denied coverage on purchased home due to size of payout on a previous policy Celeste O\'Neill asked 10 months ago
denied coverage on purchased home due to size of payout on a previous policy


We chose not to rebuild after our house was completely destroyed in the Marshall Fire and relocated to Maryland. I am in the process of trying to find homeowners insurance on a home in Maryland that we are under contract to buy. I have begun searching for a quality policy and hoped to get insurance through NJM insurance group. I was told that due to the large payout on a previous policy, I was refused coverage. I explained that the loss was not my fault as it was caused by a wildfire. The agent apologized and simply said that due to the large payout, NJM was not able to write me a policy. This does not seem fair and I fear that I will receive more denials for coverage. Do you have any advice or suggestions of how to get home owner’s insurance if I am repeatedly denied coverage due to a total loss on a previous policy?

2 Answers
Katie Goodrich Katie Goodrich Expert answered 10 months ago

Hi Celeste,

I’m sorry to hear that you’re facing difficulties getting insurance on your new home in Maryland. The Colorado Division of Insurance is interested in hearing about these types of issues, so I’d recommend initiating a complaint online with them at this link: You should also contact the Maryland Insurance Administration and initiate a complaint with them. I’d also recommend appealing the denial in a letter detailing the circumstances of your claim.

I’m not sure whether the Divisions of Insurance will be able to resolve this issue for you in a timely fashion, so you may want to look into working with a licensed insurance broker and/or an insurance coverage attorney licensed in Maryland. The state of Maryland may limit an insurance company’s ability to refuse to issue a policy. I’m not familiar with Maryland law, so I’d recommend reaching out to someone local there.

I wish you all the best!

Katie Goodrich

Answer for denied coverage on purchased home due to size of payout on a previous policy Carolyn Winter answered 10 months ago

Hi Celeste,

United Policyholders lists a directory of consumer-oriented credentialed professionals on our website who support our mission and have experience in insurance law. To find them, visit our Find Help Directory, select your state (Maryland), and then choose "attorney, legal help" from the dropdown menu.

Please also read our tips on Hiring Professional Help and Hiring an Attorney for an Insurance Claim.

Before hiring any professional, it’s important that you understand how fees and costs will be handled, and speak with at least one prior client reference.

Please note that UP strives to help consumers who are seeking qualified and reliable professional help, but we cannot warrant the work or services of professionals, even if they are listed in our Find Help directory or serving as volunteers with our organization. We encourage you to check references and thoroughly vet before hiring.