You may pay more for homeowners insurance if you live in high-risk areas. Insurance companies consider many factors in determining homeowner insurance rates. This includes the likelihood of extreme weather or wildfire risk and past insurance claims. To find out if your house is high-risk, request a quote. 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. You will find that the coverage and price of homeowners insurance policies may vary widely among insurance providers. It is important to compare the prices and coverage of different insurance providers in order to get the best deal.
For homeowners with high-risk property, there are many companies that offer extra coverage. Amica, for instance, offers valuables and high-value coverage. American Family offers coverage for water damage and sump pumps to homeowners at high risk.
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's also more complex than a standard policy.
Low-risk homeowners insurance is more affordable if homeowners make changes to the property. By trimming branches, clearing properties of dry brush, and replacing the roof, homeowners can lower their fire risk. A homeowner can also improve his credit score.
Requirements
There are many types of homeowners insurance. Some are designed specifically for high-risk homeowners. High-risk properties must meet certain conditions to qualify for coverage. 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. Insurance companies may not approve your application if there are structural problems. A FAIR plan is a type of homeowners insurance that covers high-risk homeowners. However, these plans are expensive compared to a standard home insurance policy.
The location of your home is another factor. If it is in an earthquake zone, it is considered a higher risk. You can also consider your home high-risk if you live in a dangerous area or are close to a water source. Another risk factor is a history with filing insurance claims or the ownership of multiple properties.
Companies that offer insurance
Look for policies that include a variety add-on coverages if your property is high-risk. Flood insurance is a good option if you live near areas that are subject to frequent flooding. Liberty Mutual is another great option. It has been around for more than 100 years and caters specifically to high-risk homeowners. Amica Mutual is the country's oldest insurer and offers high-risk coverage.
Higher insurance rates may be available for homeowners who live in high risk areas. You may find your home is in dire need of major repairs or you might have a high rate of crime. 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.