A Quick Guide to High-Risk Homeowners Insurance

high risk homeowners insurance

A Quick Guide to High-Risk Homeowners Insurance

Insuring your home is important to protect your valuables from natural calamities, fire, and theft. Buying home insurance can be difficult. If your house is in an area where natural disasters are common, or there are structural issues with your house, you may have to invest in high-risk homeowners insurance.

Is It Hard to Get Homeowners Insurance?

Getting homeowners insurance depends upon these factors:

  • Region: Your home is considered high-risk by insurance companies if wildfires or earthquakes are common in your area.
  • Claims: If you have a history of filing a high number of claims, your homeowners insurance rate may be high.
  • Low credit score: A favorable credit history is not only crucial for availing credit but also for insuring your house.
  • Occupancy: If you spend a lot of time away from your property, your home is considered high-risk, and you have to pay more for insuring your home.

How Do I Get High-Risk Homeowners Insurance?

When you buy a house, it is advisable to ask your neighbors and the realtor about the type of homeowners insurance that you will need. If your house belongs to the high-risk category, they can also help you find the right insurer for you.

Most major carriers do not offer high-risk insurance. You may get the right coverage with a local insurer who understands the risk that comes with your house.

If you can’t find an insurance agency that will cover your home, the Fair Access to Insurance Requirements (FAIR) plan may work in your favor. This government-run scheme provides coverage against wildfires, windstorms, vandalism, and riots. You can reach out to the state insurance department to sign up for a FAIR plan.

However, you can only apply for a FAIR plan if you have been previously denied insurance. Moreover, the coverage offered through the FAIR plan is expensive.

With proper research, you can successfully find the right high-risk homeowners insurance. Do you have additional questions about home insurance coverage? Contact the experts at Club Agency Insurance Brokerage in Garden City, New York today.



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