What is High-Risk Home Owner's Insurance?

Think “high-risk” and most people think of hurricanes, floods and earthquakes, and indeed if you live in certain parts of the country more likely to be affected by these natural disasters, you will pay more for your homeowner’s insurance.

However, these are not the only factors which fall under the category of high risk; if you live in areas particularly prone to high crime rates or fires, you are classified as high risk and it is especially important to shop around and compare rates for your homeowner’s insurance.

Insurance companies also classify several things that you may not have thought of as high risk factors. If you have an unfenced swimming pool, a wood-burning stove or your house is a major fixer upper or constructed of flammable material, you will probably pay more for your homeowner’s insurance.

Insurance companies also frown upon home owners who frequently file claims – several claims filed within a two year period suggests to them that you may be a high risk potential.

Short of actually moving to another part of the country, there may not be much you can do to lower your insurance premiums. One thing you can do if you feel your insurance premiums are too high – or if you have been denied insurance coverage altogether – is check with your state as to whether they have a Fair Access to Insurance Requirement Plan (FAIR)

Currently over 30 states offer this type of government backed policy which aims to insure people who cannot get insurance as they live in a high risk area. The policy may be less comprehensive than a regular policy but realistically it may be your only option to have insurance.

However, be sure to check around before you commit. You may find that you can still buy insurance at a more reasonable price than you anticipated and at a lower price from a private insurance company than from your state insurer or “insurer of last resort”.

How To Avoid Being Labeled As High Risk