15 Types of Homes Insurance Companies Refuse To Cover

These homes tend to be too risky for the average homeowners policy.

Family looking at house
Updated June 6, 2024
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Home insurance offers a crucial way to protect your home. Yet, there are homes that some carriers simply will not cover, putting owners at risk should something happen to their property.

Before you buy a home, lower your financial stress by making sure you can get insurance for it — both before and after you purchase it. Here are some things that might make your home uninsurable.

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Vacant or unoccupied properties

Andriy Blokhin/Adobe Empty room

When you buy a home insurance policy, your insurer likely will expect you to be in the home within 30 days. 

Once you are living there, make sure you don’t leave the home unoccupied for long periods, typically 60 days or more. If you leave your home vacant then you might need to prepare yourself financially for the unexpected.

Vacant properties are at much higher risk of damage from theft and break-ins, as well as flooding from burst pipes. If you expect to be away from your home for an extended time, contact your insurer and ask what you need to do to make sure your policy remains in force.

Homes in hurricane-prone areas

digidreamgrafix/Adobe Rainfall on roof

If you live along the Gulf Coast or the Eastern Seaboard, you might have trouble obtaining homeowners insurance that protects against wind and all aspects of hurricane damage.

Beachfront homes like these tend to be at high risk for damage, even if you protect your home with hurricane-proof components.

Consider investing in flood insurance to cover hurricane-related flood damage, or you may have to purchase a separate and higher hurricane insurance deductible

Homes with outdated plumbing and electrical systems

tka4/Adobe Old water pipe

It’s easy to see why insurance companies would be hesitant about covering these homes. 

Outdated plumbing and electrical systems make homes more likely to suffer substantial damage from flooding, drain backups, and electrical system failures and fires.

If a home is old and hasn’t had the electrical system or plumbing updated, that is a concern for insurers.

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Properties used for day care

famveldman/Adobe Child playing with blocks on floor

Do you plan to open a daycare in your basement to earn extra money? That decision could impact your homeowner's insurance coverage.

Insurance companies may require you to purchase a business insurance policy to cover your new business activity, or home day care insurance might be an option as add-on coverage to your policy.

Vacation and second homes

Iriana Shiyan/Adobe Outdoor porch on cabin

Many insurance companies are less willing to cover second homes, vacation homes, or weekend getaways in the woods.

Such homes are less likely to be protected and more likely to suffer damage from break-ins or leaks when no one is there.

Homes with significant structural damage

Bowonpat/Adobe White paint peeling off from roof

A home with foundation issues or a roof that is falling apart will raise red flags with insurers.

Those and other structural components will make insurance companies take a second look to limit coverage for risks.

Homes in a flood zone

Jürgen Fälchle/Adobe Man wearing boots inside flooded house

Certain areas of the country are designated as flood zones and are more likely to suffer damage from rising waters.

Don’t expect your homeowner's insurance to protect you from flood damage. You will need to purchase a separate flood insurance policy to get that type of coverage.

Homes with a noted claim history

kamiphotos/Adobe Mortgage advisor explaining policies to client

It’s not your fault if the people who owned the home before you filed one claim after another with their insurance company. However, that history could make it harder for you to obtain coverage now.

A significant claim history causes insurance companies to assume more claims will arrive in the future, and that may cause them to raise or limit coverage for you.

Properties with wood-burning stoves

MVProductions/Adobe Woman warming hands besides burning stove

A safe fireplace in good condition is one thing, but a wood-burning stove is a different ballgame for most insurance companies.

The risk of a fire occurring is much higher, and that means a bigger risk of claims for companies. Insurance companies might have different requirements to insure a home with a wood-burning stove.

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Homes with aggressive animals

Vince Scherer/Adobe Dog barking

If your home houses a dog breed that’s considered aggressive, that may mean you’ll pay more for insurance or even be denied coverage. 

Dogs such as pit bulls often mean bigger insurance bills, even if your particular pooch hasn’t done anything wrong.

Homes with unstable outbuildings

James/Adobe Rustic barn

Does the property you own have a barn that’s nearly falling over? Or perhaps there’s a workshop that is used for welding or another dangerous activity.

While outbuildings fall under your standard homeowner's insurance, instability is a worrisome factor for most insurance companies because the risk of injuries and liability claims is so high.

Pro tip: It's important to verify your coverage when you sign up so that you can eliminate the money stress of not being covered later. 

Homes owned by those who have a history of nonpayment

Aaron/Adobe An overdue bill

Homeowners who have a history of not paying their insurance premiums may find it difficult to get insurance.

Often, insurers look to the past as an indication of what’s likely to happen in the future. Nonpayment isn’t something they want to deal with on an ongoing basis.

Properties that have attractive nuisances

Finmiki/Adobe A hot tub

What is an attractive nuisance? It’s anything that puts your home at risk for liability claims, such as a hot tub, pool, sauna, trampoline, pond, or other feature where people want to gather.

A home with a treehouse is alluring to neighborhood kids who may climb it and fall, for example, and coverage may depend on your insurer and policy.

Older homes with limited updates

Gina/Adobe An outdated kitchen

Let’s say your 150-year-old home suffers a fire and needs significant repairs. The repairs will need to bring the home up to code, and insurance companies want no part of that.

Older homes also are more likely to have hidden problems with things like the plumbing and electrical systems.

Properties in remote areas or the forest

O.B./Adobe Home in the mountains

The further the home is away from fire and safety help, the harder it is to insure it. Finding ways to pay your rent is hard enough without worrying about whether the location of your home is insurable or not. 

The home needs to be easily accessible, so an off-the-grid home poses a higher risk to insurers, so you will likely need a separate policy for it.

Bottom line

littlewolf1989/Adobe Happy family posing outside new home

Before you buy a home, make sure you avoid foolish mistakes with your money by ensuring that a home insurance company will cover it.

If the home has structural issues, sits on a wooded lot, or has a barn that’s toppling over, talk to your insurance company about savings options if you repair or remove those threats. 

That could save you money and get your home insured properly.

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Author Details

Sandy Baker

Sandy Baker is a has over 17 years of experience in the financial sector. Her experience includes website content, blogs, and social media. She’s worked with companies such as Realtor.com, Bankrate, TransUnion, Equifax, and Consumer Affairs.