How to Get Homeowners Insurance for a High-Risk Home
If you own a home in wildfire-prone areas or coastal regions vulnerable to hurricanes, there’s one thing you’ve probably already heard a lot about: high-risk homeowners insurance.
Typically, insurance companies make coverage more expensive in these areas—or sometimes even impossible to afford—because they are more susceptible to damage.
So, what can you do if you need home insurance?
Here’s the good news: high-risk homeowners insurance is available, and with the right steps, you can secure a policy—and possibly one at a reasonable rate.
Want to know how to get coverage for your high-risk home?
Let’s get started.
What Makes a Home "High Risk"?
Insurance companies determine risk based on several factors, though many of them have to do with location and weather. To name a few:
Home Materials
The type of building materials used to build a home can significantly alter insurance costs.
Typically homes with flammable materials like traditional wood shakes are at greater risk, while fire-resistant building materials like Synthetic CeDUR shakes help lower both the risk, costs, and quality of the home.
Home Structural Design
Certain architectural styles can also make your home more susceptible to damage. For instance, homes with flat roofs, weak foundations, or drainage can increase rates. You can also consider the amount of windows your home has as part of this criteria. The more windows you have, the more likely they are to be damaged.
Past History
Many high risk insurance companies will analyze a home’s previous damage history. The ones that have more damages associated with it, whether intention or not, typically have higher rates and premiums altogether.
Flood Zone
Another factor that can impact a home’s insurance is local bodies of water. If these bodies of water are able to flood surrounding areas, insurance companies may not be as willing to cover a home.
Old or Deteriorating Structures
Although home features such as electrical systems and aging roofs can almost always be renovated, insurance companies often do not want to insure any home that is already damaged. The reason why has to do with the fact that these homes are more likely to have fire, leaks, and structural damage.
High Crime Rates
One of the most underestimated reasons a home requires high-risk insurance rates is the surrounding neighborhood. If the neighborhood is prone to frequent burglaries, vandalism, or crime, your home is also more likely a culprit for increased damages. The result? A high insurance rate.
If your home falls into one of the categories above, you may need to take some additional steps. Here are a few additional measures you can take to find high-risk home insurance:
Find The Best Insurance Companies
Not all insurance companies handle high-risk properties the same way, which means you need to explore how each company handles your property.
In other words, do your research and reach out to several companies, especially if they are willing to give you a free estimate.
However, you should note that some insurance companies specialize in providing coverage for homes in difficult areas. These are the companies that you want to reach out to the most—and who you want to insure your home.
Consider Insurance Programs
If you have trouble finding coverage, you could also look for Fair Access to Insurance Requirements (FAIR) plans.
FAIR plans are insurance programs that are typically backed by the state and provide coverage for high-risk properties when private insurers won’t.
However, you should keep in mind that FAIR Plans come with higher premiums and, unfortunately, limited coverage.
Improve Your Home’s Insurability
One of the best ways to secure a more affordable policy is to make your home more insureable. For instance, here are some simple things you can do:
Install fire-resistant roofing, such as Shiloh CeDUR Synthetic Shake
Upgrade old electrical plumbing systems
Add storm shutters, reinforced windows, or a sump pump to minimize weather
Implement security measures, like an alarm system or deadbolts, to lower burglary risk.
Keep trees and shrubs trimmed
Bundle Policies for Potential Discounts
Some insurance companies offer discounts when you bundle homeowners insurance with auto or life insurance. And if you’re in need of either one of these options, it’s always worth reaching out to your insurance provider to see what they can do.
But if you live in an area prone to damages, this might not be as effective of an option because external damages could also impact your car.
Increase Your Deductible
Although many do not want to opt for a high deductible, it is an effective method of lowering your premium. But you need to make sure that your savings actually has enough to cover the deductible in case a claim is needed.
Maintain a Good Credit Score
Many insurers consider credit history—albeit a small factor—when determining rates. So look into your credit score and find out if there is anything you can do to improve you score to secure better coverage.
Of course, building your credit score takes time, though if you start taking steps early enough—before you need to secure high-risk homeowners insurance—you might be able to improve your chances.
Review Your Policy Annually
Reviewing your policy annually and communicating with your high-risk insurance company regularly is an underestimated yet effective strategy. And here’s why:
By building relationships with your insurance provider and reviewing your policy, you may be able to compare options and present this information to your provider more personally. As a result, you may be able to have your provider increase the amount your provider is wanting to insure.
Document Home Improvements
Keep records of any—and all—upgrades you make to your home, from the roof to the sidewalk to the siding and foundation.
If you use fire-resistant materials, security enhancements, or structural reinforcements, you need to make sure your insurance provider is aware of these improvements and present these to them.
How Much More Expensive Is High-Risk Homeowners Insurance?
The cost of high-risk homeowners insurance can vary drastically, but it is typically about two or three times higher than other states, especially if you live in California.
To give you an idea, the average homeowner’s insurance in Tennessee is $2,435. And while the average homeowners insurance in California is $1,350, the premiums for homes in high-risk areas can reach up to—or more than—$10,000.
Therefore, the cost of the high-risk homeowners insurance is much more expensive.
Why CeDUR Synthetic Shakes Your Home More Insurable
One of the smartest and, possibly, easiest investments you can make to improve the insurability of your home is upgrading your roof. Here’s why:
Class A Fire Rating
Unlike traditional wood shakes, CeDUR designs synthetic shakes that are Class A fire-resistant, which means: the roof will not only be able to withstand the heat of debris but also the flames of the fire itself.
Increased Durability
Want your roof to be able to take a hit? CeDUR roofing has a Class 4 impact rating, and the shingles can withstand severe weather conditions.
Resistance
Homes with CeDUR roofs also have an increased level of resistance to moisture, mold, and UV damage, all of which significantly impact homes each year. By installing CeDUR’s roofing material, you can reduce the chances of this happening.
Aesthetic Appeal
When homeowners use CeDUR roofing, they get the beauty of natural wood without the fire hazard. But the best part? They come in four colored options:
Use CeDUR Roofing for Your High-Risk Home
Owning a high-risk home is already challenging enough. You should have to endure the cost of high insurance rates and even higher insurance premiums.
To lower the cost, find the best high-risk homeowners insurance company you can find, make additional improvements to your property, and invest in CeDUR’s high-quality roofing material for your roof.
Not only will these improvements increase the chances of finding affordable coverage, but they may also significantly increase the value of your property as a whole.
Ready to make a change to your home?
Explore CeDUR’s synthetic shake roofing solutions, view our resources, or contact us today!