Best High-Risk Home Insurance (2024)

American Family, Liberty Mutual, and AIG offer some of the best high-risk homeowners insurance options.

Sarah Sharkey
Written bySarah Sharkey
Sarah Sharkey
Sarah SharkeyInsurance Writer
  • 7+ years writing insurance and personal finance content

  • Contributor to top media, including USA Today

A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Updated July 1, 2024

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A homeowners insurance policy is a key part of a solid financial foundation, but it can be difficult to obtain this essential coverage as a high-risk homeowner.

If you live in a high-risk area — or have a poor credit history or lengthy claims record — you may consider a Fair Access to Insurance Requirements (FAIR) Plan. State-run FAIR Plans can help you access the insurance you need, but they cost more and provide limited coverage. You have options to try before resorting to a FAIR Plan.

Here’s what you should know about high-risk home insurance, including comparing quotes and coverage options.

Quick Facts
  • Insurance companies may view your home as high-risk to insure if it has existing damage or is in a disaster-prone area.

  • Insurers may consider homeowners high-risk for owning certain dog breeds, leaving the home vacant for part of the year, or having dangerous amenities, like a pool or wood-burning stove.

  • Not all insurance companies work with homeowners in high-risk situations, but some do.

Best high-risk homeowners insurance

Some insurance companies don’t work with high-risk homes and homeowners, but many do. Here’s a closer look at a few of the best homeowners insurance companies for high-risk policyholders and homes.

Best for coastal homes: Liberty Mutual

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
4/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A

If you live in a coastal area at risk of hurricanes and tropical storms, Liberty Mutual could be a good fit. The company offers hurricane coverage as an option for its home insurance policies. Homeowners who choose to bundle this policy with a car insurance policy can tap into significant savings.

Pros
  • Ample selection of discounts

  • Bundle with auto insurance

  • Inflation protection

Cons
  • Below-average J.D. Power customer satisfaction rating[1]

  • Has a high number of customer complaints filed with the National Association of Insurance Commissioners (NAIC)

  • Fewer insurance add-ons than some competitors

Best for vacant homes: American Family

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.1/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
840
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$113/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$156/mo

If you don’t live in the same house year-round, you may have a hard time finding the appropriate insurance for when your house sits vacant. American Family sells vacant home insurance that can work for you.

In general, vacant homes are more difficult to insure because no one lives in the property to spot damage and facilitate fast repairs. Vacant homes also have a higher risk of theft and vandalism.

Pros
  • Offers vacant home insurance

  • Many discounts available

  • A (Excellent) financial strength rating from AM Best

Cons
  • Not available in every state

  • Slightly below-average J.D. Power customer satisfaction rating

  • Have to contact an agent to purchase an insurance policy

Best for high-value homes: AIG

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
NR
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$118/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$183/mo

AIG Private Client Group offers homeowners insurance for property owners with high-end homes. If you own an expensive property and want multiple layers of coverage to insure it, AIG might be the right fit. Although AIG doesn’t usually offer stand-alone coverage, the extensive coverage options might make it worth bundling your home insurance with one of the other insurance products available, like your auto insurance.

Pros
  • Above-average J.D. Power customer satisfaction rating

  • Ideal for high-value properties

  • High coverage limits available

Cons
  • Stand-alone policies aren’t available

  • Not available for all homeowners

  • Limited discounts

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How to know if your home is high-risk

Every insurer takes a slightly different stance on risk factors. But most insurers consider homeowners with an extensive insurance claims history or a poor credit history a higher risk. Insurers also view older homes or historic homes with antiquated building methods as a higher risk to insure.

The table below indicates some common risk factors to keep in mind about your home and your policyholder profile.

HomeownersHomes
Claims historyHome age
Credit historyHome location (crime statistics and severe weather frequency)
Home useStructural issues
PetsSecurity systems
Chosen coverage and deductibleTrampolines or swimming pools

States or regions that are high-risk

The exact location of your home will have a big effect on the perceived risk. Some states and regions have more risk factors than others.[2] For example, Florida homes are more susceptible to hurricanes, and California homes are more susceptible to wildfires.

The table below highlights some general risk factors for selected regions.

LocationRisk Factors
FloridaFloods, hurricanes
CaliforniaWildfires, earthquakes
LouisianaHurricanes, flooding
MidwestTornadoes
Coastal areasFloods, hurricanes

How to get high-risk home insurance coverage

If you run into issues when looking for insurance, use the following strategies to find a policy that suits your needs:

  • illustration card https://a.storyblok.com/f/162273/x/f2ca9fa443/protection-for-passengers.svg

    Ask your neighbors

    If you live in a high-risk area, your neighbors are likely facing a similar insurance situation. A simple conversation about their insurance coverage could help point you in the right direction.

  • illustration card https://a.storyblok.com/f/162273/150x150/b85ef2d0e5/banking-96x96-blue_015-dollar.svg

    Take advantage of discounts

    The right discount can make a big difference to your budget. Ask your insurance agent or company what home insurance discounts you qualify for to avoid paying higher premiums.

  • illustration card https://a.storyblok.com/f/162273/150x150/55b61a5856/jobs-and-professions-96x96-green_017-businessman.svg

    Ask your mortgage lender

    Most mortgage lenders require homeowners to pay off their mortgage to carry a minimum amount of homeowners insurance. If you’re struggling to find insurance, it’s a good idea to talk to your lender. In some cases, the lender can point you toward an insurance company that will offer you coverage.

  • illustration card https://a.storyblok.com/f/162273/150x150/95fa30ac35/insurify-icons-auto-orange-96x96_005-insurance.svg

    Consider a FAIR Plan

    In some states, you can tap into a state-run insurance program to get the coverage you need.

  • illustration card https://a.storyblok.com/f/162273/x/fa11c1fe75/comparison-website.svg

    Compare quotes

    Shopping online for an insurance company can be a great way to find high-risk home insurance at a lower cost. Compare coverage options and premiums from multiple insurance companies before buying a policy.

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What to do if you’re denied coverage

After a denial, you can take action to get the coverage you need.[3] Use the steps below as a guide if you can’t secure home insurance.

Assess the risk and take steps to remedy it yourself

The first step is to find out why an insurer denied you coverage. Your insurer might deny you coverage if you live in a location with a high risk for natural disasters or crime or if your home has a damaged roof.

In some situations, you can choose to remedy the issue on your own. For example, if an insurance company denied you coverage due to an older roof, replacing it could help you qualify for coverage. Or if you live in a high-crime area, installing a security system might make it possible to obtain regular insurance.

Good to Know

Generally, making repairs to a home in poor condition improves your chances of getting insurance. If the home you want to insure has extensive property damage, like water damage, consider making the necessary repairs before applying for insurance again. Installing mitigation measures against potential disasters, like hurricane-resistant windows, can also make your home more attractive to insure.

Consider non-standard insurance companies

A standard home insurance policy often excludes coverage for certain natural disasters. As a homeowner seeking coverage for a particular disaster, you may need to turn to non-standard home insurance companies to find the policy you have in mind.

Apply for coverage again

After exploring the different insurance companies in your area, it’s time to apply for insurance again. For example, if you made repairs to eliminate potentially high-risk situations from your home, an insurer may be willing to provide the coverage you need.

Get home insurance through the FAIR Plan as a last resort

FAIR Plans are available to homeowners in some states. While this type of policy could help you get coverage, it’s usually more expensive than a standard home insurance policy. Plus, most FAIR Plans have limited coverage.

If possible, seek out other options before committing to a FAIR Plan.

FAIR Plan insurance explained

A Fair Access to Insurance Requirements (FAIR) Plan is a home insurance program for uninsurable homes or homeowners. It’s a state-run option that specifically covers homeowners in high-risk areas who can’t secure standard coverage through the voluntary market, according to the International Risk Management Institute (IRMI).[4]

In general, FAIR Plans have higher insurance premiums and deductibles than standard home insurance policies. FAIR Plans offer different coverage from standard insurance policies, and the covered events vary by state.

For example, plans in California include coverage for brush fires, and New York plans offer wind and hail coverage for some coastal communities.[5]

FAIR Plan policies aren’t available in every state. But if you can’t find coverage through the private market, seeking out a FAIR Plan option could help you tap into the coverage you need.

Contact your state’s FAIR Plan

If you want more information about your state’s FAIR Plan, you can reach out to the appropriate organization.

The table below highlights which states have FAIR Plans and provides the accompanying phone numbers.

High-risk home insurance FAQs

The following information can help answer your remaining questions about high-risk home insurance.

  • Does high-risk insurance cover natural disasters?

    While standard home insurance policies usually exclude coverage for some natural disasters, a high-risk policy often includes coverage for specific natural disasters. Read through your policy’s specific covered perils to determine which natural disasters it covers.

  • Does high-risk insurance cover all types of damage?

    No. In general, a high-risk insurance policy doesn’t cover all types of damage. High-risk policies usually cover only the basics. But the covered events vary from policy to policy, which means you must read the fine print.

  • What makes a home insurance policy a higher risk?

    If your home is in an area prone to severe weather or with high crime rates, insurers may see it as riskier to insure. Other factors that affect the risk of a policy include your home’s structural issues, your credit history, your claims history, and more.

  • Is it hard to get homeowners insurance after an insurer drops you?

    After your insurance company drops you, finding a new homeowners insurance policy can be more difficult. Although you may face a challenge, you may still find coverage options available through another insurance company or your state’s FAIR Plan.

Sources

  1. J.D. Power. "Home Insurer Exodus from Several States Creates Challenges and Opportunities, J.D. Power Finds."
  2. Insurance Information Institute. "Spotlight on: Catastrophes - Insurance issues."
  3. Consumer Financial Protection Bureau. "Consumer advisory: Take action when home insurance is cancelled or costs surge."
  4. International Risk Management Institute. "Fair Access to Insurance Requirements Plans."
  5. Insurance Information Institute. "What if I can't get coverage?."
Sarah Sharkey
Sarah SharkeyInsurance Writer

Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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