Why do people get refused home insurance?

Whenever you get a home insurance quote it asks you if you have ever been refused insurance. Why would that happen? And if it does, does it count against you for the rest of your life? Are there any insurers willing to insure such people?

Bad credit rating, or living in a dodgy area maybe?

High risk,excessive or fraudulent claims.

Insurers refuse people who are high risk or in high risk areas. They may also refuse people who have claimed excessively or been found guilty of dishonesty/theft. It could well be something that stays with you if you do not move to a safer/better area

if your house is in a flood zone where floods happen offten(as it will cost them money) or in a known tornatdo zone, and so on, yer their are companys for insuring them, but they cost more!

depends what area you live in, if its prone to floods etc

It can also depend on what pets you have if any

For example i own a Siberian husky who are prone to destructive behaviour, so getting home insurance for me was a nightmare!

companies have a list of "acceptable" risks. if your home is located in a flood zone, bad neighborhood, you have the wrong breed of dog, have a trampoline..etc they reserve the right to say no to you. but there are companies out there that will insure you. it may not be cheap depending on what kind of "risk" you have. your state web page has a list of property and casualty insurers that are active for business in your state.

Insurance companies are in the business of making money. They are not a non profit organization. If a person has sued an insurance company or made a lot of claims they would most likely be refused home owner insurance. But there are always alternatives its just that they cost more.

some companies will refuse to insure a home that is heated by wood alone or coal because these heating systems are high risk if not used properly. Usually if an oil or electric system is put in the dwelling then they can be insured.

some ppl do the dirt on insurance companies like claiming all the time so other insurancies dont want to fall for it too but i do believe there are other insurancies out there that would insure ur homes and other things

See all those people in those floods last month ?

The ones making expensive claims will be refused next time round.

There are may be any problem.

There are two aspects of insurance: physical hazard and moral hazard.

Physical Hazard - you live in an area that the insurance company won't cover per se - e.g. an inner city area without adequate security, a flood plain or the house is a non-standard construction e.g. thatch roof that again the insurance company won't cover. There is not much of a problem if an insurer won't cover you because of those factors as other's will.

Moral Hazard - This could include previous criminal convictions, fraudulent claims, certain occupations. Anything involving moral turpitude would involve a specialist insurance broker but cover is available.

Claims: A poor claims history with no evidence of trying to reduce future exposure is also a problem.

In theory you would have to disclose the fact that insurance has been refused for ever (worse than criminal convictions - at least under the rehabilitation of offenders act certain convictions are spent after a time).

As you may expect having had an insurance policy cancelled is worse than having had insurance refused iff the only reason why the insurance was refused was standard underwriting criteria.

You won't be able to get quotes online if you have had insurance refused but a local insurance broker should be able to fit you up. If you contact BIBA (their organisation) they can put you in touch with a local firm.

maybe its because they have made a fraudulent claim.

Sometimes people get refused if they were formally asked to leave their previous home because of offensive sexual escapades that disturbed the neighbors too frequently.

It happened to me. We used to have gang bangs and love trains at the house but the neighbors asked us to leave.

We tried to be nice and invited them, but I guess they were too good for us. They weren't even that sexy.

So we left and when we tried to buy another home, the insurance company told us that we had been blacklisted for "extreme freakiness."