Shopping for a standard homeowners insurance policy can be complicated, but it gets trickier when insurers categorize you or your property as high risk. Your home can be saddled with a high-risk designation for any number of reasons, but it will almost always result in higher premiums. Some insurers may deny you coverage altogether.
We at the MarketWatch Guides Home Team have analyzed the best homeowners insurance companies around the country and identified the ones that are most likely to treat you and your home fairly. Our experts have also provided some tips on what to do if insurers label your home as high risk.
Who Needs High-Risk Home Insurance?
A home can be considered high-risk if it has structural issues, is in disrepair or is in a location with a high crime rate or is prone to natural disasters. Insurers will also consider a homeowner high risk if they have a history of filing liability claims — claims in which the insurer pays for damages the covered individual caused to someone else or their property.
Older homes, dangerous dog breeds and low credit scores are some other factors that may deem your home insurance policy high-risk. Check out our breakdown below.
Homeowner
- Owning dog breeds considered aggressive
- Having a criminal record
- Having an excessive claims history
- Running a home-based businesses
- Having a low credit score
Property
- Being located in an area with frequent crime or extreme weather
- Frequent vacancy, such as a vacation home
- Older build
- Roof older than 20 years
- Structural issues
Read More Top 5 High-Risk Homeowners Insurance Companies of 2024
We examined coverage add-ons, geographical availability and discounts to offset expensive high-risk premiums when ranking our top five companies. After in-depth research, the following insurers emerged as the best ones to start with when shopping for a high-risk homeowners insurance quote:
*A.M. Best ratings accurate as of July 2024
How Much Does High-Risk Homeowners Insurance Cost?
High-risk policyholders are more likely to file a claim, so they pay more for their policies. How much more they pay depends on the risks involved. With everything else being equal, you could pay a different premium if your home is susceptible to wildfire damage than if you have a low credit score and filed a recent home insurance claim.
There are many factors that can cause you to be considered a high-risk homeowner which have different levels of impact on price. Here are some of the common risk factors that result in higher premiums.
The Cost of Home Insurance with a Claims History
Homeowners with a claims history in the past five years can expect to pay around $3,585 per year for home insurance coverage, based on our data from Quadrant Information Services. However, the impact on your premium will depend on the type of claim you have filed. Use the chart below to understand what your average premium might look like based on your claims history.
Claim Type National Average with Claim* Wind and Hail $2,958 Fire and Lightning $3,334 Water Damage and Freezing $3,221 *All premium data in this article is sourced from 5 million quotes collected in 2024 by Quadrant Information Services The Cost of Home Insurance with Poor Credit
Your credit history can also have a large impact on how much you pay for home insurance in most parts of the country. Only California, Hawaii, Massachusetts and Michigan have outlawed the use of credit ratings as a factor in auto and home insurance premiums.
Based on data collected from Quadrant Information Services, homeowners with poor credit typically pay 2.5 times more than someone with good credit. We found that Amica and Progressive are the widely available insurance providers that offer the lowest premiums to those with poor credit scores.
Credit Tier National Average* Poor $9,855 Good $2,728 Excellent $2,007 *All premium data in this article is sourced from 5 million quotes collected in 2024 by Quadrant Information Services How We Gather Cost Information
Using June 2024 data from Quadrant Information Services, we obtained 5 million quotes for each provider in this article across over 15,000 zip codes and compared them to the average annual premium in the U.S. According to this data, the average cost of homeowners insurance is $2,728 annually. Read our full cost methodology below.
For providers unavailable in Quadrantâs database, we calculated the average annual premiums using quotes we manually pulled from the providerâs website or representatives. Quotes include comparable policy details in ZIP codes across the U.S. Your cost may vary depending on your location, coverage and personal property needs.
What Should I Do If I Can’t Get High-Risk Homeowners Coverage?
With so many factors playing into high-risk home insurance, coverage through a private company isn’t guaranteed. Private insurers may deny you if your risk factors are too high. If this happens multiple times, consider a Fair Access to Insurance Requirements (FAIR) Plan as a last resort.
Created in the 1960s, FAIR Plans are state-run entities that provide high-risk coverage that taxpayers and private insurers subsidize, spreading the risk among multiple entities. Coverage and eligibility requirements differ slightly by state, so contact your state insurance department to learn more.
Reasons Companies Deny Home Insurance Coverage
An insurance company might deny you home insurance coverage if it deems you or your home too risky to insure. Denial might be due to risk factors related to you specifically — your claims history, for example — or the condition of your property. Here’s what insurers may consider when deciding whether to extend coverage:
What are high-risk items in home insurance?
Some items you may want to cover with your homeowners policy may also be considered high risk. These tend to include expensive items that can be easily damaged or stolen like smartphones, computers, high-end cameras and sporting equipment.
Our Methodology: Our System for Ranking the Best Home Insurance Providers