Your homeowners insurance might be more expensive if your home is in a high risk area. Insurance companies consider many factors in determining homeowner insurance rates. This includes the likelihood of extreme weather or wildfire risk and past insurance claims. You can request a free estimate to determine if your property is at high risk. This can be done online, over the telephone, or by mail. It can take approximately 10 minutes to get a quote.
Options
For homeowners in high-risk areas, it may be worth looking into other providers for homeowners insurance. There are many insurance companies that offer homeowners insurance. The prices and coverage can vary greatly. For this reason, you should compare multiple quotes from different providers to find the best coverage and price.
For homeowners with high-risk properties, many companies offer additional coverage. Amica, for example, provides protection for valuables and high value items. American Family is another option for high-risk homeowners. It offers sump pump coverage and water damage coverage.
Cost
High-risk homeowners insurance is more expensive than 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's also more complex than a standard policy.
To reduce the cost of high-risk homeowners insurance, homeowners can make changes to their property. By trimming branches, clearing properties of dry brush, and replacing the roof, homeowners can lower their fire risk. A homeowner can also improve his credit score.
Requirements
There are many types and options of homeowners insurance. But some are made specifically for high-risk homeowners. You must have a high-risk residence to be eligible for insurance. You must make sure that the home is newer and has fewer structural defects than older homes. Insurance companies will not approve your application if the home has structural problems. A FAIR plan is a type of homeowners insurance that covers high-risk homeowners. These plans can be more costly than regular home insurance policies.
Another factor is your home's location. It is considered to be at higher risk if it is located in an earthquake zone. Alternatively, if your home is located in a crime-ridden area, or is close to a water source, it is considered high-risk. 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
If you own a high-risk asset, you will want to find a policy that includes a variety additional coverages. For example, you may want to purchase flood insurance if you live in an area that experiences frequent flooding. Liberty Mutual, an insurer that has been in business over 100 years, offers homeowners with high risk coverage. Amica Mutual (the oldest national insurer) also provides high-risk coverage.
Higher insurance rates may be available for homeowners who live in high risk areas. They might live in areas with high crime rates or homes that need major repairs. Their home may also be surrounded by aggressive dogs that could cause property damage. A low credit score may make it difficult for homeowners to obtain insurance.