When evaluating a property, most people focus on price, layout, and location. Insurance eligibility often comes much later—sometimes too late. In reality, certain conditions can make a home difficult or even impossible to insure, regardless of how attractive it may look on the surface. Understanding these warning signs early can save buyers, sellers, and investors from costly surprises.
Below are some of the most common factors that raise concerns with insurance carriers.
1. Aging or Failing Roof Systems
The roof is one of the first components insurers scrutinize. A roof nearing the end of its service life, showing widespread curling shingles, soft spots, active leaks, or improper repairs can trigger a denial. Insurers are especially cautious with older asphalt shingle roofs and certain discontinued materials. Even if a roof is not currently leaking, visible deterioration can still be enough to make the home uninsurable.
2. Outdated Electrical Systems
Electrical systems that no longer meet modern safety standards are a major red flag. Knob-and-tube wiring, aluminum branch wiring, undersized service panels, double-tapped breakers, and evidence of amateur modifications all increase fire risk. Insurers typically require upgrades or corrections before issuing coverage.
3. Foundation and Structural Issues
Cracks that suggest movement, sloping floors, doors that won’t close properly, or visible structural repairs can signal underlying foundation problems. While not all cracks are serious, signs of ongoing movement or unengineered modifications can make insurers hesitant due to the potential for high repair costs.
4. Plumbing Materials and Conditions
Certain plumbing materials are known for higher failure rates. Galvanized steel pipes, polybutylene piping, and deteriorated cast iron drain lines often raise insurance concerns. Active leaks, corrosion, or signs of past water damage further increase the likelihood of denial.
5. Prior Water, Fire, or Mold Damage
Homes with visible mold growth, lingering moisture issues, or evidence of unresolved fire damage are often flagged. Even if repairs were attempted, incomplete or undocumented remediation can be a deal breaker. Insurers want assurance that the issue was fully addressed and won’t reoccur.
6. Deferred Maintenance and Property Condition
Insurance companies assess overall risk, not just individual systems. Peeling paint, rotted siding, damaged windows, unsafe decks, and deteriorated exterior components suggest neglect. A pattern of deferred maintenance can indicate a higher likelihood of future claims.
7. Unpermitted Additions or Conversions
Garage conversions, room additions, or structural changes completed without permits can complicate insurance approval. Unverified work raises questions about safety, code compliance, and construction quality.
Final Thoughts
A home doesn’t need to be falling apart to be uninsurable. Often, it’s a combination of aging systems, safety concerns, and unresolved defects that create problems with coverage. Identifying these issues early allows time for repairs, negotiations, or informed decision-making before insurance becomes an obstacle.
Understanding what insurers look for helps ensure a smoother transaction—and fewer surprises after the contract is signed.