What Factors Can Make Home Insurance Difficult to Obtain?

In reality, however, not every insurance company is willing to insure every type of property.

Factors such as the age of the home, its maintenance condition, previous claims history, and even the risks associated with its location may lead insurers to charge higher premiums, impose additional underwriting conditions, or decline to provide a quote altogether.

So, what factors can make a property more difficult to insure? Here are some common situations to be aware of.

1. Older Homes

Older properties generally receive closer attention from insurance companies.

This is because some older homes may still have outdated building materials or systems, such as:

• Polybutylene plumbing (Poly-B)
• Knob-and-tube wiring
• Older roofing materials
• Aging heating or water supply systems

These features may increase the risk of water damage, fire, or other types of loss.

However, an older home is not necessarily difficult to insure. If the homeowner has already upgraded major systems such as plumbing, electrical wiring, and roofing, this can help insurers assess the property’s current condition more favourably.

When insuring an older home, it is helpful to have records of major repairs and upgrades available so the insurer can better understand the property’s condition.

2. Poor Condition of the Roof and Major Systems

In addition to the age of the property, insurers also pay close attention to its current maintenance condition.

For example:

• The roof is nearing the end of its expected lifespan or has existing leaks.
• Plumbing is deteriorating and has experienced repeated leaks.
• The electrical system has not been properly updated.
• The heating system or hot water tank is very old.
• The property has noticeable structural or maintenance issues.
• The property has a wood-burning fireplace or wood stove.

Wood-burning fireplaces and wood stoves may receive particular attention because they involve an open flame and a chimney or exhaust system.

Some insurers may require professional inspection or chimney cleaning records to confirm that the installation and related systems meet their requirements. Others may decline coverage depending on the type of installation, how the appliance is used, or the overall condition of the property.

These factors may increase the risk of fire or other property damage.

Depending on the circumstances, insurers may require the homeowner to complete certain repairs before offering coverage. In some cases, they may decline the property altogether if it does not meet their underwriting requirements.

If your home has a wood-burning fireplace or wood stove, it is important to disclose this to your insurer and confirm whether there are any additional installation, inspection, or maintenance requirements.

3. Previous Claims History

A property’s previous claims history is another important factor insurers consider when assessing risk.

For example:

• Multiple water damage claims in the past.
• Previous fire damage or other major losses.
• Several home insurance claims within a relatively short period.
• Serious or recurring water leaks or other property-related issues.

Even if the necessary repairs have been completed, insurers may still consider the property’s claims history when assessing the likelihood of similar incidents happening again.

However, insurers do not all assess claims history in the same way. Some may place greater emphasis on the number of claims, while others may focus more on the type of loss, claim amount, and how much time has passed since the last claim.

Having previous claims does not necessarily mean that you cannot obtain home insurance, but it may affect the insurers available to you and the premium you are offered.

4. Higher-Risk Property Location

The location of a property can also influence an insurer’s willingness to provide coverage.

For example:

• Properties located in areas with a higher wildfire risk.
• Properties in flood-prone areas.
• Areas with limited access to fire stations or firefighting services.
• Areas that have experienced severe natural disasters.
• Properties located in areas with a higher earthquake risk.

If an area has experienced significant losses from flooding, wildfires, or other natural disasters, insurers may reassess the risks associated with providing coverage in that location.

Some insurers may increase premiums, apply higher deductibles, restrict certain coverage options, or temporarily stop accepting new policies in the area.

As a result, even if a property is well maintained, the risks associated with its location may still affect its insurability.

5. Previous Flooding or Recurring Water Damage

Water damage is one of the risks that requires particular attention when purchasing home insurance.

If a property has experienced any of the following issues in the past, it may become more difficult to insure:

• Previous basement flooding.
• Previous sewer backup incidents.
• Previous overland water damage.
• Repeated leaks involving plumbing or drainage systems.
• Major repairs resulting from water damage.

Even if the underlying issues have been repaired, insurers may still request repair records, professional inspection reports, or other supporting documentation.

In addition, some insurers may be willing to insure the property but may exclude certain types of water damage coverage or impose higher deductibles.

For condominium owners, insurers may also consider the Strata Corporation’s Water Damage Deductible when assessing the overall risk, in addition to the individual unit’s previous water damage history.

For example, if the strata’s insurance policy has a water damage deductible of $100,000 or more, some insurers may respond by applying stricter underwriting conditions, charging higher premiums, or placing lower limits on Condo Deductible Coverage.

Therefore, when purchasing home insurance, it is important to look beyond whether a quote is available and make sure the water damage coverage is appropriate for the property’s circumstances.

6. Vacant Properties

Standard home insurance is generally designed for residential properties that are occupied. When a property remains unoccupied for an extended period, different underwriting requirements may apply.

For example:

• The homeowner has moved elsewhere and the property is waiting to be sold.
• Tenants have moved out and the property remains vacant while waiting for new tenants.
• The property is undergoing major renovations and no one is living there.
• The homeowner is living overseas for an extended period and the property is left vacant.

Vacant properties may carry additional risks because there is no one regularly checking the property. Issues such as water leaks, fires, or other damage may go unnoticed for longer periods.

As a result, some insurers may not accept these properties under a standard home insurance policy. The homeowner may instead need to apply for Vacant Property Insurance.

It is also important to note that vacant property insurance may have different coverage and conditions compared with a standard home insurance policy.

7. Major Renovations

If a property is undergoing major renovations, this may also affect its eligibility for home insurance.

Examples include:

• Removing significant portions of the property’s interior structure.
• Replacing major plumbing or electrical systems.
• Large-scale additions or structural alterations.
• Leaving the property unoccupied during construction.
• Renovations involving structural modifications.

Major renovations can increase the risk of fire, water damage, and other unexpected losses.

Insurers may therefore need additional information about the scope of work, expected construction timeline, contractor details, and whether anyone will be living in the property during the renovation.

Depending on the circumstances, the homeowner may need Renovation Insurance or Course of Construction Insurance instead of relying solely on their existing home insurance policy.

8. Property Used for Purposes Other Than Standard Residential Use

Home insurance is generally designed for residential properties. If a property is used differently from a typical private residence, this may affect its eligibility for coverage.

For example:

• Renting out the entire property as an investment.
• Operating a short-term rental, such as Airbnb.
• Running a higher-risk business from home (Home-Based Business).
• Using the property for both residential and commercial purposes.
• Having multiple tenants or non-family occupants living in the property.

In particular, not every Home-Based Business is automatically covered under a standard home insurance policy.

For example, a business involving customer visits, employees working at the property, substantial commercial inventory, professional equipment, or frequent shipping and receiving activities may increase both property-related and liability risks.

Insurers have different underwriting guidelines for Home-Based Businesses. Some may accept smaller, lower-risk businesses but impose limits on business equipment, inventory, or third-party liability coverage. Others may require the homeowner to obtain separate commercial insurance, such as Commercial General Liability (CGL) coverage.

Failing to disclose the actual business activities to the insurer may result in coverage that does not properly reflect how the property is being used.

If you plan to operate a business from home, you should notify your insurer in advance. Explain the nature of the business, whether customers or employees will visit the property, and whether any commercial inventory or equipment will be stored there. This will help determine whether your existing home insurance remains suitable or whether additional commercial coverage is required.

9. Unusual Construction or Property Types

Certain properties with less common construction methods or characteristics may also have fewer insurance options available.

Examples include:

• Log homes.
• Mobile homes.
• Farm dwellings.
• Seasonal homes that are not occupied year-round.
• Homes built using unusual construction materials or non-traditional building methods.

Because these properties may have different construction features, maintenance requirements, and rebuilding costs compared with standard homes, not every insurance company offers coverage for them.

Homeowners may therefore need to approach insurers with specific experience in these types of properties.

What If Standard Insurance Companies Are Unwilling to Insure Your Property?

Not necessarily.

Different insurance companies have different underwriting guidelines and risk appetites.

A property that one insurer declines may still be acceptable to another.

If your property has certain unusual or higher-risk characteristics, you may be able to explore alternative insurance companies or other underwriting markets to find suitable coverage.

However, depending on the circumstances, you may need to:

• Provide additional information or proof of completed repairs.
• Accept a higher premium or deductible.
• Accept restrictions or limitations on certain coverage.
• Obtain coverage through a market that specializes in non-standard or higher-risk properties.

Most importantly, always disclose the property’s condition and actual use accurately when applying for insurance. Providing incomplete or inaccurate information may affect your coverage and create complications if you need to make a claim.

Final Thoughts

There are many factors that can affect a property’s eligibility for home insurance. Beyond the age and maintenance condition of the home, insurers may also consider its claims history, location-related risks, occupancy status, and actual use.

However, being declined by one insurance company does not necessarily mean that you cannot obtain coverage elsewhere.

Every insurer has its own underwriting guidelines and risk appetite. Understanding the property’s circumstances and approaching the right insurance market is often more important than simply comparing premiums.

If your property has a previous claims history, is older, or has unusual rental or usage arrangements, it is worth discussing the details with an insurance broker before applying. This can help you understand the available coverage options and any underwriting requirements that may apply.