Last updated: July 27, 2026
Bottom Line
If your homeowners insurance bill is too high, act before the policy ends. Call the insurer, ask for the exact amount and deadline needed to keep coverage, and request every available discount or payment option. Then shop for the same level of coverage through other licensed insurers or an independent agent.
If you have a mortgage, also call your loan servicer. A lapse can lead to costly lender-placed insurance that may protect the lender more than it protects you. If you cannot find regular coverage, contact your state insurance department and ask about a FAIR Plan, Citizens plan, beach or wind plan, or another insurer of last resort.
There is no broad federal program that pays every homeowner’s yearly insurance premium. One limited option remains in 2026: some state or tribal Homeowner Assistance Fund programs may still cover homeowners insurance for eligible households. Funds are limited, and the federal program is scheduled to end in September 2026 or when local funds are used up.
A premium increase may arrive as a larger yearly bill, a cancellation or nonrenewal notice, or a jump in the escrow part of your mortgage payment. The right response may be a lower quote, an escrow correction, a repair, a state last-resort policy, or short-term housing help. These are not all grants, and none is guaranteed.
This national guide explains the main steps. Because insurance rules, notice periods, discounts, and complaint rights are set mainly by state law, your state insurance department is a key contact.
| Your problem | Best first call | What the help is | Main limit |
|---|---|---|---|
| Premium is due soon | Current insurer or agent | Payment arrangement, discount review, or policy change | Not a grant; the insurer may say no |
| Mortgage payment jumped | Mortgage servicer | Escrow review or error correction | A real premium increase still must be paid |
| Coverage was cancelled or not renewed | State insurance department | Consumer help, complaint review, and last-resort plan information | The regulator does not promise a cheap policy |
| COVID-related hardship | State or tribal HAF program | Limited government housing-cost assistance | Many programs are closed or nearly out of funds |
| Roof, wiring, plumbing, or other condition blocks coverage | Local repair program or USDA | Grant, loan, deferred loan, forgivable loan, or repair service | May not pay the premium and may require insurance |
| You cannot manage the process alone | HUD-approved housing counselor | Housing counseling and action planning | Counselors do not control insurer decisions |
What to Do Before the Policy Lapses
Do not wait until the last day. A policy that ends can be hard or expensive to replace, especially after a storm, wildfire, claim, inspection problem, or insurer withdrawal.
- Read the full notice. Find the due date, cancellation or nonrenewal date, reason, amount, and phone number.
- Call the insurer today. Ask what amount will prevent a lapse and whether it can reinstate coverage, split the bill, fix an error, or apply missing discounts.
- Get the reason in writing. It may involve claims, roof age, wiring, wildfire exposure, vacancy, missed payment, inspection issues, or the company leaving an area.
- Call the mortgage servicer. Confirm whether insurance is escrowed, the bill was paid, and the servicer has proof of coverage.
- Start shopping. Compare the same dwelling limit, deductibles, roof terms, major exclusions, liability limit, and replacement-cost terms.
The NAIC homeowners guide explains that most mortgage lenders require coverage. It also warns that lender-purchased coverage may cost more and may cover only the structure or lender’s interest.
Do not cancel your old policy before the new one is active. Get the new policy number, effective date, declarations page, and written confirmation first. A quote is not coverage.
Safer Ways to Lower the Insurance Cost
Prices can vary widely. Shopping is often the strongest first step, but the cheapest quote may not be the safest policy.
Shop the same coverage
Ask at least three licensed insurers or an independent agent for written quotes using the same facts and limits. The NAIC shopping tips recommend comparing price, coverage, deductibles, and discounts.
Check whether roof and building losses use replacement cost or actual cash value. Actual cash value subtracts depreciation and may leave a much smaller payment. Also check separate limits or deductibles for wind, hail, wildfire, water backup, and personal property.
Raise the deductible only if you can pay it
A higher deductible may lower the premium, but you pay more after a covered loss. Some wind, hail, hurricane, or wildfire deductibles are percentages. A 2% deductible on $300,000 of dwelling coverage is $6,000. Choose only an amount you could actually pay.
Ask for every real discount
Ask about bundling, protective devices, a newer roof, fortified construction, wildfire work, claim-free history, paperless billing, and automatic payments. Before paying for an upgrade, get written confirmation that it qualifies, what proof is needed, and the expected discount.
Remove extras carefully
You may reduce optional endorsements or personal property limits, but understand the loss. Do not cut dwelling coverage below rebuilding cost or the lender’s requirement. Standard policies also usually exclude flood and earthquake. Dropping separate flood, earthquake, wind, or fire coverage may create a serious gap or violate the loan.
If the Increase Came Through Your Mortgage Escrow
With escrow, part of each mortgage payment is saved and the servicer pays the insurance bill. A payment can rise because the next premium is higher and because the servicer is collecting a prior escrow shortage.
The CFPB payment guide says homeowners should check the itemized mortgage statement and contact the servicer when the reason is unclear. Ask for the annual escrow analysis and compare it with the insurer’s renewal bill.
Questions to ask the servicer
- What premium did you use for the new calculation?
- How much is for future insurance, and how much is a shortage?
- Was the insurer paid on time?
- Can the shortage be spread out?
- Where should I send a new declarations page?
If the servicer failed to pay from escrow, paid the wrong company, used the wrong premium, or added charges after you already had coverage, use the CFPB escrow steps. Call first, keep notes, and send a written notice of error to the special address shown on your mortgage statement or servicer website.
Know the force-placed insurance rules
If the servicer believes your coverage ended or is too low, it may buy force-placed insurance and charge you. This policy is usually expensive and may protect mainly the lender.
Under the current federal force-placed insurance rule, a servicer generally must send a notice at least 45 days before charging you and a reminder at least 15 days before charging you. After the servicer receives acceptable proof that your own required coverage is active, it generally must cancel force-placed coverage within 15 days and remove or refund charges for overlapping coverage.
Send the declarations page, policy number, effective dates, property address, and mortgagee information through the servicer’s named channel. Keep proof of delivery.
Tip: If you already had coverage, do not just pay the force-placed charge and assume it will fix itself. Follow the CFPB correction steps and dispute any error in writing.
Programs and Services That May Help
Most help is not a permanent premium subsidy. It may be short-term housing aid, counseling, a referral, a state insurance policy, or repair help.
Homeowner Assistance Fund
The Homeowner Assistance Fund, or HAF, is the main current federal funding path that may include homeowners insurance. States, territories, and tribal entities run the programs.
As of July 2026, the CFPB HAF page says the program is scheduled to end in September 2026 or when funds are exhausted, whichever comes first. Some programs are already closed. Others may still accept applications or waitlist names.
HAF is limited to homeowners who had a financial hardship connected to the COVID-19 pandemic. The home must be the primary residence. Most state programs use an income limit below 150% of area median income or $79,900, whichever is higher, but a program may use a lower limit or add other rules.
Local programs may cover mortgage payments, taxes, homeowners insurance, association fees, utilities, or certain repairs. Not every program covers insurance. Use the Treasury HAF directory to find the official program.
2026 funding warning: Apply only through the official state, territory, or tribal program. HAF money is limited and is in closeout. An old application page does not prove that funds remain.
HUD-approved housing counseling
A counselor can review escrow, prepare you for servicer calls, explain foreclosure risk, and organize a plan. Counseling is a service, not cash, and cannot force an insurer to lower a rate.
Use HUD housing counseling or call 1-800-569-4287. Ask whether the agency handles mortgage delinquency, escrow, post-purchase budgeting, home repair, or disaster counseling.
211 and local emergency help
Call 211 or use 211 housing help for mortgage aid, community action, legal aid, senior or veteran services, disaster help, and repair programs. It is a referral service, not an insurance grant. Charity help is usually small and temporary.
State insurance department
Your state insurance department can explain state notice rules, check whether an insurer or agent is licensed, accept complaints, and tell you whether a FAIR Plan or another residual-market program exists. This is a consumer service, not premium assistance.
Contact the department quickly if you believe the cancellation or nonrenewal notice is wrong, the reason is unclear, the insurer did not apply a required discount, or an agent is giving conflicting information.
When the Home’s Condition Is Causing the Insurance Problem
An insurer may require repairs for an old roof, unsafe wiring, leaks, a damaged porch, a wood stove, overhanging trees, nearby brush, vacancy, or unrepaired claim damage.
Ask for the exact conditions, deadline, and acceptable proof in writing. The company may want invoices, permits, photos, an inspection, or roof certification. Also ask whether it will reinspect or reconsider after the work; a repair does not guarantee coverage.
Repair help that may fit
- City or county rehabilitation: Help may be a grant, deferred loan, forgivable loan, low-interest loan, or contractor-paid repair. Start with the guide to finding local programs.
- USDA Section 504: This loan-and-grant program serves eligible very-low-income rural owner-occupants. Loans may reach $40,000 at 1% for 20 years. Grants may reach $10,000, or $15,000 for eligible disaster-damaged homes, for qualifying owners age 62 or older who cannot repay a loan and need health or safety work. A grant may be repaid if the home is sold within three years. Applications are ongoing, but approval depends on local funding. Check the USDA repair program.
- Weatherization: This is an energy and safety service, not a general repair grant. It may provide insulation, air sealing, or limited heating and safety work after an assessment. Apply through the state weatherization office.
- Nonprofit repair: Volunteer groups may handle small safety repairs, ramps, minor roof work, or accessibility changes. Service areas and waitlists are local.
A repair program may require insurance before approval. If you have none, say so on the first call and ask whether it accepts a last-resort policy, binder, conditional approval, or proof that you are seeking coverage.
Use the home repair help guide, roof repair assistance, or manufactured-home repair programs. Manufactured homes may face extra title, land, age, and park rules.
Do not start work too early. Many repair programs will not pay for work started before inspection and written approval. Review the repair application steps before signing a contract.
If No Regular Insurer Will Cover the Home
After denials, ask a licensed independent agent to check several admitted insurers and lawful specialty markets in your state.
Then call the state insurance department and ask these questions:
- Does the state have a FAIR, Citizens, beach, wind, or other last-resort plan?
- Do I need private-insurer rejection letters or repairs first?
- What losses and property types does the plan cover?
- Will I need a second policy to fill gaps?
- Is the agent or broker licensed?
A last-resort plan is an insurance policy, not a grant or promise of a low price. Coverage may be narrower, deductibles higher, and continued private-market shopping required.
If you believe the insurer broke state law or used wrong information, file a complaint through the NAIC regulator directory. Include the notice, policy, billing history, photos, inspection report, agent messages, and a short timeline.
If a servicing error, unlawful cancellation, foreclosure risk, or disputed charge threatens the home, a low-income homeowner may also seek civil legal help through Legal Services Corporation.
Documents to Gather
Keep paper and digital copies, named by date and subject.
| Document | Why it matters |
|---|---|
| Renewal, cancellation, or nonrenewal notice | Shows the reason, deadline, and required action |
| Current declarations page | Shows limits, deductibles, mortgagee, discounts, and policy dates |
| Premium invoice and payment history | Helps prove what was billed and paid |
| Mortgage statements and escrow analysis | Shows whether the increase is premium, shortage, or another charge |
| Quotes from other insurers | Helps compare price and coverage |
| Inspection or repair notice | Shows the conditions blocking coverage |
| Photos, permits, invoices, and contractor proof | May show that required work was completed |
| Income and hardship proof | May be needed for HAF or repair assistance |
| Call log | Records names, dates, promises, and reference numbers |
For repair help, use the repair document checklist. Do not send original identity or ownership records unless an official program explains why and how they will be protected and returned.
Phone Scripts You Can Use
Call the insurer
“My homeowners insurance is becoming unaffordable, and I want to prevent a lapse. What exact amount and date will keep the policy active? Please review every discount, deductible option, payment plan, and coverage change. Tell me in writing what I would lose before changing the policy.”
Call the mortgage servicer
“My mortgage payment increased because of homeowners insurance. Please explain how much is the new premium and how much is an escrow shortage. Did you pay the insurer on time? Please send me the escrow analysis and tell me where to send proof of any replacement policy.”
Call the state regulator
“I received a cancellation or nonrenewal notice and cannot find affordable replacement coverage. Can you explain my state rights, check whether the company and agent are licensed, and tell me whether my state has a FAIR Plan or other last-resort property insurance option?”
Call a repair program
“My insurer says the home needs repair to keep or obtain coverage. I own and live in the home. Do you have owner-occupied repair, emergency repair, weatherization, or rural repair help for this condition? Is the help a grant, loan, deferred loan, forgivable loan, or service? Must I have insurance before approval?”
Common Mistakes
- Waiting until the cancellation date to start shopping.
- Comparing only the premium and not the deductible or exclusions.
- Choosing a deductible that cannot be paid after a loss.
- Assuming a mortgage escrow increase is automatically correct.
- Ignoring a request for proof of insurance from the servicer.
- Cancelling the old policy before the new policy is active.
- Starting repairs before a grant or loan program gives written approval.
- Calling a FAIR Plan a free government insurance program.
- Assuming HAF is open because an old webpage still exists.
Insurance and Financing Scam Warnings
- Do not pay a fee to “unlock” a government homeowners insurance grant.
- Do not give bank logins, card numbers, or a Social Security number to an unsolicited caller.
- Do not sign a blank insurance application or allow false answers about the roof, occupancy, claims, pets, heating, or property condition.
- Do not let a contractor promise a guaranteed insurance discount without written confirmation from the insurer.
- Do not replace an unaffordable premium with a high-cost loan secured by the home unless you understand the payment, interest, lien, fees, and foreclosure risk.
Before borrowing for repairs, read safer repair financing. If a repair program uses a lien or delayed repayment, review deferred loan rules.
Your 48-Hour Action Plan
- Today: Read the notice and call the current insurer. Get the exact deadline and amount needed to keep coverage.
- Today: Call the mortgage servicer if insurance is escrowed or the lender has sent a coverage notice.
- Today: Request three comparable quotes and ask an independent agent to search more than one company.
- Within 24 hours: Contact the state insurance department about cancellation rights and last-resort plans.
- Within 24 hours: Check the official HAF program for your state or tribe because the 2026 window is closing.
- Within 48 hours: Call HUD counseling and 211 if the premium threatens the mortgage payment or other basic bills.
- Within 48 hours: If property condition is the problem, contact local repair, USDA, or weatherization intake before starting work.
Frequently Asked Questions
Is there a government grant that pays homeowners insurance?
There is no broad federal grant that pays every homeowner’s yearly premium. Some state, territory, or tribal Homeowner Assistance Fund programs may still cover homeowners insurance for eligible households with a COVID-related financial hardship. Funds are limited, many programs are closed, and the federal program is scheduled to end in September 2026 or when funds run out.
Can my mortgage company buy insurance for me?
Yes. If your required coverage lapses or the servicer cannot verify it, the servicer may buy force-placed insurance and charge you. It is often more expensive and may protect mainly the lender. Federal rules generally require advance notices before charges are added.
Will a higher deductible lower my premium?
It may. The savings vary by insurer and state. Choose a higher deductible only after calculating the dollar amount you would have to pay after a claim. Percentage deductibles for wind, hail, hurricanes, or wildfire can be very large.
What is a FAIR Plan?
A FAIR Plan or similar state residual-market plan is insurance for some properties that cannot get regular private coverage. It is not a grant or subsidy. Coverage may be limited and the premium may still be high. Ask your state insurance department how the plan works where you live.
Can a home repair grant help me keep insurance?
Possibly. A local repair program, USDA Section 504, weatherization provider, or nonprofit may repair a roof, wiring, heating system, or other condition cited by an insurer. The help may be a grant, loan, deferred loan, forgivable loan, or service. It usually does not pay the premium, and some programs require insurance before approval.
What if my servicer failed to pay the insurance from escrow?
Call the insurer and servicer immediately. Ask whether the policy can be reinstated without a lapse. Send the servicer a written notice of error with copies of the bill, escrow statement, and cancellation notice. You may also contact the CFPB, a HUD-approved housing counselor, legal aid, and your state insurance department.
Should I drop homeowners insurance after paying off the mortgage?
You may no longer have a lender requiring it, but dropping coverage can put the full value of the home, belongings, temporary housing costs, and personal liability at risk. Before cancelling, compare lower-cost policies, higher deductibles you can afford, and any state last-resort option.
About This Guide
How we researched this page: We checked official federal, state, local, tribal, utility, and trusted nonprofit sources linked in this article. We reviewed program names, service areas, eligibility rules, application routes, contact details, and whether each option is a grant, loan, rebate, service, insurance policy, or referral.
Our role: HomeRepairGrants.org is an independent information website. We do not run these programs, accept applications, choose recipients, sell insurance, act as an insurance agent, or guarantee funding, coverage, rates, or approval.
Local changes: Insurance rules, premiums, discounts, notice periods, HAF funding, waitlists, service areas, income limits, and application periods can change. Confirm current details with the insurer, mortgage servicer, regulator, or organization that runs the program before you apply, sign papers, pay money, cancel coverage, or start repair work.
Corrections: See something outdated or incorrect? Email info@homerepairgrants.org and include the page URL and a reliable source when possible.
Disclaimer: This guide provides general information. It is not legal, financial, tax, insurance, medical, disability-rights, contractor, or government-agency advice.
Last verified: July 27, 2026 | Next review: October 27, 2026