How Do I Get High-Risk Homeowners Insurance?

If you can't find a policy, or if your current provider cancels or fails to renew your home insurance, it's an unfortunate fact that your high-risk status does not end when you leave. The Comprehensive Loss Underwriting Exchange (CLUE) report keeps track of your insurance history. Your CLUE report, on average, includes all of your claims, loss types, and payout amounts or denials going back five to seven years. In addition, the CLUE report provides general information about your home insurance history. Future insurers will most likely discover it through your CLUE report if you currently have high-risk insurance status.

Being high-risk can make it challenging to find a home insurance policy that you can afford, but you do have some options:

Look Around

There are insurance companies that provide plans for high-risk people. QuoteWizard, for example, can assist you in comparing plans from top home insurers to locate a company that will cover you.

Consult Your Neighbors

Your neighbors are likely to have the same insurance issues as you, especially if you live in a high-risk neighborhood due to extreme weather such as a flood or windstorm or a high crime rate. Inquire about their home insurance providers. There's a good chance they've got a referral.

Inquire With Your Real Estate Agent

The realtor who assisted you with your house should tell you which home insurance company previously covered the house. If your house is deemed a high insurance risk due to its age or condition, the previous insurer may be willing to work with you.

Consult a Third-party Agent.

Please speak with an independent agent to learn why they won't insure your home. Look into what you can do to solve the problem and make it insurable.

Examine Surplus Line Insurance.

Surplus line insurance can be an excellent choice for homeowners seeking high-risk home insurance. While they provide coverage for high-risk homeowners that traditional home insurance providers do not, there are some potential drawbacks.

Surplus line insurance is typically more expensive than standard home insurance policies, and a guaranty fund does not back it. This means there is no guaranty fund to back up claims if the surplus line insurer fails.

On the other hand, Surplus line insurance is not subject to the same regulations as standard home insurance providers. They are not required to adhere to state regulations regarding how much they charge in premiums or what coverage restrictions they maintain. As a result, surplus line insurance providers can take on risky home insurance situations that other insurers will not.

Check to see if your state has a FAIR plan.

For homeowners who have been unable to find home insurance, the Fair Access to Insurance Requirements (FAIR) plan is considered a last resort. It is a government-run program that provides basic dwelling coverage for damage caused by perils such as wildfires, windstorms, civil unrest, and vandalism.

Contact your state insurance department to determine if your state has a FAIR plan. If they offer a FAIR plan, they will also connect you with a licensed home insurance provider to help you find a policy.