High Risk Homeowners Insurance

High-risk homeowners insurance, also known as “non-standard” insurance, is designed for properties or homeowners that regular insurance companies consider too risky to insure. This can be due to various reasons such as the homeowner’s claims history, poor credit score, or the property’s location in a high-risk area for natural disasters like floods, hurricanes, or wildfires.

Properties might also be labeled high-risk due to their condition, such as older homes that haven’t been updated to meet current safety standards. High-risk insurance tends to be more expensive than standard policies because it compensates for the greater potential of claims.

For homeowners who cannot obtain insurance through the traditional market, there are state-sponsored Fair Access to Insurance Requirements (FAIR) Plans. These plans are often seen as a last resort because they usually provide less coverage at a higher cost.

It’s important for homeowners needing high-risk insurance to shop around and compare quotes and terms from different insurers. Some might specialize in high-risk coverage and offer better rates or more comprehensive coverage than others. Improving the property, such as updating wiring or plumbing and adding storm shutters, can also help reduce insurance premiums over time.