High-Risk Home Insurance: What is it?


High-risk home insurance includes a type of home insurance made for homes which insurance agencies consider especially risky to insure. There will include many factors which lead our Insurance Agency in Lake Mary to consider a property high-risk. These types of factors involve the home’s history, construction, and location. Additional factors concentrate on the owner, like any insurance claims an owner has filed within the past and an owner’s credit rating. Usually, high-risk home insurance will be costlier than regular home insurance policies, yet there are methods in which owners may receive discounts and reduce their premiums.

Home’s location

One of the most typical reasons a homeowner may be faced with high-risk home insurance includes a home’s location. If a home is situated in a place that is considered a dangerous area of town, or inside a city that has a high crime rate, it may be challenging for an owner to buy homeowners insurance. Additionally, if the property is located in a place that often is subject to adverse weather conditions like snowstorms, hurricanes, tornadoes, fires, or floods, insurance agencies may consider the places risky to insure. You can insure with confidence with The Dawson Company. Our skilled insurance agents have 60+ years of experience in the field of insurance. Contact us today for a free, personal insurance consultation. At The Dawson Company we proudly serve the areas of Sanford and Lake Mary, FL by providing exceptional insurance coverage.

Mobile homes are high-risk

Some insurance agencies like our Insurance Agency in Lake Mary categorize mobile homes as high-risk. Generally, it’s because mobile homes are built of materials which depreciate over time. Occasionally, insurance agencies consider a mobile home and its construction material less resistant to the types of dangers traditional houses may more easily withstand.

Areas prone to natural disasters are considered high-risk

If a property’s location is considered high-risk because of severe weather conditions and natural disasters, there are changes an owner may make to make the property better able to withstand these types of conditions. Those changes may assist in lowering the price of the high-risk home insurance; however, it isn’t likely they’ll change the property’s high-risk status. Plus, homeowners ought to understand that, depending upon the location, it may be impossible to insure a home through a standard insurance agency. Within some places, a homeowner’s sole option includes a government-based or similar plan to insure property’s inside high-risk places.

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