Can They Deny Homeowner's Insurance if I Have a Felony Record?

Because insurance is regulated on the state level, each state has its own laws regarding homeowner's insurance. However, in some states, including Michigan, you can be denied a homeowner's insurance policy because you have certain felony convictions, according to the Michigan Office of Financial and Insurance Regulation. If you already have homeowner's insurance, most state laws forbid insurance companies from canceling your policy except in a few specific cases, such as if you lied about your felony conviction on your application, commit a crime that puts your home in danger or don't make your payments. When the term is up, the company can refuse to renew your policy for any reason, including felony conviction.

Insurance companies are less likely to offer insurance if they believe your home is at risk of damage. If you were convicted of a felony that might put your home at risk, such as arson or the use of explosives, an insurance company may deny your application, according to Michigan's Office of Financial and Insurance Regulation. The office also notes that the insurance company might deny your policy if the property you are hoping to insure is used for "illegal purposes."

If you have been incarcerated, your credit score has probably been affected because you were unable to establish a credit history or make payments. Homeowner's insurance companies may deny your application or raise your rate if your credit score is low.

Homeowner's insurance laws differ from state to state, and policies vary widely from company to company. If the first few applications you submit are denied, meet with an insurance agent. She can help you understand why you were denied and help you find a company willing to extend coverage.