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Best High-Risk Homeowners Insurance Companies 2021

Read this guide to learn if your home is high-risk and which companies offer high-risk homeowners insurance.

Vacation home in storm weather. iStock

Your home may be considered risky to insure if it’s in a high-risk area for crime and natural disasters. Several insurance companies won’t insure a high-risk home, and even if they do, it could cost more than the average policy.

The This Old House Reviews Team created a guide to help high-risk homeowners explore their best home insurance options. In this guide, we’ll walk you through what home insurance companies to consider and what to do if none of these companies will insure your home.

To get home insurance quotes in your area, call 855-948-5219 or enter your zip code in our free quote tool:

Top 3 High-Risk Home Insurance Companies

The highest rated homeowners insurance companies for high-risk homes include:

  1. Allstate: Best Overall
  2. Liberty Mutual: Best Discounts
  3. State Farm: Best Endorsements

When your home is classified as high risk, you may have trouble finding a provider that will insure your home.

Here are three insurance companies that often offer coverage for high-risk homeowners.

1. Allstate: Best Overall

We recommend Allstate as the best overall provider for its impressive comprehensive coverage, customer service, and unique add-on options.

As one of the most popular companies in all 50 states, it’s a great place to start when you’re looking for a high-risk homeowners insurance policy. Work with a representative to see if they can offer coverage on your home. Get your free Allstate quote here.

Allstate Endorsements:

  • Roof surface extended coverage
  • Water backup
  • Green improvement reimbursement
  • Extended coverage on jewelry, watches, and furs
  • Identity theft restoration
  • Claim rate guard
  • Yard and garden
  • Scheduled personal property
  • Electronic data recovery
  • Business property
  • Musical instruments
  • Sports equipment

Additional Benefits of an Allstate Policy:

  • Provides 24/7 customer service
  • Customers can choose 60% or 70% of dwelling coverage for personal property protection
  • Available in all 50 states

Learn More: Allstate Home Insurance Review


2. Liberty Mutual: Best Discounts

Liberty Mutual offers a variety of discounts to homeowners looking for home insurance coverage. Because high-risk homes cost more to insure, this long list of discounts helps bring down the monthly premium.

Liberty Mutual has common discounts, like ones for bundling policies and for being claims-free, but the company also has unique discounts, including having a new home or having a new roof. Get your free Liberty Mutual quote here.

Liberty Mutual Optional Coverages:

  • Water backup and sump overflow
  • Identity fraud expense
  • Earthquake
  • Blanket jewelry
  • Hurricane
  • Personal property replacement cost

Additional Benefits of a Liberty Mutual Policy:

  • Has a hurricane endorsement for states susceptible to hurricanes
  • Has a claims center open 24/7

Learn More: Liberty Mutual Home Insurance Review


3. State Farm: Best Endorsements

State Farm has unique endorsement options that allow you to customize your home insurance policy.

When you get a quote, you’re assigned to a specific local agent who will work with you on any extra coverage you might need. This also gives you a great opportunity to negotiate coverage on your high-risk property if needed. They’ll help you figure out whether or not your house can be covered and why.

State Farm Optional Coverage:

  • Earthquake
  • Sewer or drain backup
  • Identity restoration
  • Sinkhole collapse
  • Special computer coverage
  • Business property
  • Loss assessment
  • Extra options available through each State Farm agent

Additional Benefits from a State Farm Policy:

  • Connects you with a local agent for signing up, policy management, and customer service
  • Online quote tool features a home value estimator
  • Extensive online resources to help you understand how much coverage you need

Learn More: State Farm Home Insurance Review

Which Is The Best High-Risk Homeowners Insurance Company for You?

If your home is at high risk, your best bet for finding home insurance is by checking with Allstate, Liberty Mutual, or State Farm. If they deny you coverage, consider contacting your state insurance department about a FAIR plan.

To get free home insurance quotes from providers in your area, call 855-948-5219 or enter your zip code in the tool below:

Compare the Top High-Risk Homeowners Insurance Companies

Company State Farm Liberty Mutual Allstate
Company State Farm Liberty Mutual Allstate
Other structures coverage limits 10% of dwelling 10% of dwelling 10% of dwelling
Personal property coverage limits 70% of dwelling 70% of dwelling 60% or 70% of dwelling
Liability coverage limits $100,000, $300,000, $400,000, $500,000, $750,000, or $1 million $100,000, $200,000, $300,000, or $500,000 $100,000, $200,000, $300,000, or $500,000
Monthly price* About $100 About $140 About $300
Unique add-ons Home business, earthquake, sinkhole collapse Water backup and sump overflow, hurricane Musical instruments, yard and garden
Customer service Local agents available at different hours, online claims 24/7 for claims; limited for sales and service 24/7
BBB rating A+ A+ A+

*Prices based on quotes from Raleigh, North Carolina, and Houston, Texas.

What’s a High-Risk Home?

There are several factors that could cause an insurance company to classify you or your home as high risk.

Breakdown of High-Risk Homes

You Your Home
You Your Home
History of filing a lot of claims Location is susceptible to extreme weather
Poor credit score of 649 or below Location has a high crime rate
Criminal history House is in need of repairs
Aggressive pets Vacation home isn’t used frequently

What High-Risk Home Insurance Coverage Includes

If a provider decides to insure your high-risk home, you can expect to receive the same coverage as a standard policy:

  • Dwelling Coverage: Dwelling coverage protects the structure of your home. This includes the foundation, walls, and anything else built into the home. To determine how much of this coverage to purchase, estimate how much it would cost to rebuild your home as if it were new. You can do this by using an insurance company estimator, talking to an appraiser, or calculating the cost yourself, and purchasing $100–$155 of coverage per square foot.
  • Coverage for Other Structures: This coverage is for detached structures on your property, like a garage or fence. It usually comprises 10% of your dwelling coverage.
  • Personal Property Coverage: This covers your personal belongings and protects them if they’re stolen or damaged while in your home, in your car, or on a trip. This coverage is usually 50% of your dwelling coverage.
  • Coverage for Additional Living Expenses: This reimburses you for living expenses you incur when you have to live elsewhere during home repairs. This could include the cost of a hotel room or the cost of meals. This coverage typically comprises 20% of dwelling coverage.
  • Liability Coverage: This part of your policy covers costs if you cause bodily injury to another person or property damage. This could include legal fees, medical bills, and replacement costs. Most homeowners insurance providers recommend purchasing $300,000 worth of this type of protection.
  • Coverage for Medical Payments to Others: If a guest is injured in your home, your provider will cover some of their medical bills. The standard coverage amount is $1,000 per person. If you have a deductible that’s $1,000 or higher, it may not be worth it to file a claim because your insurance provider will pay a lower amount for medical bills than you would pay for the deductible, and you would have a claim on your record for five to seven years.

How Much Does a High-Risk Homeowners Insurance Policy Cost?

Most companies don’t advertise the cost of a high-risk policy. Factors that make your home high-risk, like living in an area with a high susceptibility to crime or having a low credit score, will increase your premium, causing you to pay more than $101 per month.

On average, homeowners with low credit scores pay 122% more for their home insurance policy than homeowners with high credit scores.

How To Buy High-Risk Homeowners Insurance

Buying high-risk homeowners insurance is more complicated than buying a standard home insurance policy.

If Allstate, Liberty Mutual, or State Farm won’t insure you, consider these tips to find a high-risk policy:

  • Talk to Neighbors: If your home is located in an area with a lot of crime or in an area susceptible to natural disasters, your neighbors may also be classified as high risk. Talk to them to find out how they got an insurance policy.
  • Talk to a Realtor: Talking to the realtor who helped you buy a home is another option, as they have experience selling homes in the area and will likely have home insurance recommendations.
  • Find an Insurance Agent: If you’re still having trouble finding an insurance company, you can find an independent agent to help you get a policy. These agents have an in-depth understanding of the insurance industry and may be able to find a national or local insurance company that’s willing to insure your home.

What Happens if I Can’t Find High-Risk Homeowners Insurance?

If all else fails, you have one more option—a Fair Access to Insurance Requirements (FAIR) plan. This plan is considered a last resort after being denied coverage from several private insurance companies.

Many states, especially ones with high crime rates or susceptibility to natural disasters, have a FAIR program that’s subsidized by taxpayers and private insurers. With one of these plans, several sources carry your risk instead of just one insurance company.

High-Risk Homeowners Insurance FAQs

Why would a homeowners insurance company drop you?

Here are a few reasons you may lose coverage in the middle of your contract term:

  • You File Too Many Claims: If you file more than one claim in a year, your company may stop coverage.
  • Your Home Needs Repairs: If your home is in poor condition, the company may classify your home as too risky to insure. An example of this would be if your roof is old and in need of repairs.
  • Missed or Late Payments: If you continuously miss payments or pay late, your company will no longer trust you to pay your premiums.
  • Criminal Record or False Declarations: If you’re arrested for a crime or you made false declarations about your insurance history and your provider finds out, your policy could be canceled.
  • Change in a Situation: If you move or your situation changes in some other way, your company may cancel your policy because it no longer fits the situation you purchased a policy for.

Can you get homeowners insurance with a bad roof?

It can be difficult to get an insurance policy for a home with a roof that’s more than 20 years old. Older roofs are more likely to cause leaks, which could damage your home’s infrastructure and lead you to file a claim with the insurance company.

To avoid having to foot the bill for damage caused by an old roof, home insurance companies often ask about the age and condition of your roof during the quote process to weed out homeowners that haven’t properly maintained it.

Read more: Basics of Home Warranty Roof Leak Coverage

How long does a claim stay on your record?

Every time you file a claim, your insurance provider reports it to one of two claims databases—Comprehensive Loss Underwriting Exchange (CLUE) or Automated Property Loss Underwriting System (A-PLUS). This allows your current insurance company and future ones to see your claims history from the past five to seven years.

How many home insurance claims are too many?

Having more than two claims in a five-year period may make it difficult to find coverage from a new home insurance company. If you want to stick with your current provider, don’t file more than one claim during your one-year contract.

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.