Navigating Insurance Challenges: What to Do When No One Will Insure Your Home

Imagine finding your dream home — the perfect location, just the right price — only to discover no one will insure it.

It’s a reality that’s becoming increasingly common in California and other high-risk regions across the United States. Between wildfire exposure, aging properties, and market contraction, more homeowners are discovering that traditional insurers simply won’t write them a policy.

In this Insurance Hour episode, host Karl Susman tackled one of the toughest questions a homeowner can face:

“What do I do when I can’t get insurance for the house I want to buy?”

Susman’s answer was both candid and cautionary — part reality check, part roadmap. Because when insurers refuse to write coverage, it’s not just bad luck. It’s a signal.

Step One: Pause and Ask “Why?”

Susman’s first piece of advice was simple: don’t rush to find coverage at any cost — start by understanding why you can’t.

“If you’re looking to buy a house somewhere and no one wants to insure it, you need to ask yourself why,” he said.

Insurance companies exist to sell policies. They want customers. If they’re refusing to insure a specific property, there’s a reason — and it’s usually not arbitrary.

Possible reasons include:

Location Risk: The home sits in a wildfire, flood, or earthquake-prone area.
Property Condition: The roof is too old, the electrical system outdated, or the structure hasn’t been maintained.
Market Limitations: Even well-maintained homes can be caught in broader carrier restrictions if insurers have reached their capacity limits for a given region.

Susman emphasized that the issue might not always be the property itself. Sometimes the market is the problem.

“There are situations right now where the insurance market is so tight in certain states that it’s not necessarily that the location is bad,” he said. “It might just be that insurance carriers have reached their maximum capacity for that period of time.”

In other words, even the safest homes can be left uninsured when carriers temporarily pause new business to stabilize their portfolios.

Step Two: Talk to an Independent Broker

If you’re struggling to find coverage, your next call should be to a licensed independent insurance broker.

“One of the advantages of working with an independent broker,” Susman explained, “is that you can ask them what the insurance companies are saying. They’ll tell you why carriers are declining your property.”

Unlike captive agents who represent one insurer, independent brokers can approach multiple companies — and more importantly, they see the feedback those companies give.

That feedback is invaluable. If insurers are rejecting a property due to its age, condition, or proximity to certain risks, those specifics can help you decide whether the home is worth pursuing — or whether repairs or upgrades could make it insurable.

“If multiple carriers are saying no, there’s definitely something you should be aware of,” Susman warned.

Step Three: Understand Surplus and “Non-Admitted” Markets

When traditional (“admitted”) insurance companies won’t write your policy, your broker might suggest turning to the surplus lines or non-admitted market.

These insurers are not licensed in your state but are legally permitted to operate under special rules. They provide flexibility in underwriting and pricing — and often become the last resort for high-risk properties.

Susman clarified that “non-admitted” doesn’t mean “bad.”

“All that means is they’re not licensed in that particular state,” he said. “It gives them a little more flexibility in how they price their products and what type of risks they’ll take on.”

That flexibility, however, comes with trade-offs.

Pros:

More willing to insure high-risk homes.
Faster underwriting process.
Coverage tailored to unique situations.

Cons:

Not backed by the state’s guarantee fund (if the company fails, there’s no state safety net).
Fewer consumer protections.
Pricing can fluctuate dramatically.

Most states require buyers to sign a disclosure form acknowledging that their policy is with a non-admitted carrier. This ensures consumers understand the regulatory differences and potential risks.

“It sounds scary, and it is,” Susman admitted. “But it doesn’t mean the carrier must be garbage. It just means you need to do a little more due diligence to make sure it’s the right one for you.”

Step Four: Revisit the Property Itself

If multiple insurers are declining to write a policy, that’s your cue to look closely at the home.

“Maybe it’s the condition of the house. Maybe it’s the age of the roof,” Susman suggested. “Maybe it’s the location. Find out what the reasons are.”

He gave a practical example:

“If the roof is 40 years old, even if it looks fine, the carrier might still reject it. They just don’t want to deal with it. Maybe you don’t either.”

The good news? Some issues are fixable.

Replacing a roof.
Updating wiring or plumbing.
Clearing defensible space in wildfire areas.

These improvements can transform an uninsurable property into one eligible for coverage — and may even attract multiple competing carriers once the work is done.

Step Five: Know the Red Flags

If no one — not even surplus carriers — will insure a home, that’s a major warning sign.

At that point, Susman urged buyers to reconsider the purchase entirely.

“If a carrier doesn’t want to insure it, maybe you don’t want it,” he said plainly. “There’s a reason the big brands don’t want that location or that house.”

This might feel like harsh advice, especially in tight housing markets where opportunities are scarce. But ignoring the signal can lead to years of stress — skyrocketing premiums, non-renewals, or even total loss without adequate protection.

Step Six: Understand the Bigger Picture — State Regulation

Susman tied the discussion back to a historical framework that continues to shape modern insurance availability: the McCarran-Ferguson Act of 1945.

This law confirmed that insurance is regulated by individual states, not the federal government.

“Every state has its own Department of Insurance, its own rules, and its own guidelines,” Susman explained. “Each one decides how insurance companies can operate within their borders.”

That means what’s possible in one state may not be possible in another. Some states maintain stricter consumer protections but slower rate approvals, discouraging insurers from expanding. Others prioritize flexibility and competition, sometimes at the cost of oversight.

The result? A fragmented national market where insurance availability can vary block by block.

Step Seven: Do Your Homework Before You Buy

Before you fall in love with a home, check whether it’s in an insurance dead zone.

Here’s how:

Ask the Seller or Realtor: Has anyone had trouble getting coverage in the area?
Talk to Local Brokers: They’ll know which ZIP codes are flagged by carriers as “restricted.”
Research Disaster Maps: Tools like CAL FIRE’s Fire Hazard Severity Zones or FEMA’s Flood Map Service Center can show you risk levels.
Get Pre-Underwritten: Some brokers can pre-screen a property with insurers before you make an offer.

“You’d be surprised how much you can learn just by asking,” Susman said. “Find out before you buy, not after.”

Step Eight: Know Your Options in California

For Californians, there are two key fallback options when standard and surplus markets are out of reach:

The California FAIR Plan – A last-resort fire insurance program for homeowners who can’t get private coverage.
Difference-in-Conditions (DIC) Policy – Purchased separately to fill in gaps left by FAIR Plan coverage (for perils like theft, liability, or water damage).

While these can provide short-term relief, Susman cautioned that they’re not ideal long-term solutions.

“The FAIR Plan was never meant to be a permanent fix,” he explained. “It’s supposed to be temporary coverage until the regular market stabilizes.”

Step Nine: Think Long-Term

Even if you find coverage, it’s important to understand that market conditions are constantly shifting. What’s uninsurable today might be insurable next year — and vice versa.

Regularly review your policy, stay in touch with your broker, and monitor state-level reforms that may open new doors.

California’s ongoing insurance overhaul, for instance, may soon allow carriers to re-enter withdrawn markets by using forward-looking risk models and faster rate approvals.

“It’s about patience and preparation,” Susman noted. “The market always cycles — it won’t stay this way forever.”

Step Ten: Protect Yourself Before You Commit

Buying a home without insurance is a gamble — and in many cases, an impossible one. Mortgage lenders require proof of coverage before closing.

If you’re purchasing with cash, you could technically skip insurance — but Susman strongly advises against it.

“That’s your financial safety net,” he said. “Without it, one fire, one flood, one disaster — and you lose everything.”

If you absolutely must move forward, work with your broker to secure temporary or partial coverage, even if it’s expensive. Then, make a plan to improve the property and transition to a better policy later.

Final Thoughts: Risk Isn’t Always Reward

The modern insurance market reflects the new reality of living in high-risk environments — and for homeowners, it’s forcing tough conversations about where and how we build.

If multiple insurers are saying “no,” take that as more than a financial hurdle. It’s a risk indicator — a reflection of environmental vulnerability, aging infrastructure, or systemic market stress.

“Insurance companies have some of the smartest people in the world analyzing data,” Susman reminded listeners. “If they’re saying they don’t want a piece of that risk, maybe you shouldn’t either.”

For now, the best advice remains clear:

Work with a qualified independent broker.
Do your due diligence before you buy.
Understand the market, the rules, and the reasons behind insurer decisions.

Because in today’s environment, being insurable isn’t just a checkbox — it’s part of being financially safe.

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