Shopping for a standard homeowners insurance policy can be complicated, but it gets trickier when insurers categorize you or your property as high risk. Your home can be saddled with a high-risk designation for any number of reasons, but it will almost always result in higher premiums. Some insurers may deny you coverage altogether.
We at the MarketWatch Guides Home Team have analyzed the best homeowners insurance companies around the country and identified the ones that are most likely to treat you and your home fairly. Our experts have also provided some tips on what to do if insurers label your home as high risk.
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Who Needs High-Risk Home Insurance?
A home can be considered high-risk if it has structural issues, is in disrepair or is in a location with a high crime rate or is prone to natural disasters. Insurers will also consider a homeowner high risk if they have a history of filing liability claims — claims in which the insurer pays for damages the covered individual caused to someone else or their property.
Older homes, dangerous dog breeds and low credit scores are some other factors that may deem your home insurance policy high-risk. Check out our breakdown below.
Homeowner
- Owning dog breeds considered aggressive
- Having a criminal record
- Having an excessive claims history
- Running a home-based businesses
- Having a low credit score
Property
- Being located in an area with frequent crime or extreme weather
- Frequent vacancy, such as a vacation home
- Older build
- Roof older than 20 years
- Structural issues
Top 5 High-Risk Homeowners Insurance Companies of 2024
We examined coverage add-ons, geographical availability and discounts to offset expensive high-risk premiums when ranking our top five companies. After in-depth research, the following insurers emerged as the best ones to start with when shopping for a high-risk homeowners insurance quote:
- Allstate: Our top pick
- Liberty Mutual: Best for finished basem*nts
- State Farm: Best for value
- USAA: Best for military members and veterans
- Travelers: Best claim experience
Allstate
Best for discounts
4.5
Cost: 4.6/5
Customer Experience: 4.3/5
Industry Standing: 4.3/5
Coverage: 4.6/5
Our Review
A.M. BestA+J.D. Power809/1000Annual Cost$2,027
Company Overview
Over the past 90 years, Allstate has earned a Superior financial strength rating from AM Best and has become a stable insurer with the spending power to pay out claims from high-risk customers. Competitive coverage options include a wide range of deductibles and impressive discounts for bundling home and auto policies.
Allstate’s nationwide availability increases the probability of coverage in areas affected by extreme weather or natural disasters. Policyholders can then add endorsem*nts for things like their yard and garden, musical instruments, sports equipment, luxury goods and business properties. Allstate also offers comprehensive flood coverage through its subsidiary, National General Insurance, with higher limits than the Federal Emergency Management Agency (FEMA)-backed NFIP.
Pros and Cons
Pros Coverage in all 50 states and Washington, D.C. Discount for bundling policies Premium stability with Claim RateGuard Cons Higher-than-average prices State-dependent online quote availability
Why We Chose Allstate
Allstate is an excellent option for flood insurance and unique endorsem*nts that protect your valuables, yard and roof. Additionally, Allstate’s Claim RateGuard feature ensures your premium will remain the same after the first claim you file every five years. You can contact an Allstate insurance agent to evaluate your coverage options.
*A.M. Best ratings accurate as of July 2024
Liberty Mutual
Best for finished basem*nts
4.4
Cost: 4.4/5
Customer Experience: 4.7/5
Industry Standing: 4/5
Coverage: 4.6/5
Our Review
A.M. BestAJ.D. Power789/1000Annual CostN/A
Company Overview
Liberty Mutual is our pick for ways to save — you can qualify for up to 10 discounts to reduce your high-risk home insurance policy’s expensive premium. The insurer will reward you for having a new roof, bundling your home and auto policies, purchasing your insurance policy online and more.
While Liberty Mutual doesn’t offer as many add-ons as competitors, its optional earthquake or hurricane coverage can protect homes in high-risk areas that frequently experience extreme weather or natural disasters. Likewise, blanket jewelry coverage is useful for property owners in areas with high crime rates.
Pros and Cons
Pros Availability in all 50 states and Washington, D.C. Hurricane and earthquake endorsem*nts available Steep discount for bundling home and auto Cons Average customer satisfaction ratings Fewer add-on options than other insurers
Why We Chose Liberty Mutual
Liberty Mutual is one of the best high-risk home insurance companies because of its national coverage area, add-on coverage for hurricane and earthquake damage, and various discounts to offset steep high-risk coverage premiums. It’s also the third-largest U.S. home insurer based on market share, providing a solid foundation for assuming risks that smaller companies may not cover.
State Farm
Best for Value
4.7
Cost: 4.6/5
Customer Experience: 4.9/5
Industry Standing: 4.2/5
Coverage: 5/5
Our Review
A.M. BestBJ.D. Power829/1000Annual Cost$2,200
Company Overview
With a Superior rating from AM Best and an 835 consumer satisfaction score from J.D. Power, State Farm is a popular choice for home andrenters insurance, plus auto and property insurance. Its industry-leading financial strength allows it to take on more risk. Further, its online tools and straightforward quote process help first-time homeowners find a policy that matches their unique risks.
State Farm uses a network of local exclusive agents to issue and service policies, so you can work with a knowledgeable professional to determine whether the insurer can cover your high-risk property. Talk to them to find out which standard home insurance coverages might be excluded and which additional coverages you might need. If your house can’t be covered through State Farm, your agent may at least provide valuable insight you can use as you continue shopping.
Pros and Cons
Pros Availability in all 50 states Largest U.S. home insurer by market share Extensive online resources to help you understand your coverage needs Online quote tool that features a home value estimator Cons Fewer discounts than some competitors
Why We Chose State Farm
State Farm has a user-friendly website and library of resources to help beginners understand complex insurance concepts, such as what qualifies as a risk. An established network of agents adds a personal touch to the buying process and provides homeowners with a human resource to negotiate coverage options. Agents can also advise customers on reducing their risk if they are denied coverage.
USAA
Best for military members and veterans
4.6
Cost: 4.6/5
Customer Experience: 4.6/5
Industry Standing: 4.3/5
Coverage: 5/5
Our Review
A.M. BestA++J.D. Power881/1000Annual Cost$2,029
Company Overview
USAA is ourtop insurance option for military members and veterans. It bolsters competitive coverage with perks such as financial services, retail and rental car discounts, and a unique endorsem*nt for military uniform coverage. Policyholders agree — USAA has a J.D. Power customer satisfaction rating of 893 out of 1,000, the highest score on this list.
USAA’s earthquake protection and home-sharing coverages can assist high-risk homeowners, but there’s a catch. Home sharing isn’t available in all states, and earthquake coverage is only available in Oregon and Washington. If you need flood coverage, USAA can help you obtain it through the National Flood Insurance Program (NFIP).
Still, USAA makes up ground with personal property protection that covers contents valued at $200 or more, such as jewelry, smart watches, guns, cameras and musical instruments. There is no deductible, and personal belongings are covered at today’s replacement cost without depreciation.
Pros and Cons
Pros Availability in all 50 states and Washington, D.C. Numerous member benefits Personal property protection without depreciation Cons Limited natural disaster protection Coverage restricted to the military community
Why We Chose USAA
While this company only insures active-duty military, veterans and qualifying family members, there’s a lot to like when it comes to high-risk coverage. Natural disaster coverage and personal property coverage with no deductible or depreciation offer the protection that high-risk homeowners need. Plus, members can use USAA’s online risk assessment tool to review a property before purchasing it and avoid a high-risk situation altogether.
Travelers
Best claim experience
4.5
Cost: 4.5/5
Customer Experience: 4.9/5
Industry Standing: 4.3/5
Coverage: 4.4/5
A.M. BestA++J.D. Power790/1000Annual Cost$5,079
Company Overview
Travelers is one of the financially strongest insurance companies on the market. Its 30,000 employees and 13,500 independent agents draw on more than 165 years of industry knowledge to help you find a policy tailored to your particular risk factors.
In addition to personal property and personal liability coverage, higher-risk customers can benefit from a protective device discount when they proactively mitigate property crime risk. For example, installing smoke detectors, fire alarms, home security systems and smart-home technology that alerts you when a fire or burglary occurs could improve your chances of obtaining coverage in a high-risk area.
Travelers offers a competitive deductible program. Each year, Travelers rewards policyholders with a stackable $100 credit that will apply toward your deductible in the event of a loss. The package also prevents a rate increase related to your first loss in a five-year period.
Pros and Cons
Pros Coverage availability in high-crime areas Free home history report via OpenHouse Innovative deductible program Cons Three policies required for a multi-policy discount Does not offer flood or earthquake coverage
Why We Chose Travelers
In addition to deductible options and financial strength, Travelers offers OpenHouse. This online tool provides a property’s repair history, neighborhood trends and tips to help you avoid risk in the first place. You can find information on any property’s condition, age, the estimated cost for updates and additional factors that could impact how insurers assess its risk.
How Much Does High-Risk Homeowners Insurance Cost?
High-risk policyholders are more likely to file a claim, so they pay more for their policies. How much more they pay depends on the risks involved. With everything else being equal, you could pay a different premium if your home is susceptible to wildfire damage than if you have a low credit score and filed a recent home insurance claim.
There are many factors that can cause you to be considered a high-risk homeowner which have different levels of impact on price. Here are some of the common risk factors that result in higher premiums.
The Cost of Home Insurance with a Claims History
Homeowners with a claims history in the past five years can expect to pay around $3,585 per year for home insurance coverage, based on our data from Quadrant Information Services. However, the impact on your premium will depend on the type of claim you have filed. Use the chart below to understand what your average premium might look like based on your claims history.
| Claim Type | National Average with Claim* |
|---|---|
| Wind and Hail | $2,958 |
| Fire and Lightning | $3,334 |
| Water Damage and Freezing | $3,221 |
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The Cost of Home Insurance with Poor Credit
Your credit history can also have a large impact on how much you pay for home insurance in most parts of the country. Only California, Hawaii, Massachusetts and Michigan have outlawed the use of credit ratings as a factor in auto and home insurance premiums.
Based on data collected from Quadrant Information Services, homeowners with poor credit typically pay 2.5 times more than someone with good credit. We found that Amica and Progressive are the widely available insurance providers that offer the lowest premiums to those with poor credit scores.
| Credit Tier | National Average* |
|---|---|
| Poor | $9,855 |
| Good | $2,728 |
| Excellent | $2,007 |
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Using June 2024 data from Quadrant Information Services, we obtained 5 million quotes for each provider in this article across over 15,000 zip codes and compared them to the average annual premium in the U.S. According to this data, the average cost of homeowners insurance is $2,728 annually. Read our full cost methodology below.
For providers unavailable in Quadrantâs database, we calculated the average annual premiums using quotes we manually pulled from the providerâs website or representatives. Quotes include comparable policy details in ZIP codes across the U.S. Your cost may vary depending on your location, coverage and personal property needs.
What Should I Do If I Can’t Get High-Risk Homeowners Coverage?
With so many factors playing into high-risk home insurance, coverage through a private company isn’t guaranteed. Private insurers may deny you if your risk factors are too high. If this happens multiple times, consider a Fair Access to Insurance Requirements (FAIR) Plan as a last resort.
Created in the 1960s, FAIR Plans are state-run entities that provide high-risk coverage that taxpayers and private insurers subsidize, spreading the risk among multiple entities. Coverage and eligibility requirements differ slightly by state, so contact your state insurance department to learn more.
Reasons Companies Deny Home Insurance Coverage
An insurance company might deny you home insurance coverage if it deems you or your home too risky to insure. Denial might be due to risk factors related to you specifically —your claims history, for example —or the condition of your property. Here’s what insurers may consider when deciding whether to extend coverage:
- Location: Homes in high-risk areas, such as coastal areas prone to hurricanes and heavily wooded areas where wildfires are a threat, are riskier to insure.
- Property condition: An insurer could reject your application if you do not maintain your property adequately.
- Property age: Older homes are generally at a higher risk of damage. Properties that are more than 50 years old and are not well maintained might be ineligible for homeowners insurance.
- Credit score: Where legal, insurers may look at your credit history to determine if you’re a high-risk individual. Generally, insurers consider those with low credit scores to be more likely to file claims.
- Claims history: Someone who has filed a homeowners insurance claim in the past is more likely to submit one in the future.
- Criminal record: Homeowners with a criminal record and a history of insurance fraud could find it challenging to get a new policy.
- Misrepresentation: The insurance company may reject your application — or your claim after a covered event — if you provided inaccurate or false information.
Pets: Insurers might deny you coverage for keeping wild animals or certain types of pets. There are some dog breeds not covered by homeowners insurance.
Is High-Risk Homeowners Insurance Worth it?
High-risk homeowners insurance comes with a high price tag, but coverage is still likely to be cheaper than paying outright to repair damage from a covered event. Assuming you’re choosing between high-risk homeowners insurance or being uninsured, consider whether you can afford to pay cash for home repairs that insurance ordinarily covers.
While home insurance is not legally mandatory, your lender may require it when taking out a mortgage. You can choose not to carry a policy once you pay off your mortgage. However, we still recommend having home insurance due to the sheer cost of repairing and replacing your home and belongings out of pocket if you need to.
Tips for Insuring a High-Risk Home
- Get quotes from multiple providers: High-risk policies are often costly, but gathering quotes from a large number of providers can help you explore available options and get the best deal available.
- Work with an independent licensed insurance agent: An insurance agent familiar with your area can help you find ideal options based on your situation and may connect you with specialty insurers.
- Work on lowering your risk profile: You can start by finding out which factors cause the insurers to deem you high-risk. For example, if the insurance company deems your property high-risk because of a pending renovation, you can keep the high-risk homeowners insurance policy until the renovations are complete. Then, opt for a cheaper, standard policy.
- Take advantage of discounts: Many insurers offer discounts to help you lower your insurance costs. For instance, you can bundle your auto and home policy to earn a discount.
The Bottom Line: Which Is the Best High-Risk Homeowners Insurance Provider for You?
High-risk homeowners insurance can be a headache when shopping in the private sector, but it’s still possible to get covered if you know where to look. Each company will handle high-risk situations differently, so we recommend thoroughly shopping all five national providers on this list before turning to local companies or the FAIR plan.
You have a better chance of securing high-risk coverage with our top five picks because of their financial strength, exceptional customer service, widespread availability, unique add-ons and impressive discounts that can help counteract the expensive premiums of high-risk coverage.
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Frequently Asked Questions About High-Risk Homeowners Insurance
High-risk property insurance is a category of homeowners insurance that specifically covers homes or homeowners deemed to have a greater-than-average risk of insuring. This may include scenarios such as homes that are in areas that experience frequent severe natural disasters or policyholders that have made more than a few claims in a short period of time. High-risk property insurance tends to be significantly more expensive than coverage for lower-risk properties.
Your state’s FAIR Plan, if it has one, will provide limited home insurance coverage. It typically features higher premiums and deductibles than standard home insurance rates, but at least you’ll have something in place while fixing the issues that make you uninsurable.
Most FAIR Plans cover losses due to common exposures such as fire, windstorms, hail, theft and vandalism. They typically do not include liability coverage, which is a component of a standard home insurance policy.
It can be surprising what home insurance companies won’t cover in their standard policies. Here are some of the most commonly excluded items:
- Burst pipes
- Construction damage
- Earthquake damage
- Flood damage
- High-risk items, such as a pool diving board or trampoline
- High-value items
- Injuries from restricted dog breeds
- Intentional or illegal acts
- Lack of maintenance
- Mold
- Nuclear accidents
- Pest damage
- Poor construction
- Sewer backups
Yes, you can be turned down for homeowners insurance. Private home insurance companies can decide not to cover a high-risk home. But remember that insurers assess high-risk situations on a case-by-case basis, and some companies may be willing to insure you even if others aren’t. Be tenacious with your shopping, and you may be able to find the right fit. If you are continually denied coverage, look into your state’s FAIR Plan instead.
Some items you may want to cover with your homeowners policy may also be considered high risk. These tend to include expensive items that can be easily damaged or stolen like smartphones, computers, high-end cameras and sporting equipment.
Our Methodology: Our System for Ranking the Best Home Insurance Providers
Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:
- Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
- Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
- Availability and ease of use (25%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
- Brand trust (20%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.
Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best Disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
