Are You Hard to Insure?

Some consumers suffer from the inability to get insurance on their home or life. Although it seems unfair, insurance companies are allowed to deny coverage for many different reasons. If an insurance company comes to survey your household and sees threats they will often turn their heads and deny your application. It can be a very frustrating time for people because insurance is necessary for all homes and lives.

What Can Make You Hard to Insure?

When talking to insurance companies we discovered several different characteristics that are similar in denied applications. If you have anything of this nature, make sure that you either take care of it before you apply for insurance or at least realize that your actions or lifestyles may put you in the high risk category.

• Location

If you live in a high prone tornado area or one that has been hit by a record number of floods in the past 10 years, you may be a concern for insurance companies. Location is one of the main reasons why you can be denied home insurance because it is too high of a risk for insurance companies. Before you buy a house make sure that you survey the area and the history of the area. Although you may think you are getting a great price for a house you may not realize that you will be denied insurance countless times.

• Hazards

A swimming pool or a trampoline may seem like the perfect backyard addition, right? Both things may be fun but they are consider hazards in the eye of an insurance company. Make sure to properly fence in your pool and put up protection around your trampoline. This can make insurance companies ignore such potential hazards.

• Furry Friends

You may see your dog’s temper as cute but think again when it comes to an insurance inspection. Insurance agents have reported denying coverage to homes that have angry dogs. It may seem like an unfair way of denying coverage but remember each individual company has it’s own regulations.

• Fire Prone

Do you have a house with a cozy fireplace or wood burner stove? This can be a major threat and reason for insurance companies to up your insurance rates. Insurance companies will look carefully to see how easily the fire department can be reached, if there is adequate fire hydrants in range and if they house is easily flammable.

• Previous Claims

If you are applying for new insurance you must realize that your history will haunt you. Let’s say in the past 10 years you have made substantial 5 insurance claims. This is an immediate red flag for new insurance companies and an easy way to get rejected from insurance. If you have the tendency to make a lot of claims you become expensive for the company and therefore not worth their services.

Additional Resources:

• Insurance FAQs
• Coalition Against Insurance Fraud