Substandard Home Insurance

Is high risk homeowners insurance the same as substandard home insurance? It does not have to be. Substandard lender placed and FAIR plan policies put the consumer at a risk should another claim occur and either not be covered or covered with depreciation causing thousands to be paid by the consumer even after paying their deductible. Most people assume that after they pay their deductible that everything will be paid in full by the insurance company and this is often not the case after you have claims on your home insurance record.

When someone has high risk car insurance we can squarely place the blame on 1 person. When someone has high risk homeowners insurance it is not so simple. No one asks for a tornado to rip their roof off, a hot water heater to leak or a pipe to burst in a wall. Does anyone you know periodically open their walls up to keep the pipes maintained? Life just isn’t that simple and while we can maintain our houses to an extent, there are many unpreventable claims that can and often do occur that are out of our control.

The answer for some companies is to not offer coverage at all or only offer substandard home insurance coverage. The good news is that not all companies have this philosophy and some look at risks on an individual basis. These are often the best choice for consumers so that they can maintain quality insurance while not having to be placed in a substandard lender placed or FAIR plan policy.