4 Factors That Could Make Your Home Uninsurable

Protecting your home and loved ones with homeowners insurance is crucial, whether you’re a current or future homeowner in Louisiana. Unfortunately, certain factors can make your home difficult to insure. This can lead to higher premiums, limited coverage, or even denial. Discover what makes a home “hard to insure” and your options for securing proper coverage.

1. Location

If your home is determined to be in a high-risk location, it can be lead to it being uninsurable. One of the main factors that contribute to whether a home is uninsurable are the effects of weather risks.

If your home is in an area that experiences frequent natural disasters, it can make your home uninsurable. The most common disaster Louisiana residents experience is if your home is susceptible to frequent flooding. Insurers see this as a high likelihood the property will experience a significant or complete loss at some point during the property’s life, which makes it very difficult to insure. Additionally, areas prone to wildfires, earthquakes and tornadoes can also experience difficulty insuring a property.

Lastly, if your home is too far from a fire station, insurers will consider this as higher risk. This is because if there is a house fire it is more likely the home will experience a complete loss due to the amount of time it takes the fire department to respond.

2. Unsafe Conditions

Attractive Nuisances

Under state law, homeowners are liable for third party injury due to an “attractive nuisance” like swimming pools, trampolines, tree houses, and play structures. Attractive nuisances are considered appealing but hazardous objects that may put people in danger. While many insurance companies won’t deny you coverage outright, they may require you to install a protective fence or gate around the object to help prevent unsupervised injury.

Dog Breeds

Many insurers will increase your rates, not include your dog in coverage, or simply not insure your home if you have a pet that falls into an “aggressive breed” category. The most commonly excluded dog breeds are:

• Akitas
• Alaskan Malamutes
• Any wolf breeds
• Chow chows
• Doberman pinschers
• German shepherds
• Great Danes
• Pit bulls
• Presa Canarios
• Rottweilers
• Siberian huskies
• Staffordshire terriers

However, certain states are beginning to ban breed discrimination thanks to dog advocate groups. While Louisiana still allows insurance companies to discriminate based on dog breeds, Colorado, Connecticut, Illinois, Michigan, Minnesota, Nevada, New York, and Pennsylvania disallow this.

If your home is excluded because of your dog’s breed, a good option to consider is pet liability insurance. This is a specialized policy that will cover all dog breed against most injuries or damage. This will allow you to keep your homeowners insurance that doesn’t include your dog in its coverage, while still protecting you in case of an incident involving your dog.

Building Materials

Building materials can be an important factor in a home’s insurability. For example, a home built with brick or brick veneer is less likely to burn down compared to a home built with typical frame construction.

Maintenance Issues

Many insurance companies believe that the better you look after your home, the less likely you will be to file a claim. This is why a cracked foundation, older roof, broken window, and even unkempt lawns can factor into your home’s insurance eligibility.

Home additions not built to code

While many times remodeling a home can lead to increased value, if a renovation is done improperly it can lead to a home being unsafe to live in. If a home has been remodeled, the insurance provider will want to know that the upgrades meet building codes in the area and don’t compromise the existing electrical and plumbing systems.

3. Property’s Claim History

Previous claims can indicate underlying structural issues with a home, which could present a risk to your family and may contribute to an insurance company denying coverage. An insurance company also may deem a home too risky to insure if it has a history of multiple claims. This is why it’s important to check whether there has been insurance claims made before purchasing a property.

4. Credit-Based Insurance Score

Most people are familiar with a typical credit score, but many people are unaware of the Credit-Based Insurance Score, or CBI. CBI predicts the likelihood a homeowner will file a claim and how much it will cost. It can also factor in your credit report, driving record, location, and more, depending on your state laws.

Additionally, giving false information on insurance applications can lead to your policy being canceled and will lower your insurance score.

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While there are many factors that can contribute to your homes insurability, it’s location and how well it’s taken care of tend to be the most important. If you have questions about insurance for your home, please reach out to us via our website or by phone. We are happy to help!