Can insurance be obtained for homes in high risk areas?

About high-risk homeowners coverage

When it comes to homes that are located in high-risk areas, it may be difficult for homeowners to receive a homeowners policy. Homes can be considered “high risk” for a variety of reasons.

One common example of a high-risk home is one with older systems, such as plumbing, electrical, or heating, that haven’t been updated in many years and could potentially cause problems.

Another reason why many homes are considered high risk is their location: because they are subject to severe weather like hurricanes or tornadoes, or if they are in a high-crime area.

If insurance companies turn down coverage for a home, homeowners can still get a home insurance quote. If the issue is the condition of the home, homeowners should talk to an insurance professional who already insures a car or former home, for advice.

If the issue is the location of the home, homeowners should talk to neighbors to find out who insures their homes. In either case, a call to the state insurance department can also help identify insurers who work in the area.

If no one will insure the property, some states have shared market insurance plans. Fair Access to Insurance Requirements (FAIR) plans are usually more expensive than equivalent coverage in another area, but may be the only option for some homeowners. Beach and Windstorm plans are like FAIR plans for residents of seven states that border the Atlantic and the Gulf of Mexico.