Your homeowners insurance might be more expensive if your home is in a high risk area. This is because insurers take into account many factors in determining rates factors such as wildfire risk, extreme weather, and any previous insurance claims. Request a free quote to find out if your home is considered high-risk. You can request a free estimate online, over phone, or by post. The whole process can take around 10 minutes.
Other Options
High-risk homeowners who live in high-risk areas may wish to look into homeowner insurance with a different provider. Different insurance companies can offer different coverage and price options for homeowners insurance. This is why it's important to get multiple quotes from different insurance companies in order to get the best coverage and lowest price.
Numerous companies offer homeowners with high risk properties add-on coverage. For example, Amica provides coverage for valuables and high-value items. American Family is another option for high-risk homeowners. It offers sump pump coverage and water damage coverage.
Prices
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's also more complex than a standard policy.
High-risk homeowners insurance can be reduced by homeowners making changes to their home. The homeowner can lower the risk of fire by trimming trees, clearing dry brush and replacing their roof. They can also improve their credit scores.
Requirements
There are many types and options of homeowners insurance. But some are made 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. Insurers are less likely to approve an application if it has structural issues. You can also apply for FAIR homeowners insurance if you are a high-risk homeowner. These plans come at a higher cost than standard home insurance policies.
Another important factor is where your home is located. The risk of your home being in an earthquake-prone area is higher. You can also consider your home high-risk if you live in a dangerous area or are close to a water source. Additional risk factors include having filed insurance claims in the past or owning multiple properties.
Companies that offer insurance
If you own a high-risk asset, you will want to find a policy that includes a variety additional coverages. Flood insurance is a good option if you live near areas that are subject to frequent flooding. Liberty Mutual, an insurer that has been in business over 100 years, offers homeowners with high risk coverage. Amica Mutual, the oldest and most trusted insurer in the nation, 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. You might also find them living in an area where aggressive dogs are common, which can cause property damage. In addition, a low credit score can make it difficult to get homeowners insurance.