5 Best High-Risk Homeowners Insurance Companies In 2024

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Updated: 15 March 2024
Written by
Bob Phillips
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Over my 15 years in the insurance industry, I’ve seen just about everything – from the straightforward to the complex. One area I’m experienced in is homeowners insurance. Having owned and insured a home in Florida, I know how overwhelming it can feel, especially when you’re labeled ‘high-risk’ and are searching for the right coverage.

I’ve been there, and I’ve guided many families through the challenge of finding the best coverage. You’re in the right place to get the real scoop on high-risk homeowners insurance. Let’s make sure you have the knowledge and confidence to make the best decisions.

What Makes A Home High-Risk?

There are several factors that can affect a home’s risk rating and put it in the “high-risk” category:

Homeowner-Related Factors

At times, the risk stems from the homeowner’s personal history rather than the property itself. A homeowner with multiple claims on previous insurance policies can be flagged as high-risk. This is because a history of frequent claims might indicate potential future claims on your homeowners insurance policy. Additionally, if the homeowner has a poor credit score, some insurance companies might perceive this as an indicator of financial irresponsibility, which could translate to lapses in home maintenance or increased risk of default on policy premiums.

Property-Specific Factors

The condition and age of the home play crucial roles in its risk assessment. Older homes, especially those not updated to current building codes, can be more susceptible to damage. Issues like outdated electrical systems, old plumbing, or a worn-out roof can increase the chances of potential claims. Furthermore, if the home has specific high-risk features such as a swimming pool or a trampoline, it may be deemed more hazardous, leading to a higher insurance premium.

Location-Based Factors

Where a home is located can significantly influence its risk profile. Properties situated in areas prone to natural disasters, such as flood zones, earthquake hotspots, or regions with a high likelihood of hurricanes, will often be categorized as high-risk. Additionally, homes in neighborhoods with high crime rates, frequent vandalism, or burglaries might also face higher insurance premiums due to the increased risk of property damage or theft.

Best High-Risk Homeowners Insurance, 2024

Comparison Of The Best High-Risk Homeowners Insurance

Overall Rating Best For A.M Best Rating J.D Power Rating Average Annual Cost Get A Quote
State Farm
4.9

Best Overall

A+

829

$1,935

Instant Quote
Allstate
4.8

Best Overall Runner-Up

A++

815

$2,053

Instant Quote
Nationwide
4.7

Natural Disaster Zones

A++

816

$2,665

Instant Quote
Chubb
4.7

High-Value Homes

A++

809

$2,340

Instant Quote
Progressive
4.6

Older Homes

A+

801

$1,776

Instant Quote
Scroll to see comparisons

Our Methodology

To determine the best high-risk home insurance companies, I relied on objective data from rating services AM Best (financial strength) and J.D. Powers (customer satisfaction). In addition, I took into account feedback from various consumer sites and my personal experience as a former licensed property and casualty agent who sold property and casualty insurance in the high-risk State of Florida.

45

Quotes Analyzed

17

Brands Reviewed

15+

Years Of Experience

30+

Research Hours

Top 5 High-Risk Homeowners Insurance Companies


Best Overall

Overall Rating
4.9

Key Statistics

9/10 Affordability
10/10 Customer Satisfaction
9/10 Claims
9/10 Coverage Level

Why We Like Them

Whether it’s coverage for older homes, properties in disaster-prone areas, or homes with specific high-risk features, State Farm’s policies are designed to provide maximum protection without compromising on affordability.

One of the standout features of State Farm is its exceptional customer service. High-risk homeowners often have more questions and concerns than the average policyholder, and State Farm’s agents are trained to address these with clarity and compassion.

When it comes to claims, the process is streamlined and transparent. State Farm’s swift claims handling is especially crucial for high-risk homeowners who might face more frequent or severe property damages. Their commitment to assisting policyholders during tough times has garnered them significant trust and loyalty from their customer base.

State Farm continually invests in innovative tools to enhance the customer experience. Their online platform and mobile app offer policyholders easy access to their policy details, claims status, and premium payment options. For high-risk homeowners, this ease of access can be a game-changer, especially during emergencies.

Benefits & Drawbacks

Benefits
  • Comprehensive coverage options
  • Exceptional customer service
  • Swift claims processing
Drawbacks
  • Limited discount opportunities
  • Potentially higher premiums upon renewal
  • Coverage can vary by state or region

Best Overall Runner-Up

Overall Rating
4.8

Key Statistics

9/10 Affordability
8/10 Customer Satisfaction
9/10 Claims
9/10 Coverage Level

Why We Like Them

Allstate stands out for its ability to offer customizable coverage options tailored to high-risk homes. Whether it’s due to the location, age of the property, or other unique risk factors, Allstate has shown a commitment to understanding and accommodating the distinct needs of high-risk homeowners. This flexibility means homeowners can get a policy that precisely addresses their concerns without paying for unnecessary extras.

Allstate is also a leader with its innovative online tools and mobile app functionalities. These resources are invaluable for high-risk homeowners who might need to regularly check on their policy details, file a claim, or even get real-time updates on potential risks in their area.

For homeowners who find themselves in the precarious position of being labeled high-risk, the claims process’s efficiency and transparency become paramount. Allstate has consistently received praise for its Claims Satisfaction Guarantee, ensuring that the claims process is as smooth and hassle-free as possible.

Benefits & Drawbacks

Benefits
  • Comprehensive coverage customization
  • Innovative digital tools and resources
  • Strong emphasis on claims satisfaction
Drawbacks
  • Premiums often increase upon policy renewal
  • Limited local agent availability in some areas
  • Fewer niche discounts for higher-risk categories

Best For Natural Disaster Zones

Overall Rating
4.7

Key Statistics

9/10 Affordability
8/10 Customer Satisfaction
8/10 Claims
9/10 Coverage Level

Why We Like Them

Nationwide has built a reputation for offering robust coverage options tailored to homes in natural disaster zones. Recognizing the unique challenges faced by homeowners in these regions, the company has developed policies that comprehensively address damages from floods, earthquakes, hurricanes, and more.

One of the standout features of Nationwide is their “On Your Side” review. This is an annual consultation where agents work closely with homeowners to evaluate and adjust their policies. For those living in natural disaster zones, this review is invaluable. As environmental conditions and risk factors change, it’s crucial to ensure that insurance policies evolve accordingly.

Understanding the importance of proactive risk management, Nationwide offers specialized loss mitigation programs for those in natural disaster zones. These programs provide homeowners with resources, guidance, and even potential discounts for implementing measures that reduce the risk of damage from natural disasters.

Benefits & Drawbacks

Benefits
  • Robust natural disaster coverage
  • “Your Side” annual policy review
  • Specialized loss mitigation programs
Drawbacks
  • Limited coverage in some high-risk areas
  • Slower claims processing during peak disaster seasons
  • Higher deductibles for certain disasters

Best For High-Value Homes In High-Risk Areas

Overall Rating
4.7

Key Statistics

8/10 Affordability
10/10 Customer Satisfaction
9/10 Claims
10/10 Coverage Level

Why We Like Them

Chubb is renowned for its specialized insurance solutions tailored to high-value homes, including those in high-risk areas. Their Masterpiece policy, for instance, is designed with affluent homeowners in mind, offering extensive coverage limits and protection against various risks. This means that owners of luxury properties, historical homes, or those with unique architectural features can be assured of a policy that comprehensively addresses the value and uniqueness of their residence.

When it comes to claims, Chubb’s reputation is stellar.. For high-value homeowners, the aftermath of a disaster can be especially daunting given the often irreplaceable value of their assets. Chubb’s claims service is known for its promptness, transparency, and dedication to restoring or replacing items to their original state or value.

Owning a high-value home often comes with unique challenges and risks. Recognizing this, Chubb offers its clients access to risk consultants who provide insights and recommendations tailored to the specific needs of luxury properties.

Benefits & Drawbacks

Benefits
  • Specialized coverage for high-value homes
  • Exceptional claims service
  • Access to Risk Consultants
Drawbacks
  • Higher premiums compared to standard policies
  • Not suitable for average or lower-value homes
  • Limited local agent presence in some areas

Best For High-Risk Older Homes

Overall Rating
4.6

Key Statistics

8/10 Affordability
7/10 Customer Satisfaction
8/10 Claims
9/10 Coverage Level

Why We Like Them

Progressive recognizes the intrinsic value and unique challenges associated with insuring older homes. Many older properties, particularly those classified as high-value, often come with architectural details and craftsmanship that aren’t found in newer homes. Progressive offers policies that ensure these distinctive features are adequately covered, allowing homeowners to restore their property to its original state in the event of damage or loss.

Progressive often partners with specialty insurers to provide tailored policies for specific needs. This means that if you have an older high-value home that requires a particular type of coverage not typically offered in standard policies, Progressive can connect you with an insurer who specializes in that area. This collaboration ensures that the unique needs of older high-value homes are addressed.

One of the notable advantages of opting for Progressive is the array of discounts they offer. For older high-value homes, maintenance and upkeep can be costly. Progressive’s bundling options, such as combining home and auto insurance, can lead to significant savings.

Benefits & Drawbacks

Benefits
  • Tailored coverage for older homes
  • Partnerships with specialty insurers
  • Discounts and bundling options reduce premiums
Drawbacks
  • Might not cover all older-home specific issues
  • Rates can vary based on home’s age and condition
  • Limited coverage for very historic homes

What States Are Considered High-Risk?

These states are commonly considered “high-risk” by homeowners insurance companies:

  • Florida: Due to its susceptibility to hurricanes, tropical storms, and flooding, Florida is a top high-risk state. The state’s coastal location exposes it to severe weather events, leading to higher homeowners insurance premiums.
  • Texas: The Lone Star State faces a variety of natural disasters, including hurricanes along the Gulf Coast, tornadoes in the plains, and hailstorms. Additionally, parts of Texas experience flooding and wildfires.
  • California: Earthquakes are the primary concern, but California also deals with wildfires, especially in areas with dry vegetation. Coastal areas can also be at risk for flooding.
  • Louisiana: Similar to Florida, Louisiana is prone to hurricanes and flooding, especially in the delta region. Its low-lying topography makes it particularly vulnerable.
  • Oklahoma: Tornadoes are a significant concern in Oklahoma, given its location in “Tornado Alley.” Hailstorms and severe thunderstorms are also frequent occurrences.
  • South Carolina: Coastal areas of South Carolina are vulnerable to hurricanes and tropical storms. Flooding can also be an issue, especially in low-lying areas.
  • Mississippi: Like its neighbors, Mississippi faces threats from Gulf Coast hurricanes. Flooding and storm surges are common concerns.
  • Alabama: Situated on the Gulf Coast, Alabama is exposed to hurricanes, tropical storms, and the associated risks of flooding and wind damage.
  • Missouri: Located in the Midwest, Missouri is another state that falls within “Tornado Alley,” making it a high-risk area for tornado-related damages.
  • Alaska: Due to its unique challenges, including extreme cold and the potential for earthquakes and tsunamis, Alaska can be considered high-risk.

How To Get High-Risk Home Insurance

Whether your home is located in a natural disaster-prone area, is of high value, or you’ve had previous claims that have labeled you a high-risk, it’s essential to know the steps to secure the right coverage. Here’s a simplified five-step guide to help you obtain high-risk home insurance:

  1. Understand Your Risk: Before diving into the search, identify the reasons you might be considered high-risk. This could be due to the location of your home, its age, its value, or even your personal claim history. Understanding your specific risk will help you pinpoint the coverage you need.
  2. Shop Around: Don’t settle for the first quote you receive. Different homeowners insurance companies accept different risks. Some might specialize in high-risk homes or offer discounts that others don’t. By getting multiple quotes, you can find the best homeowners coverage at the most competitive price.
  3. Work with a Specialized Agent: Consider partnering with an insurance agent who specializes in high-risk properties. They’ll have a deeper understanding of the challenges you face and the insurers most likely to offer favorable terms.
  4. Consider a Surplus or Excess Line Insurer: If standard insurers deny you, look into surplus or excess line insurers. These companies specialize in risks that standard insurers won’t cover. Just be aware that they’re not backed by state guaranty funds, so it’s crucial to choose a reputable company.
  5. Review and Adjust Annually: As with any insurance policy, it’s essential to review your high-risk homeowners insurance annually. Your risk level might change, or there might be new discounts available. Regular reviews ensure you always have the best coverage at the best price.

What Is A FAIR Plan For High-Risk Insurance?

The FAIR Plan, which stands for “Fair Access to Insurance Requirements,” is a safety net for homeowners who find it challenging to obtain standard homeowners insurance due to their property being deemed high-risk. Often, homes in areas prone to natural disasters or those in urban locales with a higher likelihood of theft or vandalism might be denied traditional coverage.

In such situations, the FAIR Plan comes into play, offering a basic form of property insurance to ensure that homeowners aren’t left without any protection.

Established in the 1960s, the FAIR Plan was a response to the urban riots that led many insurance companies to deny coverage to city homeowners. Each state’s FAIR Plan operates a bit differently, but in essence, they all provide a shared market plan where private insurers pool together to offer coverage to high-risk properties.

FAIR Plans are typically considered the insurer of last resort. This means you should exhaust all other options before resorting to a FAIR Plan, as the coverage might be limited and possibly more expensive than conventional policies.

While FAIR Plans ensure that every homeowner has access to insurance, they are not a replacement for standard homeowners insurance. They often provide more limited coverage, and homeowners might need to purchase additional policies to be fully protected.

How To Get FAIR Insurance Coverage

State Plan Phone Number
Alabama FAIR Plan 334-943-4029
California FAIR Plan 213-487-0111
Connecticut FAIR Plan 860-528-9546
Delaware FAIR Plan 215-629-8800
Florida Citizens Insurance 850-513-3700
Georgia FAIR Plan 770-923-7431
Hawaii FAIR Plan 808-585-3524
Illinois FAIR Plan 312-861-0385
Indiana FAIR Plan 317-264-2310
Iowa FAIR Plan 515-255-9531
Kansas FAIR Plan 785-271-2300
Kentucky FAIR Plan 502-425-9998
Louisiana Citizens Insurance 504-831-6930
Maryland FAIR Plan 410-539-6808
Massachusetts FAIR Plan 617-723-3800
Michigan FAIR Plan 313-877-7400
Minnesota FAIR Plan 612-338-7584
Mississippi FAIR Plan 601-981-2915
Missouri FAIR Plan 314-421-0170
New Jersey FAIR Plan 973-622-3838
New Mexico FAIR Plan 505-878-9563
New York FAIR Plan 212-208-9700
North Carolina FAIR Plan 919-821-1299
Ohio FAIR Plan 614-839-6446
Oregon FAIR Plan 503-643-5448
Pennsylvania FAIR Plan 215-629-8800
Rhode Island FAIR Plan 617-723-3800
South Carolina Wind & Hail Plan 803-737-6180
Texas FAIR Plan 512-899-4900
Texas Windstorm Plan 512-899-4900
Virginia FAIR Plan 804-358-0416
Washington FAIR Plan 425-745-9808
Washington, D.C., FAIR Plan 202-393-4640
West Virginia FAIR Plan 215-629-8800
Wisconsin FAIR Plan 414-291-5353

Remember, the specific structure and regulations of FAIR plans can vary by state. Always consult with your local insurance department for the most accurate and up-to-date information.

How Much Does High-Risk Homeowners Insurance Cost?

High-risk homeowners insurance typically comes at a premium compared to standard policies due to the elevated risks involved. On average, you can expect to pay anywhere from 20% to 200% more for high-risk coverage, depending on the specific factors making your home high-risk.

For instance, if you live in an area frequently hit by natural disasters like hurricanes or wildfires, your premiums might be on the higher end of that spectrum. On the other hand, if you have a single previous claim, you might see a more moderate increase.

For example, let’s say the average standard homeowner’s insurance policy in a particular state costs $1,000 annually. A homeowner in a high-risk flood zone in that state might see their premium jump to $2,500 or more due to the increased likelihood of flood damage. Similarly, a homeowner with a history of multiple claims in a short period might find their rates increased to $1,500 or $2,000 annually, even if their home isn’t in a disaster-prone area.

What Does High-Risk Home Insurance Cover?

High-risk home insurance, while tailored to homes and homeowners considered a higher risk by insurance companies, provides coverage that’s fundamentally similar to standard home insurance policies. Here’s a breakdown:

Dwelling Coverage: Just like standard policies, high-risk insurance covers the physical structure of the home – the walls, roof, floors, and built-in appliances. If a covered peril, like fire or wind, damages the home, this portion of the policy helps with the repair or replacement costs.

Personal Property: High-risk policies also provide protection for the homeowner’s belongings, whether they’re in the home, garage, or even temporarily off-premises. This includes furniture, electronics, clothing, and more. If these items are stolen or damaged by a covered event, the insurance can help replace them.

Liability Protection: Accidents happen, and if someone gets injured on the property, or if the homeowner unintentionally causes injury or property damage to someone else, the liability portion of the high-risk policy provides coverage. This is akin to liability protection in standard policies and can cover legal fees and medical bills.

Additional Living Expenses: If a covered peril makes the home uninhabitable, high-risk insurance can help with the extra costs associated with living elsewhere temporarily, such as hotel bills and additional food expenses.

While the core coverages are similar, it’s essential to note that high-risk home insurance might come with higher deductibles, certain exclusions, or specific conditions, given the increased risk associated with the policy.

FAQs

What does a FAIR plan cover?

FAIR plans offer basic property insurance, covering damages from specific perils like fires, windstorms, or vandalism, especially in high-risk areas where standard policies may be unavailable.

Who is considered high-risk in homeowner insurance?

High-risk homeowners typically have multiple claims history, own older or high-value homes, or live in areas prone to natural disasters or high crime rates.

Can you be denied homeowners insurance?

Yes, insurance companies can deny coverage based on a home’s condition, location, the homeowner’s claims history, or other risk-related factors.

Sources

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