You may pay more for homeowners insurance if you live in high-risk areas. Insurers consider many factors when determining homeowners insurance rates, including the risk of wildfires, extreme weather and previous insurance claims. Request a free quote to find out if your home is considered high-risk. You can do so online, over the phone, or even by mail. The process of getting a quote can take up to 10 minutes.
Other Options
High-risk homeowners who live in high-risk areas may wish to look into homeowner insurance with a different provider. The price and coverage of homeowners insurance policies can differ widely between insurance providers. This is why it's important to get multiple quotes from different insurance companies in order to get the best coverage and lowest price.
For homeowners with high-risk properties, many companies offer additional coverage. Amica, for example, provides protection for valuables and high value items. American Family is another option for high-risk homeowners. It offers sump pump coverage and water damage coverage.
Cost
Insurance for homeowners at high risk is more costly than standard policies. For reasons such as poor credit scores, the premium will go up. For coverage, someone with a lower credit score will be charged twice as much than someone who has a higher credit score. It also comes with a higher level of complexity than a standard insurance policy.
You can make some changes to your property to lower the cost for homeowners with high-risk insurance. For instance, by trimming branches, clearing property of dry brush, or replacing the roof, homeowners can lower their risk of fire. You can also improve your credit score.
Requirements
There are many kinds of homeowners insurance. Some of them are especially designed for high risk homeowners. To be eligible for coverage, high-risk homes must meet certain criteria. A home that is high-risk must meet certain requirements. For example, it must be more recent and have less structural problems than older homes. If the structure is not in good condition, it will be less likely that insurance companies approve your application. High-risk homeowners can also get FAIR insurance, which is a form of homeowners insurance. These plans can be more costly than regular home insurance policies.
Another factor to consider is the place you live. The risk of your home being in an earthquake-prone area is higher. It is also high-risk if it is in an area with high crime or close to water. Other risk factors include a history of filing insurance claims, or if you own multiple properties.
Companies that offer insurance
Look for policies that include a variety add-on coverages if your property is high-risk. For example, you may want to purchase flood insurance if you live in an area that experiences frequent flooding. Liberty Mutual, which is a well-known insurer that caters to homeowners with high risk, has been in operation for more than 100 year. Amica Mutual, which is the oldest insurer in the country, also offers high-risk coverage.
Residents who live in high crime areas might also be subject to higher insurance rates. They may have a high crime rate or a home in need of major repairs. There may be aggressive dogs in their area, which could also cause property damage. You may also have to be careful about your credit score when applying for homeowners insurance.