5 Best High-risk Homeowners Insurance Companies of 2022

Shopping for a standard homeowners insurance policy can be complicated, but it gets trickier when insurers categorize you or your property as high-risk. High-risk homeowners insurance applies to several risk factors, such as a recently filed claim or a high rate of natural disasters in your area. Depending on the risks you and your property pose, insurers may exclude specific perils from your policy, charge a higher premium or deny you coverage altogether.

We at the Home Media reviews team analyzed the best homeowners insurance companies nationwide. We then narrowed them down to the best high-risk homeowners insurance coverage providers.

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 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

• Aggressive pets
• Criminal record
• Excessive claims history
• Home-based businesses
• Low credit score

Property

• Location with frequent crime or extreme weather
• Low vacancy, such as a vacation home
• Old home
• Roof older than 20 years
• Structural issues

Top 5 High-risk Homeowners Insurance Companies of 2022

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:

State Farm

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 and renters 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 agents to distribute 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 of State Farm Home Insurance

​​+ Availability in all 50 states

​​+ Extensive online resources to help you understand your coverage needs

​​+ Online quote tool that features a home value estimator

– Fewer discounts than some competitors

– Online quotes not available in all 50 states

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.

Get your quote: Call 1-360-262-2561 to find your local State Farm agent and get a free quote today.

To learn more: State Farm Insurance review

Liberty Mutual

Liberty Mutual is our pick for ways to save — you can use 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 of Liberty Mutual Home Insurance

​​+ Availability in all 50 states

​​+ Hurricane and earthquake add-ons

​​+ Steep discount for bundling home and auto

– 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 world’s sixth-largest property and casualty insurer, providing a solid foundation for assuming risks that smaller companies may not cover.

Get your quote: Fill out Liberty Mutual’s quick quote form.

To learn more: Liberty Mutual Insurance review

USAA

USAA is our top insurance option for veterans. It bolsters competitive coverage with perks such as financial services, retail and rental car discounts, and a unique endorsement 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 of USAA

​​+ Availability in all 50 states

+ Numerous member benefits

+ Personal property protection without depreciation

– Above-average premiums

– Limited natural disaster protection

Why We Chose USAA

While this company only insures military members and their relatives, 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.

Get your quote: Become a member and fill out USAA’s quick quote form.

To learn more: USAA Insurance review

Allstate

Over the past 90 years, Allstate has earned a Superior 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 endorsements for water damage, yard and garden, musical instruments, sports equipment, luxury goods and business properties. Allstate also offers impressive flood coverage through National General, an Allstate company, with higher limits than the Federal Emergency Management Agency (FEMA)-backed NFIP.  

Pros and Cons of Allstate

​​+ Coverage in all 50 states

​​​​+ Discount for bundling policies

+ Premium stability with Claim RateGuard

– Higher-than-average prices 

– State-dependent online quote availability

Why We Chose Allstate

Allstate is an excellent option for flood insurance and unique endorsements 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.

Get your quote: Fill out Allstate’s quick quote form.

To learn more: Allstate Home Insurance review

Travelers

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 of Travelers

​​​​+ Coverage availability in high-crime areas

+ Free home history report via OpenHouse

​​+ Innovative deductible program

– Three policies required for a multi-policy discount

– No natural disaster 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.

Get your quote: Fill out Travelers’ quick quote form.

To learn more: Travelers review

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.

The best way to find affordable coverage is to shop around, talk to agents and get multiple quotes to understand how various insurers are willing to handle your unique situation.

What Should I Do If I Can’t Get 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 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.

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 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, widespread availability, unique add-ons and impressive discounts that can help counteract the expensive premiums of high-risk coverage.

Compare High-risk Homeowners Insurance Companies

Check out our comparison of the top high-risk home insurance providers below.

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 judge each company’s quality and service. We reach out for sample quotes, both over the phone and on the internet, to simulate an authentic customer experience. Here are the factors that account for our provider reviews:

• Coverage (20%): We analyze each provider’s coverage options, policy endorsements and coverage limits to determine quality of coverage.
• Customer service (15%): We also evaluate each company’s customer service options such as live chat, a customer support phone line and access to agents.
• Technology (15%): Similarly, we score providers based on their digital resources, such as a mobile app, online comparison tools and quote process.
• Reputation (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings.
• Additional benefits (15%): Additionally, we weighed each company’s added benefits, including discounts and policy endorsements.
• Cost (20%): Last, we compare cost data for homes across the nation to assess how competitively priced each provider is.

Companies with the best customer service exhibit 24/7 availability, educational resources on their website, useful digital tools and a seamless claims-filing process. Providers that offer extensive discount options, endorsements, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

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