Last Updated April 2026
- High-risk home insurance provides coverage for homes that may have a higher chance of damage or insurance claims.
- Insurers may consider a home higher risk based on its condition, design, past claims or exposure to certain hazards.
- Risk assessments consider many factors — not just location — including the risk of disasters and insurance pricing models.
- High-risk homes may still qualify for coverage, but policy options may vary.
- Improvements such as replacing an old roof, updating electrical or plumbing systems or adding wildfire‑resistant features may help reduce certain risks.
- If traditional coverage is limited, other options may be available, such as state-backed plans or specialty insurers that cover high-risk homes.
High-risk homeowners insurance can provide coverage for homes insurers believe may be more likely to experience damage or costly claims. To make these decisions, insurers look at information about the home and surrounding risks, using data and state-approved pricing guidelines. By law, these decisions must be applied fairly and consistently.
What can make a home a higher risk to insure?
Insurers consider many factors to evaluate a home’s risk for damage and loss.
- Age and condition of the home, such as a worn-out roof or outdated electrical or plumbing systems.
- Design or building materials: for example, homes with complex structures or large glass walls.
- Exposure to natural hazards, such as high winds, hail or wildfire.
- Past claims, especially if there have been multiple claims for the same type of damage.
How do insurers evaluate risk?
Natural hazards
Insurers typically evaluate the likelihood that a specific home will be affected by natural hazards such as wildfire, hurricanes, severe wind, hail or earthquakes. They use disaster risk models and historical data to estimate how severe future damage might be.
Age, upkeep and maintenance history
Information in your insurance application, inspections and public property records help insurers evaluate whether a home’s systems have been updated and maintained over time. For example, a visual inspection may reveal missing roof shingles or sagging gutters that could factor into a higher risk evaluation for water damage.
Past claims
Multiple claims within a short period, particularly for the same type of damage (think: water damage), may signal ongoing maintenance or structural issues.
Home upgrades and improvements
Insurers look for certain home improvements and upgrades, which may help reduce the chance or severity of damage and may help a home avoid being considered higher risk. Examples include:
Wildfire-prone areas: Fire-resistant roofing materials or defensible space cleared of vegetation near the home.
Hurricane-prone coastal areas: Reinforced roofs, windows and other structural elements that are better able to withstand strong winds.
Older homes: Updated electrical or plumbing systems, the presence of leak-detection devices or a new roof.
Coverage for floods and earthquakes
Standard home insurance policies typically do not cover damage from floods or earthquakes. Flood coverage may be available through the National Flood Insurance Program (NFIP). Earthquake coverage can be purchased separately in some areas, including through the California Earthquake Authority (CEA).
Farmers® and higher-risk homes
Knowing that good risks can be found anywhere, Farmers Insurance® bases risk evaluations on objective factors about the home and its potential exposure to damage or loss — not just where it’s located. Rating, sales and underwriting practices are applied fairly, consistently and without discrimination.
How insurance may differ for higher-risk homes
High-risk homes can often still qualify for insurance coverage. However, some policy terms or conditions may differ. Differences may include:
Higher deductibles
This means the homeowner pays more out of pocket before insurance coverage applies. In certain areas, policies may also include separate deductibles for specific types of losses, such as windstorm, hurricane or hail damage. These deductibles may be a fixed dollar amount or a percentage of the home’s insured value.
Adjusted coverage limits
Higher coverage limits may be required to reflect the cost of rebuilding a home with unique features or in an area where reconstruction costs are high.
Specific endorsements or coverage conditions
Endorsements — changes or additions to the policy — can address specific exposures. They can add protection, limit coverage or clarify how the policy applies to certain risks.
For example:
- A homeowner in a hurricane-prone area may add a windstorm endorsement that adds a separate deductible for wind-caused damage. If a home has a $400,000 dwelling limit and a 2% hurricane deductible, the homeowner would pay the first $8,000 of hurricane-related damage before insurance coverage applies.
- A homeowner concerned about sewer backups may add water backup coverage. Water damage from a backed-up sewer, typically not covered by home insurance, would be covered up to the endorsement limit.
If your home is considered high risk and you want to understand your coverage options, a knowledgeable insurance professional can help you review your dwelling coverage limits, see how deductibles would apply if you file a claim and explain available coverage options.
What homeowners can do to reduce home risks and manage insurance costs
Taking practical steps to protect your home can help decrease the chance or severity of damage and may help with insurance costs. The Institute for Business & Home Safety is a resource for information about natural hazards and ways to safeguard your home. Making changes in your homeowners policy can help you manage costs, too.
Maintain key home systems
Replace aging roofs, update electrical or plumbing systems and schedule routine inspections to help prevent fire, water damage or structural problems.
Reduce exposure to natural hazards
In wildfire- or storm-prone areas, clearing vegetation, using fire-resistant roofing materials or reinforcing roofs and windows may help limit damage.
Address water damage risks
Maintain plumbing, improve drainage and consider installing leak-detection devices to help prevent leaks or water intrusion.
Review policy choices
Insurance costs are also impacted by the deductibles, coverage limits and optional endorsements you choose. In some cases, approved home improvements or protective devices may qualify eligible homeowners for discounts.
Other insurance options if standard homeowners coverage is limited
Homeowners needing help finding coverage can call their state insurance department to learn which insurers are writing policies in their area, according to the Insurance Information Institute (III). If traditional coverage is difficult to get, other coverage options may be available. Two common alternatives include:
State-backed insurance plans
Many states offer programs that help homeowners obtain basic property insurance when coverage is not available from standard insurers. Examples include FAIR (Fair Access to Insurance Requirements) plans in California, Texas, Illinois, New York and other states, as well as similar programs such as Florida’s Citizens Property Insurance Corporation, the Louisiana Citizens Property Insurance Corporation and the North Carolina Joint Underwriting Association. Homeowners sometimes combine these policies with a separate policy that covers liability and personal belongings.
Specialty insurers (often called surplus lines insurers)
Some insurers specialize in covering homes that traditional insurance companies may decline. These insurers can provide coverage for properties considered higher risk or with unique characteristics. Policy terms, pricing and coverage features may differ from traditional homeowners insurance.
These options can help homeowners maintain coverage while they work to reduce risks or explore other insurance solutions.
FAQs
What are common misconceptions about how insurers evaluate higher-risk homes?
Some homeowners may assume a home is considered higher risk based only on its location. In reality, insurers typically consider a range of factors, such as:
- Construction and design of the home
- Age and condition of key systems, such as the roof, plumbing or electrical wiring
- Maintenance history and repairs
- Exposure to natural hazards, such as wildfire, severe wind or hail
Another common misconception is that a past insurance claim automatically prevents a homeowner from getting coverage. While claims history may be considered, insurers often look at other details, such as whether repairs were completed and whether the underlying cause of the loss has been addressed.
Insurers generally review several characteristics together to assess a home’s overall risk.
What steps can a homeowner take if they can’t secure coverage?
If a homeowner has trouble finding standard homeowners insurance, there may still be options to explore. Homeowners may consider:
- Reducing or fixing specific risks, such as repairing an aging roof, updating electrical systems or clearing vegetation around the home.
- Looking into state-backed insurance programs, which may offer basic property coverage when traditional insurance isn’t available.
- Exploring specialty insurers (often called surplus lines insurers) that may cover homes standard insurers decline.
What options do homeowners have if their home is considered higher risk?
Homes with certain risk factors may still be eligible for coverage, but with changes in your policy’s terms, including deductibles and coverage limits. Your agent or other insurance professional can help you review your options, including steps that may reduce risks and endorsements that may provide additional protection.
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to this article or the information, products, services, or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.
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