like your credit score) can cause problems. If it’s under 500, you might face more rejections than approvals.
• You Let Coverage Lapse: Gaps in your insurance history are a big red flag. Carriers want to know you’ll stick with the policy and not leave the home uninsured.
• Too Many Past Claims: Homes with lots of past claims, or homeowners who have filed a lot, make insurers worry about future payouts. Even small claims can add up in their eyes.
• You Don’t Live There Full-Time: Vacation homes and second houses are riskier to insure because no one’s around to spot leaks, break-ins, or fires quickly. Some insurers just aren’t willing to take that chance.

Avoid Force-Placed Coverage if You Can’t Get Homeowners Insurance

If you can’t find home insurance and have a mortgage, your lender will likely step in and place force-placed insurance on your property.

Essentially, they’ll purchase a policy on your behalf and charge you for it, typically through your monthly mortgage payment.

For example, let’s say you’ve had trouble securing a new policy, or you’ve let your previous coverage lapse.

In this case, your lender will make sure their investment in your property is protected by buying a policy for you.

However, force-placed insurance is usually more expensive and provides limited coverage compared to a policy you might have chosen on your own.

The cost of the force-placed insurance will be added to your mortgage, which could significantly raise your monthly payments.

Your lender will notify you if this happens and may even give you a short grace period to find and secure your own coverage.

It’s important to act quickly to avoid these extra costs and make sure you have the right coverage in place.

This scenario is avoidable, so if you’re struggling to find coverage, don’t hesitate to keep shopping around or work with an insurance agent who can help you explore all available options.

Sources:

1 in 7 Homes Does Not Have Home Insurance as Premiums Skyrocket, Realtor. Accessed April 2025. https://www.realtor.com/news/trends/home-insurance-coverage-rates-data/