Home is where your heart is but this is not the only factor that makes a home the most valuable asset of your life. For most people, instead of having thousands of dollars in savings and other investments, the home is the most valuable financial asset. Therefore, it makes complete sense to do everything required to protect the house.
The majority of people rely on home insurance to keep their houses safe.You might have started thinking so many people have home insurance because it is a legal obligation, but that is not the case. Home insurance gives a sense of security to homeowners, and that’s why they opt for it.
So, if you are a homeowner and have decided to purchase home insurance, you are on the right track. This blog post will look at the different eligibility criteria for home insurance and the conditions where high-risk home insurance companies in Ontario can deny your application.
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When Can Your Home Insurance Be Denied?
Low Insurance Score
The insurance company first analyzes the risk associated with a client by looking at their loan insurance score. Like the credit score, the loan insurance score is based on your credit history, and it gives an idea to the insurance company about how likely you are to file claims. If you have a low insurance score, get ready for your home insurance application to be rejected by several companies.
The primary practice of analyzing the credit history of a client is wholly based on actuarial studies. This type of study shows whether the way a person manages his finances is a reliable means of predicting insurance claims or not.
Criminal Convictions
An insurance company must analyze whether a client is trustworthy or not because the insurance companies are not here to do charity, they are here to make profits. If you have any criminal record in the past, this will be seen as a threat to the client’s trustworthiness by high-risk home insurance companies in Ontario.
This becomes more serious when your crime was related to arson, misusing any type of property for an illegal purpose, or any property destruction.
Lapsed Coverage
If you had a home insurance policy in the past and let it lapse, this can hurt your chances of getting a new home insurance policy. In most cases, the policy lapses because you forgot to pay your premium on time or forgot to update your policy.
If you try to buy premiums from the same insurance company where your policy lapsed, your application will be denied or have your premiums raised.
History Of Claims
Insurance companies must analyze whether a client’s policy will cost them more or less than average. Policyholders with fewer claims are considered as golden customers since they bring profit. So, your history of claims will also play a crucial role in deciding whether your claims will be rejected or accepted.
It’s crucial to note that it is not only the number of claims but also the type of claims you have made that can affect your insurance application.
If you are a proud homeowner, you must have a home insurance policy from one of the best insurance companies like My Insurance Broker.To get a good home insurance policy, you must consider these points so that any insurance company won’t reject your home insurance application.