What Are My Alternatives If Denied Insurance?
Insurance is your financial safety net when things go wrong. If you apply for any type of insurance, it is because you recognize your need of it, regardless of how you feel about paying premiums. Therefore, if your insurer denies you coverage for any reason, you want to know how to obtain coverage somewhere as soon as possible. Many states have assigned-risk pools, or insurers of last resort, for homeowners, drivers and even health insurance customers who cannot obtain insurance on the private market.-
Health Insurance
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As of October, 2010, several states offer a health insurer of last resort. Private health insurance companies are permitted in many states to deny coverage to applicants for a number of reasons including pre-existing conditions and overall health status. In states like Illinois, which has the Illinois Comprehensive Health Insurance Plan, you can apply for coverage to the state's assigned-risk pool. In these pools, you cannot be denied coverage based on your past or current health status.
Homeowner's Insurance
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Homeowners can also have their insurance applications denied for a number of reasons, including age or condition of the home or geographical location. Since homeowner's insurance is often required by mortgage lenders, you can face real problems if you cannot secure coverage for your home. Most states also have assigned-risk pools for homeowner's insurance, such as California's Fair Access to Insurance Requirements Plan. Policies offered through the FAIR Plan are much more basic than standard homeowner's insurance, and the premiums can be much higher, but they provide coverage when you cannot obtain it elsewhere.
Auto Insurance
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If you have a bad driving record, you may be unable to obtain insurance from private auto insurers. In some states, you are required to maintain continuous auto insurance after major moving violations such as DUIs even if your license is suspended. For any instance when private auto insurance is not an option for you, check into your state's auto assigned-risk pool. These pools will charge you the highest rates on the market for the smallest amount of coverage in most cases, but they keep you legally driving when nothing else can.
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