Being refused home insurance is unsettling, usually because it arrives without much explanation. One minute you are filling in a form, the next you are staring at a blunt decline message and wondering what just happened.
Refusal does not mean a property is uninsurable. It means one insurer decided the risk did not fit their rules at that moment.
Why insurers refuse properties
Refusals usually follow patterns rather than one-off judgement calls.
- Previous subsidence, underpinning or structural movement
- Flood history or high flood-risk location
- Non-traditional or defective construction
- Unoccupied or partly unoccupied properties
- Unresolved damage or ongoing repairs
- Incorrect or incomplete information on an application
Online systems apply these rules automatically. There is rarely a person reviewing the nuance.
Refusal does not mean the house is uninsurable
Many insurers operate narrow underwriting criteria.
A refusal often reflects the insurer’s appetite rather than the property’s condition. Another insurer, using different assumptions, may assess the same information differently.
This is especially common with comparison sites.
Whether you need to declare a refusal
This is one area where wording matters.
Some insurers ask whether you have ever been refused insurance. Others ask only about cancelled or voided policies. A refusal quote is not the same as cancelled cover.
Answering the question as written matters more than guessing what the insurer might want to know.
What insurers usually ask after a refusal
Once an application moves beyond automated systems, the questions become more specific.
- Why cover was refused
- Whether circumstances have changed
- Details of any known issues
- Supporting documents or reports
Clear answers usually lead to clearer terms.
Common mistakes after being refused
A refusal often leads to rushed decisions.
- Submitting multiple applications with inconsistent details
- Leaving out information to avoid another refusal
- Guessing at rebuild values
- Using generic answers to complex questions
These actions tend to create more questions rather than fewer.
How policy terms may differ
Insurance offered after a refusal is often adjusted rather than denied.
Those adjustments are usually specific to the identified risk.
- Higher excesses for certain claims
- Exclusions linked to known issues
- Conditions requiring evidence or inspections
This reflects underwriting decisions rather than a judgement on the property itself.
Buying a property that was refused insurance before
Previous refusal does not automatically carry forward, but the reason for it often does.
If the underlying issue remains, future insurers may reach similar conclusions. If the issue has been resolved, supporting evidence usually changes the outcome.
Using accurate rebuild costs
Incorrect rebuild values trigger refusals more often than people realise.
Underestimating rebuild cost can flag a risk that the insurer cannot price properly. Overestimating can push a property outside automated limits.
Accurate figures help applications progress beyond automated screening.
What usually improves outcomes
The same factors come up repeatedly.
- Consistent information across applications
- Clear explanations of past issues
- Relevant reports or certificates
- Realistic expectations about policy terms
A refusal is a data point, not a verdict. It signals where insurers want more detail, rather than where cover stops.