high risk homeowners insurance

What Is a No Loss Statement?

A no loss statement is a letter that states you haven’t don’t have any current losses or damages that could lead to claims. You may be asked to submit a no loss statement if your policy lapsed or was canceled or if you applied for coverage during a moratorium. Your insurer will need this statement before they move forward with reinstating or issuing your policy.

When Would You Need to Sign a No Loss Statement?

There are two situations when your insurance company may ask for a no loss statement:

  1. Your policy lapsed or was canceled but is being reinstated. Rather than creating a new application, a brand new policy, and a new effective date, your insurer may ask you to confirm you haven’t experienced losses while your policy was inactive. That way the company doesn’t have to assume responsibility for damage that happened while your home wasn’t in its care.
  2. You applied for coverage right before a widespread disaster struck. If the company went into moratorium before issuing the policy, you will be asked to sign a no loss statement once it’s lifted. 

In both cases, you’re just affirming that at the time of signing, your home hasn’t experienced any damage that would trigger a claim.

Note: Not all insurance companies will reinstate a policy once it’s lapsed! Having continuous coverage is the best way to ensure your home’s safety. Plus, lapsed policies may be subject to higher rates. Think about it this way: continuous coverage proves that you take your home’s protection seriously. To insurers, that means fewer losses. 

Why Do Insurers Ask for a No Loss Statement?

It’s easier for both you and your insurance company to reinstate your existing policy. In our case, we already have all the data about your home, all the inspections we may need, and all your background information. We’d rather not waste your time or all that good underwriting work.

But anything can happen between the time your policy lapsed and when it’s reinstated. Many accidents and damages happen without any warning, and your insurance company just wants confirmation that it’s not taking responsibility for a previous loss it has no way of knowing about. 

All said, no loss statements reduce the chance of insurance fraud. If these statements didn’t exist, folks might only buy insurance right after they experience a loss. That would be unfair to the millions of homeowners who plan ahead for their home’s protection.

Example of a No Loss Statement

You can see an example of our statement of no loss form here. It displays your policy number, your home’s address, your contact information, and our contact information. It says:

I certify there have been no losses, accidents, or circumstances that may give rise to a claim under the insurance policy that occurred on or before this date.

And once you’ve signed, you’re all set.

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