Your homeowners insurance might be more expensive if your home is in a high risk area. This is because insurers consider different factors when deciding rate factors. For example, the likelihood of severe weather, wildfire danger, and previous insurance claims. You can request a free estimate to determine if your property is at high risk. Online, over the phone, and even by mail, it is possible to get a quote. 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.
Many companies offer add-on coverage for homeowners with high-risk properties. For example, Amica provides coverage for valuables and high-value items. Another option for high-risk homeowners is American Family, which offers water damage and sump pump coverage.
Cost
The premium for high-risk homeowners insurance will be higher than the standard policy. Poor credit scores can lead to an increase in premiums. A person with a low credit score will pay more than twice as much for coverage than a person with a high credit score. It also comes with a higher level of complexity than a standard insurance policy.
To reduce the cost of high-risk homeowners insurance, homeowners can make changes to their property. By trimming branches, clearing properties of dry brush, and replacing the roof, homeowners can lower their fire risk. You can also improve your credit score.
Requirements
There are many types of homeowners insurance. Some are designed specifically for high-risk homeowners. A high-risk property must meet specific requirements to be eligible for coverage. To be eligible for coverage, a high-risk home must have fewer structural problems and be older than an older one. Insurers are less likely to approve an application if it has structural issues. High-risk homeowners can also get FAIR insurance, which is a form of homeowners insurance. These plans are more expensive than standard home insurance policies.
The location of your home is another factor. The risk of your home being in an earthquake-prone area is higher. Your home may also be considered high-risk in areas where crime is common or it is near a water source. You may also be at risk if you have a history of filing insurance claim or if your property is in a high-risk area.
Companies that offer coverage
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, an insurer that has been in business over 100 years, offers homeowners with high risk coverage. Amica Mutual (the oldest national insurer) also provides high-risk coverage.
Homeowners who live in high-risk areas may also have higher insurance rates. You may find your home is in dire need of major repairs or you might have a high rate of crime. They may also live in an area with aggressive dogs, which could cause damage to the property. A low credit score may make it difficult for homeowners to obtain insurance.