Insurance Could Make Your Home Unaffordable

People often complain about the cost of their home insurance and an increasing number are finding it extremely expensive to insure their property or they’re being denied coverage. Those that are considering the purchase of a home or have been denied insurance for an existing home need to examine factors they may never have considered before.

Living on the ocean with a picturesque view or enjoying the privacy of a wooded retreat may sound idyllic, but either location may qualify as high risk. Even living near certain areas such as rivers and inland lakes can be a problem when obtaining home insurance since the cost of replacing the home and valuables may present too great a monetary risk for the insurer.

People living in flood plains, hurricane zones, tornado alley, and wildfire risk areas are discovering that they can’t insure their properties or renew their policies. Companies are refusing to insure properties in geographic areas where earthquakes, violent weather, and uncontrollable fires are decimating entire communities.

Homeowners that live in areas that are at a high-risk of experiencing a natural disaster are turning to Fair Access to Insurance Requirements (FAIR) plans. The insurance option represents a plan of last resort for homeowners. To be eligible, individuals must have been denied by several private insurance companies.

In addition to natural disaster areas, individuals may be denied insurance if they’re in a high crime area. Factored in will be if multiple claims have been filed in the past and insurers have that information in a database called CLUE. In some instances, insurance may be denied not for a geographically risky area, but the individual themselves if they’ve filed multiple claims on different properties.

The good news is that there are insurance companies that are still willing to insure properties in high risk areas and there are actions that homeowners can take to make their properties more insurable, such as elevating foundations and creating a vegetation free perimeter. The best course of action is to meet with an agent to ascertain available options and to check with neighbors to discover which agency is insuring them.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

We can be found on Social Media at the following links.

The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487