Most homeowners think coverage is automatic. But high-risk home insurance doesn’t work that way. Insurance companies take their time—and your situation—seriously before they agree to provide coverage.
What Does “High Risk” Actually Mean?
You’re labelled high risk when insurance companies see red flags. That might be the age of your home, its location, or your own insurance history. Even a poor credit score affects your risk profile.
Living in a rural area, having older plumbing systems, or owning a vacant home puts you under a spotlight. Missed payments, multiple claims, or a previous total loss could put your name on a list many home insurers avoid.
Why Insurance Costs Jump
Once you’re considered high risk, expect higher home insurance costs. Insurance companies don’t like surprises. A short period of vacancy, storm damage, or even dead trees on your property all raise red flags.
Home insurance premiums reflect those risks. Older homes with shaky wiring or outdated water systems increase the chance of insurance claims. The more claims expected, the higher the premiums.
If you’ve filed several claims or had a gap in your payment history, you’ll see fewer coverage options—and less affordable rates.
What Gets You Flagged?
A home becomes a risk home for many reasons. Vacant dwellings, vacation homes, or houses left empty for months stand out to insurers. Thieves and water damage don’t take breaks, even when the house is empty.
Dead trees or other objects that threaten the structure count, too. You might need to prove you’ve removed hazards or made repairs before a company offers any type of property insurance.
Poor home maintenance, unpaid mortgages, or a record of non payment often limit who will even consider your application.
What Insurance Companies Check
Home insurance isn’t only about the house—it’s also about you. Late payments, unpaid premiums, and frequent insurance claims build a reputation that follows you across different companies.
Many insurance companies share data. If one denied you coverage, the next one might do the same. A high risk label sticks around longer than you think.
Some insurers might still offer a homeowners policy, but with limited coverage options and much higher insurance premiums.
How to Reduce Your Risk
Start by making your home safer. Remove dead trees, update old systems, and get a broker to compare different companies. Even small steps improve your risk profile.
If you’ve had missed payments in the past, stick to a clean payment history moving forward. Fewer claims also help. Think twice before filing for small issues—your history matters more than the payout.
Talk to a broker who understands high risk insurance. You need someone who knows where to look and which insurers provide coverage in difficult situations.
Vacant Home Insurance Options
Owning a vacant home is tricky. Most standard home insurance policies exclude vacant dwellings. You’ll need special coverage or a policy designed for that situation.
Vacant home insurance covers problems that happen while the house sits empty. Fire, vandalism, and weather damage don’t wait until someone moves in. Without proper coverage, a simple issue turns into a financial disaster.
Some companies offer short-term coverage while you sell or renovate. Others focus on long-term solutions. Either way, you’ll need to ask the right questions.
When Coverage Gets Denied
Getting denied doesn’t mean you’re out of options. It means the big players don’t want the risk—but smaller insurers might take a second look.
There are insurance solutions out there, but they take more work to find. That’s why working with an experienced broker is smart. They know which companies offer high risk home insurance and what you need to qualify.
Paying extra for coverage now could save you far more down the line. Without it, your most valuable asset stays exposed.
How to Keep Costs Down
Want to lower premiums? Show insurers you’re serious. Install alarms. Fix leaks. Update your plumbing. Some insurers give discounts for those upgrades.
Also, avoid making too many small claims. Every claim adds to your history. The fewer you file, the easier it is to negotiate better home insurance premiums.
Ask about bundling. Some companies offer lower rates when you insure your car and home together. Others may offer a discount if you’ve been claims-free for a certain time.
Most people don’t realize how fast things will shift with insurance. High-risk home insurance becomes your only choice once your history or property type makes standard insurance unavailable. If you want better options, it starts with action—and a good understanding of what insurers look for.
The Takeaway
Owning a home that falls into the high-risk category comes with added pressure and higher costs. High-risk home insurance provides a way to protect your property despite the increased likelihood of claims or damage. Finding the right coverage means understanding your risks, addressing issues directly, and working with someone who knows how to handle unique challenges.
Frequently Asked Questions
What kind of insurance coverage do high-risk homes require?
High-risk homes often need specialized insurance coverage tailored to the property’s condition, history, or location.
Why do high-risk homes face increased likelihood of damage?
Factors like outdated systems, vacancy, or storm-prone areas raise the chance of problems.
How do I find the right coverage for a home labelled high risk?
Working with a broker or insurer that handles unique challenges helps match you with the right coverage.
Can a high-risk home still qualify for comprehensive coverage?
Yes, but it depends on the insurer, your claim history, and how well the property is maintained.
