You may pay more for homeowners insurance if you live in high-risk areas. This is because insurers evaluate different factors when determining rate factors, such as the possibility of extreme weather, wildfire risk, and prior insurance claims. To find out if your house is high-risk, request a quote. This can be done online, over the telephone, or by mail. It can take approximately 10 minutes to get a quote.
Options
For homeowners in high-risk areas, it may be worth looking into other providers for homeowners insurance. 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 insurance companies offer added coverage for homeowners who have high-risk properties. Amica, for example, provides protection for valuables and high value items. American Family provides coverage for sump pumps and water damage to high-risk homeowners.
Cost
High-risk homeowners insurance is more expensive than a standard policy. The premium increases for reasons such as a poor credit score. 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 is also more complex that a standard policy.
Homeowners can make improvements to their home to reduce the cost of homeowners insurance. A homeowner can reduce the chance of a fire by trimming branches, clearing brush from property, and even replacing their roof. You can also increase your credit score.
Requirements
There are many kinds of homeowners insurance. Some of them are especially designed for high risk homeowners. A high-risk property must meet specific requirements to be eligible for coverage. For example, the home must be newer and have fewer structural problems than an older home. If it has structural problems, insurance companies are less likely to approve your application. A FAIR plan is a type of homeowners insurance that covers high-risk homeowners. These plans are much more expensive than standard home policies.
Another factor to consider is the place you live. It is considered more at risk if it's located in an earthquake region. It is also high-risk if it is in an area with high crime or close to water. A history of filing insurance claims and the fact that you own multiple properties are additional risk factors.
Companies that offer coverage
If you have a high-risk property, you'll want to look for a policy that offers a variety of add-on coverages. If you live somewhere that is subject to flooding, flood insurance might be an option. Another great option is Liberty Mutual, which has been in business for over 100 years and caters to homeowners who are high risk. Amica Mutual, the oldest and most trusted insurer in the nation, also offers high risk coverage.
High-risk homeowners may have higher insurance rates if they live in high-risk locations. They could have a high level of crime or a house in dire need for major repairs. There may be aggressive dogs in their area, which could also cause property damage. Low credit scores can also make it difficult to obtain homeowners insurance.