Can They Deny Homeowner's Insurance if I Have a Felony Record?

Homeowner's insurance provides financial compensation if your home is damaged or destroyed due to a natural disaster or an automobile accident. Most mortgage firms demand borrowers obtain a homeowner's insurance coverage because it is tough to overcome the financial burden of rebuilding or repairing your property out of pocket. If you have a felony conviction, getting homeowner's insurance may be more difficult, but it is still feasible.

Legislation and Regulations

Because insurance is controlled at the state level, each state has regulations governing homeowners' insurance policies. According to the Michigan Office of Financial and Insurance Regulation, you may be rejected a homeowner's insurance policy in some states, including Michigan, if you have certain criminal convictions, such as a DUI. Insurance companies are prohibited from terminating your policy if you already have it, save for a few limited circumstances, such as misrepresenting your criminal record on your application, engaging in criminal activity that endangers your house, or failing to make your insurance payments on time. When your policy's term expires, the firm has the right to refuse to renew it for any reason, including a felony conviction.

Denial As A Result Of A Felony Conviction

If insurance companies believe that your home is at risk of being damaged, they are less likely to issue you insurance. According to the Michigan Office of Financial and Insurance Regulation, if you have been convicted of a felony that could put your house at risks, such as arson or the use of explosives, an insurance provider may decline your application. According to the office's guidelines, if the property you wish to insure is being used for "illegal purposes," the insurance company may refuse to issue you a policy.

Insurance Denial Because of Poor Credit

If you have been incarcerated, your credit score has likely been negatively impacted due to your inability to create a credit history or make payments. If your credit score is low, homeowner's insurance companies may reject your application or hike your rate.

Options

Homeowner's insurance rules vary from state to state, and policies fluctuate significantly from one insurance company to another. If your first few insurance applications are rejected, you should consult with an insurance agent. She can assist you in understanding why you were denied coverage and locate a company that is willing to extend coverage.