You may pay more for homeowners insurance if you live in high-risk areas. Insurers consider many factors when determining homeowners insurance rates, including the risk of wildfires, extreme weather and previous insurance claims. To find out if your house is high-risk, request a quote. You can do so online, over the phone, or even by mail. The process of getting a quote can take up to 10 minutes.
There are many options
High-risk homeowners who live in high-risk areas may wish to look into homeowner insurance with a different provider. Different insurance companies can offer different coverage and price options for homeowners insurance. It is important to compare the prices and coverage of different insurance providers in order to get the best deal.
Many insurance companies offer added coverage for homeowners who have high-risk properties. Amica offers coverage for high-value and valuable 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 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. This policy is also more complicated than standard policies.
You can make some changes to your property to lower the cost for homeowners with high-risk insurance. Homeowners can reduce their chance of fire by trimming branches and clearing away dry brush. They can also improve their credit scores.
Requirements
There are many types and options of homeowners insurance. But some are made specifically for high-risk homeowners. In order to get coverage, a high-risk home should meet certain requirements. For example, the home must be newer and have fewer structural problems than an older home. Insurers are less likely to approve an application if it has structural issues. You can also apply for FAIR homeowners insurance if you are a high-risk homeowner. These plans are more expensive than standard home insurance policies.
Another factor is your home's location. It is considered more at risk if it's located in an earthquake region. It is also high-risk if it is in an area with high crime or close to water. A history of filing insurance claims and the fact that you own multiple properties are additional risk factors.
Companies that offer insurance
A policy with a wide range of coverages is important if you have a high-risk home. Flood insurance is a good option if you live near areas that are subject to 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.
Residents who live in high crime areas might also be subject to higher insurance rates. They might live in areas with high crime rates or homes that need major repairs. They may also live in an area with aggressive dogs, which could cause damage to the property. In addition, a low credit score can make it difficult to get homeowners insurance.