Homeowners insurance can be more expensive if you live near high-risk areas. This is because insurers evaluate different factors when determining rate factors, such as the possibility of extreme weather, wildfire risk, and prior insurance claims. Request a free quote to find out if your home is considered high-risk. Online, over the phone, and even by mail, it is possible to get a quote. The process of getting a quote can take up to 10 minutes.
Options
For homeowners in high-risk areas, it may be worth looking into other providers for homeowners insurance. You will find that the coverage and price of homeowners insurance policies may vary widely among insurance providers. To get the best price and coverage, compare quotes from multiple providers.
Many insurance companies offer added coverage for homeowners who have high-risk properties. Amica, which provides valuables coverage, also covers high-value items. Another option for high-risk homeowners is American Family, which offers water damage and sump pump coverage.
Cost
High-risk homeowners' insurance is more expensive that a standard policy. The premium increases for reasons such as a poor credit score. Coverage for someone with low credit scores will cost twice as much as someone with good credit. It is also more complex that a standard policy.
High-risk homeowners insurance can be reduced by homeowners making changes to their home. Homeowners can reduce their chance of fire by trimming branches and clearing away dry brush. You can also increase your credit score.
Requirements
There are many types of homeowners insurance. Some are designed specifically for high-risk homeowners. To be eligible for coverage, high-risk homes must meet certain criteria. For example, the home must be newer and have fewer structural problems than an older home. If the structure is not in good condition, it will be less likely that insurance companies approve your application. High-risk homeowners can also get FAIR insurance, which is a form of homeowners insurance. These plans are more expensive than standard home insurance policies.
Another important factor is where your home is located. The risk of your home being in an earthquake-prone area is higher. Your home may also be considered high-risk in areas where crime is common or it is near a water source. You may also be at risk if you have a history of filing insurance claim or if your property is in a high-risk area.
Companies that offer coverage
You should look for policies that offer a range of additional coverages if you have high-risk properties. If you live in an area where flooding is frequent, you may consider flood insurance. Another great option is Liberty Mutual, which has been in business for over 100 years and caters to homeowners who are high risk. Amica Mutual, which is the oldest insurer in the country, also offers high-risk coverage.
Insurance rates for high-risk home owners may be higher if they live near dangerous areas. You may find your home is in dire need of major repairs or you might have a high rate of crime. They may also live in an area with aggressive dogs, which could cause damage to the property. You may also have to be careful about your credit score when applying for homeowners insurance.