What is High-Risk Homeowners Insurance?

High-risk homeowners insurance is something that many never realized existed until standard coverage just didn’t cover their needs anymore. A home can be considered high-risk for a variety of reasons, and it’s important that you shop around for the right coverage to be sure that you’re getting the best home coverage for your property.


High-Risk Homeowners Insurance Coverage


The Home

The home’s location, history, and condition are all considered when deciding whether or not a home is considered high-risk.

  • Location – The location may force a home into the high-risk category. For example, if a property is located in an area prone to hurricanes, tornadoes, earthquakes, and other natural disasters, it may automatically be categorized as high-risk by insurance companies. Homes in areas with high crime rates may also be included, too.
  • History – Previous claims filed on a home may impact the cost of future coverage. High-risk home insurance may be a result of multiple claims, even if the claims were entirely necessary and legitimate.
  • Condition – A home that is in poor condition and old may have a higher chance of the homeowner filing a claim. Homeowners who do not keep on top of home maintenance could face more problems with the house.


The Insured

Sometimes, it’s not the house that causes the high risk, it’s the homeowner. Homeowners have more effect on their insurance policies than they might realize.

  • Credit report – A poor credit score and a blemished credit report prompt insurance companies to label the applicant as high risk. This is regardless of previous claims made on the home.
  • Inquiries – Many insurance companies make a record of any time a policyholder calls to inquire about coverage after an incident has occurred. The insurer will count this inquiry as a claim even if the incident is not covered and no further action was required. In this case, being inquisitive can result in being labeled a high-risk policyholder.


When you’re looking for homeowners insurance that suits your property and belongings, contact your insurance professionals at Kneller Agency. Our dedicated experts are ready to assist you with all your home insurance needs.

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