When an insurance company is looking at insuring a risk, your home, they will look at several factors to determine if the risk is insurable.
Unacceptable property risk-Is the property found in disrepair. An inspection will be performed on the property and if any deficiencies are found the property will be deemed unacceptable. Here are unacceptable conditions, Structures with:
· Unpainted or raw wood
· Rotten wood, damaged or unrepaired wood.
· Broken windows, torn window screens.
· Old roofs, patched roofs, roofs with broken shingles.
· Older homes without updates to electrical, plumbing, A/C and heat.
· What is in your yard; viscous dogs, trash, storage buildings in disrepair and trampolines.
The key here is to keep your home in insurable condition & safe.
Poor payment history-Your payment history is also reviewed upon applying for insurance. Poor payment history can cause your insurance premiums to be higher and can also make you a target for cancelation.
Large claims- If you have many large claims the insurance company sees you as being irresponsible or unsafe. The insurance company wants an insured to minimize damages to their home, so if there are claims they are smaller.
Too many claims- Generally speaking if you have too many claim over a period of years you will be deemed uninsurable.
Save your good claim history, and only file high value or important claims.
Home found vacant-Here most insurance companies will not insure vacant homes under standard dwelling or homeowners policies. If your home is vacant or your rental property becomes vacant let your agent know that it is vacant. If your property is vacant tell your agent, so they can write a special policy to insure that property.
Almost all insurance companies are now following the above underwriting guidelines, so remember keep your property and your credit in good repair.
"Your home is your largest asset and without insurance protection can be your largest loss."