What if I can't get coverage?
If you live in a home that is considered "high-risk" or plan to
move to a high-risk location, you may have difficulty obtaining
an insurance policy.
What constitutes high-risk?
- If your home is located in an area prone to severe weather such
as hurricanes, windstorms, tornadoes or hail.
- If you live in an urban area with high crime, vandalism and
theft.
- If your home has an old plumbing, electrical and/or heating
system, because these pose a higher chance of causing fire or
water damage.
If one or two insurers turn you down, don’t despair. You do have other
options. If you are buying a new home, ask the real estate agent,
mortgage lender or builder for names of companies that write in your
area. If it’s an existing home, find out from the previous owners
who insured the house. If you still can’t find coverage, consider
the following:
- Ask for help from your current insurance professional.
Talk to the agent or company representative that previously insured
your home or is currently insuring your car, boat or business.
If the problem is not where the house is located, but the condition
that it is in, find out what type of improvements or disaster-resistant
features would be needed to make your home more insurable. The
Institute for Business & Home Safety (IBHS) also provides
information on natural hazards, community land use and ways you
can protect your property from damage. It can be reached at http://www.ibhs.org/
- Talk to your neighbors and find out which insurers they use.
Get the names of any agents who may be knowledgeable about the
specific risks in your neighborhood.
- Call your state insurance department.
It can generally provide you with a list of insurers that write
in your area. It might also have information regarding community
groups that help homeowners with insurance problems such as the
Neighborhood Reinvestment Corporation ( http://www.nw.org/nrc/ ).
If you still can’t get insurance, find out if your state has a
special insurance plan known as shared market. Generally, two types
of plans exist:
1. FAIR Plans
Fair Access to Insurance Requirements (FAIR) Plans were created
in the 1960s to make insurance available in areas that had abnormally
high exposure to risks over which they had no control. These plans
are insurance pools that sell property insurance to people who can’t
get coverage in the voluntary market.
FAIR Plan policies may cost more than private insurance and may
offer less coverage, but they offer insurance protection where none
would otherwise exist. All FAIR Plans cover losses due to fire,
vandalism, riot and windstorm. About a dozen states have some form
of a standard homeowners policy, which includes liability. In California,
the Plan covers brush fires. Georgia and New York provide wind and
hail coverage for certain coastal communities.
In order to qualify for FAIR Plan coverage, you must:
- Make improvements that limit the risk of fire, theft or water
damage, such as upgrading your electrical wiring, heating or plumbing
systems, repairing your roof or improving security.
- If you do not correct conditions that make your home prone to
losses, the FAIR Plan administrator has the right to deny insurance
coverage.
Below are the states that offer FAIR Plan Insurance or assistance
in getting coverage, and the telephone numbers of Plan administrators:
FAIR Plan Administrator Phone Numbers
State |
Telephone
number |
| Alabama |
334-943-4029 |
| California |
213-487-0111 |
| Connecticut |
860-528-9546 |
| Delaware |
215-629-8800 |
| District of Columbia |
202-393-4640 |
| Florida JUA |
850-513-3700 |
| Florida Windstorm Und. Assoc. |
904-296-6105 |
| Georgia |
770-923-7431 |
| Hawaii |
808-531-1311 |
| Illinois |
312-861-0385 |
| Indiana |
317-264-2310 |
| Iowa |
515-255-9531 |
| Kansas |
785-271-2300 |
| Kentucky |
502-425-9998 |
| Louisiana FAIR Plan |
504-831-6930 |
| Louisiana Beach Plan |
504-831-6930 |
| Maryland |
410-539-6808 |
| Massachusetts |
617-723-3800 |
| Michigan |
313-877-7400 |
| Minnesota |
612-338-7584 |
| Mississippi |
601-981-2915 |
| Missouri |
314-421-0170 |
| New Jersey |
973-622-3838 |
| New Mexico |
505-878-9563 |
| New York |
212-208-9700 |
| Ohio |
614-839-6446 |
| Oregon |
503-643-5448 |
| Pennsylvania |
215-629-8800 |
| Rhode Island |
617-723-3800 |
| South Carolina |
803-737-6180 |
| Texas |
512-899-4900 |
| Virginia |
804-358-0416 |
| Washington |
206-367-6270 |
| West Virginia |
215-629-8800 |
| Wisconsin |
414-291-5353 |
2. Beach and Windstorm Plans
In seven Atlantic and Gulf states, there is a counterpart to the
FAIR Plans called Beach and Windstorm Plans. They provide residents
and business owners, in designated areas, with coverage against
hurricanes and other severe windstorms.
Windstorm Plans in Florida, Mississippi, South Carolina and Texas
offer coverage only against wind and hail damage. Plans in Alabama
and North Carolina offer coverage for fire as well. In New York,
the Coastal Market Assistance Plan helps homeowners get coverage
if their application has been rejected by at least three private
insurers. With Permission © Insurance
Information Institute, Inc. - ALL RIGHTS RESERVED -
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