What Happens If You Can’t Get Homeowner’s Insurance in Your State?

August 7, 2023

#1 Sell the Home
You can always just sell the home. You can buy another home in an area that may be insurable. You could leave the area and buy a home. You could rent instead. Lots of options. The real downside here is that selling an uninsurable home probably limits your number of buyers and the price you can get for it.

#2 Go Bare
Some people choose not to have homeowner’s insurance. That seems like a terrible idea unless you can afford to self-insure. That means lots of wealth and a relatively inexpensive home. If it burns to the ground or it’s leveled by a hurricane, you lose. But otherwise, you actually come out ahead financially, especially if the alternative is to fire-sale the house at a ridiculously low price. However, if your home has a mortgage, this probably isn’t really an option for you. Most mortgage companies require your home to be insured.

#3 Make Your House Insurable
Maybe your house is uninsurable because it has a terribly old roof or is in some other way exposed to more risk. Maybe you can replace the roof, and it will then be insurable. Or put in a sump pump. Or install hurricane straps or other roof-bracing measures. Maybe get rid of big trees overhanging your house. Or do some other modification that will now make the home insurable.

#4 Shop Harder
Maybe you just haven’t called enough insurance companies. Try harder. Call more. Until you have called all of them, you don’t really know you can’t get insurance.

#5 Use a Broker
You can save time and can even be more likely to get coverage if you use a professional. An insurance broker will know the market much better than you, and they may qualify you for coverage that you can’t get yourself. They can often find enough savings to more than make up for their cost.

#6 Call Citizens
Apparently, Citizens Property Insurance Corporation is the “only game in town” in many parts of the state. The nonprofit company has been taking over for other companies in large parts of Florida. Note that Citizens requires flood insurance with its policies.

#7 Call Tailrow
There’s a new company writing business in the state called Tailrow. Call them, too.

#8 Check for Other Causes of Uninsurability
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Moving away from the Florida-specific situation, consider other causes of not being insurable. These are generally broken down into the following categories:

Occupancy issues
Business use
Past claims
Let’s break down these issues a little more.