High risk home insurance provides financial help for the damages that occur during natural disasters. This Buzzle article enlists some of the best high risk home insurance companies.
“People who own coastal properties may need to pay close attention to the contract terms of their homeowners insurance policy, in particular the exclusion section, in order to determine the type of water coverage their policies provide and the extent of such coverage, if any.”
― Yu-Luen Ma, Professor of risk management, Illinois State University
An insurance policy offers financial help during troubled times. The types of insurance include automobile, life, fire, home, disability, disaster, business insurance, and many more. It is essential to have a good policy, for it helps us tide over bad times. Every policy has different premium rates, based on the assessment of risk. Insurance companies use the concept of risk management extensively, in order to decide the price of the policy and the payout at the time of expiry. A number of conditions play a role in deciding when and how much the company should pay to the customer. In the paragraphs below, we are going to learn about the concept of homeowners insurance, and some of the best high risk home insurance companies.
High Risk Home Insurance
- High risk homeowners insurance is the one that provides a person with compensation when his house is destroyed.
- The term ‘high risk’ here indicates that your home is located in an area that is subject to high risk, i.e., high risk of getting destroyed easily.
- The high risks include natural disasters, like tornadoes, earthquakes, hurricanes, storms, floods, fires, etc.
- There are certain areas wherein such disasters are prone to occur, for instance, the seaside, forests, etc.
- Ideally, you have to pay more premium if you live in such areas, because the payout is more as well.
- Another scenario when your home could be considered at high risk is when filing several claims within a short span, say a couple of years.
- The companies that offer this insurance have certain terms and conditions, based on which the payout varies.
- Generally, factors like your house location, price, premium rate, climatic influence, etc., are considered.
- Companies even consider the historical data and other relevant information for the past decade or so as well as other risks, before taking a decision.
Best High Risk Home Insurance Companies
- According to reviews, Amica is highly professional and has one of the best services.
- The company offers safety discounts and its prized possession is its online access tool.
- Amica is known to be very prompt in terms of payouts.
- The online Amica Storm Center helps you prepare for unexpected impending disasters.
State Farm Insurance
- It is a very old company and has a huge operation of homeowners insurance policies.
- It does not use independent finance agents, instead, it directly communicates with the customers.
- It has an online resource that helps high risk homeowners conduct online insurance quotes.
- It offers a myriad of insurance packages.
- You can get a coverage according to how much you can afford.
- It covers damages in case of accidental injuries, provides expenses for living elsewhere, as well as covers the cost of personal property.
- Their policy packages also include flood and fraud insurance.
- It has an excellent management system that offers the best quality customer service.
Allstate Insurance Company
- It contains several individual homeowners’ policies.
- Their coverage varies from state to state, as well as the type of home you live in.
- One of their greatest plus points is their huge network of finance agents.
- These agents offer you the right advice and help you choose the right coverage based on your needs.
Country Financial Insurance Company
- This company offers several policy packages as well.
- They have special policies for renters and condominium owners as well.
- According to reviews, it is a financially stable company, which explains that it can certainly cover all its claims.
- It also has a team of experts who can guide customers to take the right policy.
- In special scenarios, it can help you get a high coverage at a reasonable price, as well as offer discounts.
- It is based in Texas and is touted to be one of the best.
- The quick payout procedure is one of its strengths.
- It has a network of numerous agents who can instantly connect to their customers in any part of the country.
- It also allows its customers to look out for competitive premium rates.
- Currently, the company has its licensed locations in 46 states, and offers excellent service.
American Family Insurance
- This company has a wide variety of experts who offer guidance to their clients.
- You can quickly get a renters estimate or request a quote using their online services.
- The experts also offer advice on how you can make your home safer.
- It provides insurance through selected companies.
- It also offers several discounts on its policies.
- Another advantage is that it charges low premiums.
- Moreover, your policy is drafted considering your needs as a priority.
Things to Remember
- If you do not make your payment on time, your homeowners insurance is likely to lapse immediately.
- In case of cancellation, to reinstate your policy, contact the company/insurer as soon as possible. You might have to go through a few formalities, like signing a ‘no-loss’ statement. Otherwise, you might have a gap in coverage.
- Your insurance may be canceled if your house is vacant, that is to say, most companies have rules regarding how long your house can remain empty.
- The Insurance Information Institute states that some companies may offer a 30-day vacancy permit (on request) that will not cover theft and water damages.
- Unless you are staying in a flood or earthquake-prone area, you will not be covered under high risk. You will have to purchase flood or earthquake insurance policy.
- If you are staying in an area infested by vermin, like rats, wild birds, rodents, etc., the damages may or may not be covered. That is to say, if you have had enough time to call the animal control agencies and take preventive action, you will not be covered. On the other hand, if you had no idea and the animals have damaged your home suddenly, you will receive compensation.
While signing an insurance policy, read the document carefully. When your home is categorized under ‘high risk’, a number of factors come into play. These factors are carefully assessed and only after that do you receive your payout. Of course, the companies listed above are some of the best and do provide complete financial assistance. However, you need to be vigilant as well, lest you sign on something and regret later.