Here are a few factors that can make a homeowner considered high risk.
Zip Code/Area: Location is a massive indicator of risk. For example, a home in Florida may have a higher risk due to hurricane frequency, which will affect your home insurance rates. Or, if you live in the western United States, you may experience wildfires or earthquakes.
The number of claims: If you have a history of a high number of insurance claims, rather than your home, you are deemed riskier to insure.
Structural Problems: If you have an older home, the roof or foundation may be weaker that needs repairs. These homes have higher insurance claims.
Low Credit Score: To an insurer, this can indicate you may not be responsible. It is essential to pay your bills on time and stay financially accountable.
Aggressive pets: These pets are seen as a risk for a possible cause for property damage and are factored in your homeowner profile. Vacancy: Despite being a vacation home or a second home, if you are not in the house often, you may not be able to spot damage and keep tabs on structural issues, which leads to higher risk.
If you read this and say yes to any of the factors that deem you “high-risk,” you have options. There are insurance companies that specialize in profiles that are considered “high-risk or you may look into your state’s Fair Access to Insurance Plan (FAIR), which is insurance offered to homeowners who’ve been repeatedly turned down for coverage. Read on to learn more about the different ways to obtain high-risk homeowners insurance
and get a policy that works for you.