What are the Best Companies for High Risk Homeowners Insurance?

Updated May 15, 2024
Featured image for “What are the Best Companies for High Risk Homeowners Insurance?”

Finding the best companies for high-risk homeowners insurance can be challenging, as the options available to you may depend heavily on your specific situation and location. With a tightening market, areas that were never considered risky are now being looked at through a different lens by home insurance carriers.

High-risk homeowners insurance is typically sought by individuals who live in areas prone to natural disasters (like hurricanes, earthquakes, or wildfires), have homes with a high claim history, or own properties that have unique risks. There are companies and markets known for providing solutions for high-risk homeowners.

  1. FAIR Plans (Fair Access to Insurance Requirements): If you’re having trouble obtaining insurance through the standard market due to the high risk associated with your property, you might consider looking into FAIR Plans. These are state-mandated insurance pools that offer basic coverage for properties in high-risk areas. Availability and coverage options vary by state.
  2. Specialty Insurers: Specialty companies are known for insuring unusual and high-risk properties. Specialty insurers often provide coverage options when traditional companies do not.
  3. Surplus Lines Insurers: These insurers can offer policies for risks that other insurers won’t cover. They are not underwritten in the same way traditional insurers are, which allows them to cover higher risk homes.

But, are we actually asking the right question?

The good news? There are options. The bad news? Many agents either do not have access to the right markets or know how to navigate the much more complicated process. A professional that specializes in high risk homeowners insurance is much better that calling 20 different agents, some of whom can actually harm your ability to get insurance if information is not properly relayed to underwriting. Here are a few reasons why a specialist is the smart move.

1. Expertise and Experience

  • Navigating Complexities: High-risk home insurance is more complex than standard home insurance. Professional agents have the expertise to navigate these complexities, understanding the nuances of policies that might not be apparent to someone without their experience.
  • Risk Assessment: Agents can accurately assess the level of risk your home presents and suggest ways to mitigate those risks, potentially lowering your premiums or making your home insurable when it might not have been otherwise.

2. Access to More Options

  • Wide Network: Professional agents often have access to a broader range of insurance products and companies, including those that do not directly sell to consumers. This access can be crucial for finding coverage for high-risk properties.
  • Specialty Markets: Agents can tap into specialty and surplus lines markets which might offer solutions when traditional insurers do not.

3. Personalized Service

  • Tailored Coverage: Agents can help tailor a policy to fit your specific needs, ensuring that you’re not underinsured or paying for unnecessary coverage.
  • Understanding Your Needs: A good agent takes the time to understand your situation, preferences, and concerns, providing a personalized service that’s hard to achieve through direct online purchases.

4. Assistance with Risk Management

  • Improvements and Upgrades: Agents can advise on home improvements or safety upgrades that might reduce your risk and, by extension, your insurance premiums.
  • Regular Reviews: Your agent can conduct regular reviews of your policy to ensure it remains the best fit for your needs, adjusting coverage as necessary if your situation changes.

5. Support Through the Claims Process

  • Advocacy: In the event of a claim, having an agent can make a significant difference. They can act as your advocate, helping to navigate the claims process, communicate with the insurer on your behalf, and push for a fair settlement.
  • Guidance: Agents can provide valuable guidance on the steps to take immediately following a loss, helping to ensure that your claim is processed smoothly and efficiently.

6. Time and Stress Savings

  • Efficiency: Searching for high-risk home insurance can be time-consuming and stressful. An agent can save you time by doing the legwork for you, comparing policies, and negotiating with insurers.
  • Peace of Mind: Knowing that a professional is managing your insurance needs can provide peace of mind, allowing you to focus on other aspects of your life.

Choosing the Right Agent

When selecting an agent, look for someone with experience in high-risk home insurance. A good agent should be willing to answer your questions, explain your options clearly, explain the nuances of policy provisions and be responsive to your needs.

In summary, while it’s possible to navigate the high-risk home insurance market on your own, the benefits of having a professional agent—ranging from their expertise and access to a wider range of products to personalized service and support—can be invaluable.