Your homeowners insurance might be more expensive if your home is in a high risk area. This is because insurers evaluate different factors when determining rate factors, such as the possibility of extreme weather, wildfire risk, and prior insurance claims. To find out if your house is high-risk, request a quote. This can be done online, over the telephone, or by mail. The process of getting a quote can take up to 10 minutes.
There are many 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. To get the best price and coverage, compare quotes from multiple providers.
For homeowners with high-risk properties, many companies offer additional coverage. Amica offers coverage for high-value and valuable items. American Family offers coverage for water damage and sump pumps to homeowners at high risk.
Cost
High-risk homeowners' insurance is more expensive that a standard policy. The premium increases for reasons such as a poor credit score. A person with a poor credit score will pay twice the amount for coverage as someone with a good credit score. It's also more complex than a standard policy.
Homeowners can make improvements to their home to reduce the cost of homeowners insurance. 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. You must have a high-risk residence to be eligible for insurance. A home that is high-risk must meet certain requirements. For example, it must be more recent and have less structural problems than older homes. Insurers are less likely to approve an application if it has structural issues. An alternative option is to get homeowners insurance for high-risk homeowners called a FAIR plan. These plans come at a higher cost than standard home insurance policies.
Another factor to consider is the place you live. The risk of your home being in an earthquake-prone area is higher. It is also high-risk if it is in an area with high crime or close to water. Other risk factors include a history of filing insurance claims, or if you own multiple properties.
Companies that offer coverage
Look for policies that include a variety add-on coverages if your property is high-risk. If you live in an area where flooding is frequent, you may consider flood insurance. Liberty Mutual, a company that has been in existence for more 100 years, is another option. This insurance caters to high-risk homeowners. Amica Mutual (the oldest national insurer) also provides high-risk coverage.
Residents who live in high crime areas might also be subject to higher insurance rates. They could have a high level of crime or a house in dire need for major repairs. They may also live in an area with aggressive dogs, which could cause damage to the property. A low credit score may make it difficult for homeowners to obtain insurance.