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What Is High Risk Home Insurance?

insurance Ontario

We’ve devoted quite a bit of content here on the blog discussing high risk auto insurance.

But high risk does not only apply to your car and its coverage. It is also a consideration when you’re looking to insure a house or a property.

So in this post, we’re going to talk high risk, but this time as it relates to home insurance.

And stay tuned for a follow-up post here on the blog where we give you some ideas for saving on insurance, even when you’re considered high risk.

As we’ve learned, when you’re looking for the best insurance rates, you don’t want to be in the high risk category, no matter what type of coverage you need!

High risk home insurance defined

Similarly to its auto insurance counterpart, high risk home insurance refers to coverage that is considered riskier than a run-of-the-mill plan. Thanks to this risk, insurance rates will be higher to cover the insurance provider for the higher costs associated with writing such a plan.

Why would home insurance be considered high risk?

So the next logical question when it comes to high risk home insurance is when would this categorization apply? It essentially comes down to two different scenarios…

You’re high risk

The first scenario where high risk home insurance may apply is when the applicant his or herself is considered high risk. As with being a high risk driver, you’re put into the high risk applicant category when you…

  • Have a history of non payment or late payment on home insurance
  • Have had a home insurance policy cancelled in the past
  • Have made a significant amount of home insurance claims with previous policies
  • Are a first time homeowner without a past record of home insurance coverage (similar to being a young driver)
  • Have two or more mortgages

Your home is high risk

Even if you yourself are not high risk, the home or property you want to insurance may be. Here are some examples of high risk flags for insurance companies…

  • Cottages, vacation homes and rural properties
  • Homes that are not always occupied
  • Heritage or older buildings
  • Homes that have wood heat or oil tanks
  • A rental property where you as the landlord are geographically removed
  • A home or property that is located in an area considered risky, such as a geographic location prone to flooding or major storm events such as tornados.

As a homeowner, you need home insurance. If you’ve been put in the high risk category, we’re here to help you find the best option at the best price. Check out out online home insurance quote system or get in touch with one of our insurance specialists today.

And stay tuned for our follow-up post that will touch on ways to save on your home insurance if you find yourself in the high risk category.

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Image source: | Stuart Miles

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