Reasons that you might not qualify for homeowners insurance
Homeowners’ insurance will cost different amounts for different people. This is determined by the homeowner’s insurance Arizona company after they looking into different aspects to determine the risk of loss. If the minimum standards are not met, then you may be ineligible for home insurance.
Below are the reasons why some people could be ineligible for home insurance.
Credit Score Matters
Insurance companies will check into a person’s credit history to see if they are likely to file a claim. People with a good financial background are a preferred choice because they will rarely file a claim. This is an accurate way of determining the cost of homeowners insurance.
A very low credit score will lead to the denial of potential insurance coverage due to the risk associated with it.
History of Claims
Past claims or losses may make someone ineligible for homeowners insurance. A person will be seen as a high risk if they have filed many claims in the past. If a property has had a lot of previous claims, it might get denied insurance, since it will be considered very risky.
State of the Property
If the property you want to purchase is in a bad state, it may make you ineligible. A dirty home with broken parts like windows, roofs, and cracked walls may be considered a risk factor. A high risk of fire may also make it ineligible for insurance. Damaged property will need to be repaired satisfactorily before any insurance can be issued.
Modular Homes or Trailers
These are typically homes built in a factory, and then they are transported and installed on a foundation. Homeowners’ insurance decides on its eligibility based on its condition. Its age may also be a limiting factor apart from its location.
Type of Animals Living in the House
The kind of animals kept in a home will greatly determine its eligibility for insurance coverage. Homes with dogs are preferred, but this again depends on the type of dog. Dogs which are vicious will be more expensive to insure as compared to less vicious ones. If the dog has had a case of attacking a person, then the homeowner may be denied insurance.
Homeowners with unusual pets like snakes may not get insurance for their pets. They can purchase insurance for their pets separately.
Location of the Home
The location of the home is a major factor to consider. Certain areas may be excluded from insurance coverage. Areas that are prone to natural disasters like hurricanes, storms, earthquakes, and others, may not be covered. It also varies from one insurance to another, based on their terms and conditions.
Homes in remote areas may be excluded from homeowners insurance Arizona coverage. This is especially true if they live far from a fire station. Fire risk protection for homes is very important to avoid property damage in case of a fire breakout. This is applicable especially in areas prone to lightning strikes. Flooded areas may also pose a great risk to insurers since the risk of property damage is high.