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Our content is backed by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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Written by
June Sham is a former insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.
Edited by
Mariah Posey
Mariah Posey is an auto, home and life insurance editor and writer for Bankrate.com. She aims to make the insurance journey as convenient as possible by simplifying industry lingo and implementing thoughtful content design to provide readers clear answers to their questions.
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation of how we make money . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure .
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Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
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If you live in a home that’s considered high risk by insurance companies or your homeowner’s profile is viewed as high risk, securing homeowners insurance may take a bit more effort. Understanding the factors that constitute risk in the eyes of an insurance company, and how to address those issues is an important part of navigating the process of obtaining insurance. Knowing what options are available in such situations can also make a difference when securing high-risk homeowners insurance coverage for your home.
When homeowners insurance companies evaluate a home’s potential risk, both the factors related to the home and the homeowner’s profile may be taken into consideration. Homeowners insurance companies typically have three main risk-related concerns: what type of loss or losses the house might face, the likelihood of the claim or claims and the associated costs. Greater possibility and higher costs of potential repairs are typically the factors that designate a home as high-risk.
When completing a homeowners insurance quote, an insurance company may also assess a homeowner’s individual profile to determine their risk level. Some factors a company may consider include:
Certain characteristics of a home, such as its location in a high-risk area or the home’s condition and type, could cause it to require high-risk home insurance. When evaluating a home, insurance companies may consider:
These are only some of the most common factors that could make a home high risk. When purchasing a home insurance policy, an insurance inspector will typically visit the property to do an exterior inspection. If there are any concerns, the insurance company will provide that information to you and advise on any action that must be taken to continue coverage.
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Answer a few questions to see personalized rates from top carriers.
Do you own or rent this home? ZIP Code Location-Icon Your information is kept securePowered by Coverage.com (NPN: 19966249)
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
If your home is considered a high risk by insurance companies, your homeowners insurance could be more expensive when compared to the average cost of home insurance. Maintaining high-risk homeowners insurance can be a significant financial expense over the course of owning your home. You may also have more difficulty finding insurance carriers willing to insure your home, especially without significant exclusions or policy limits.
Additionally, if you do need to file a claim when you have high-risk homeowners insurance, you may see a surcharge on your future premiums, making the insurance expense that much greater. The claim may also become part of your individual risk profile as a homeowner. When requesting new quotes from high-risk home insurance companies, your claims history and the amounts paid out may be factored into your rate.
While some natural disasters, like home fires and wind storms, are prevalent in regions across the United States, others are more common in certain regions. According to the Red Cross, the most common natural disasters in each geographic region of the United States include:
As a high-risk homeowner, the first step is to assess the risk. Is it due to a factor related to your home or individual profile, and is it within your control to fix? In some cases, it may be. How you maintain your home is something that insurance companies evaluate. This includes clearing away any external debris outside of your home and repairing any major cracks or damages. You may also want to consider the age of your roof and evaluate whether it needs replacement, and decide whether or not you should update any electrical, plumbing and heating systems in your home.
However, some risks are outside of your control and, as such, you may need to find alternative ways to address the hurdles. When looking for high-risk homeowners insurance in these situations, some steps could include:
Some places are simply considered high-risk markets to insure, and that reality is beyond your control as a homeowner. This is especially true as natural disasters like hurricanes, wildfires and catastrophic floods and tornadoes, increase in frequency across the country. Amid such challenges, home insurance rates are skyrocketing in some areas or insurance companies are pulling out of states or markets altogether.
With Florida’s frequent hurricanes, the Florida home insurance market has battled collapse as insurers flee the state. And Florida is not alone; additional states are considered to be high-risk markets due to the prevalence of various types of natural disasters or weather-related events. These include California, Texas, Mississippi, Louisiana and Oklahoma.
What’s more, a study published by Nature Climate Change indicates that flooding will be an increasing challenge in coming years, with Texas and Florida likely to experience as much as a 50 percent increase in flood risk by 2050.
Wildfires are another increasingly significant challenge. Since 1980, wildfires have been the fourth-most common disaster event according to the National Centers for Environmental Information, causing around $135 billion in damage. The wildfire risk is especially prevalent in western regions of the country and in California. After a string of catastrophic wildfires in the state, several insurers have stopped writing new home insurance policies in California altogether. Most recently State Farm and Allstate have announced that they will no longer accept applications for property insurance policies in California.
While the components of a home insurance policy may be the same, an insurance company that specializes in high-risk home insurance may have its own add-on coverage options, limits and exclusions for dwelling and liability coverage as well as covered perils. Finding the best home insurance for a high-risk home may take a little bit more effort, but it can be done. Check with neighbors to see where they are insured. You may also want to consider working with an insurance agent who has the ability to find other solutions, like a private insurer that might insure your home.
Because a high-risk home is a unique situation, it can be very hard to provide an estimate of how much the annual premium might be. Still, the typical factors that impact the cost of home insurance, like location, size, materials and age, may all still apply. Shopping around and requesting quotes from more than one company will also give you an idea of what your home insurance premium range might be.
Home insurance claims may stay on your record for about seven years, but that’s just an estimate. It could be shorter or longer depending on a number of factors. All insurance companies have their own rules, so it’s best to check with your insurance agent or another company representative to find out the company’s policy regarding claims history.
A home may be considered high-risk if it is located in an area that experiences extreme weather events or natural disasters such as flooding, hurricanes, tornados or wildfires. A home might also be considered a high risk to insure if it is located in an area prone to high rates of vandalism, crime or theft. A property’s poor condition can also be cause for a high-risk label, including homes that require a great deal of maintenance.
