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High-Risk Homeowners Insurance: An Overview

Homeowners insurance can vary between agencies and locations, but some policies are considered high-risk. The insurance agencies will inspect various parameters related to the house you plan to buy or sell before giving you the policy.

Here are some critical factors that determine the risk level.

Location

If your house is in an area that is prone to natural calamities, it is likely to be labeled high-risk. Most homeowners insurance policies cover damages and losses related to theft and vandalism, so if you live in a high crime rate neighborhood, insurance agencies will consider it risky.

Condition

Home improvement measures should be regularly undertaken by owners to keep the house in good condition. If your house is in bad shape, with broken roofs and walls covered with fungal growth, you can expect the agency to charge a higher insurance premium.

Vacant Homes

You may want to get high-risk homeowners insurance for your summer house or winter cabin, and not your regular home. Since you are going to spend only a few weeks or months in these otherwise vacant places, these are considered high-risk since there is no one to keep a tab on the maintenance.

Credit Report and History

Although not directly related to the property, insurance agencies consider this risky if you have a bad credit score. Similarly, if you have a history of filing claims, it would be unsafe for the agencies to cover your house.

If you feel your house is in a high-risk category, you can consider doing the following:

  • For a new home, enquire with the neighbors about their insurance policies and see if it is favorable.
  • For an existing home, do thorough repairs and improve the overall quality of the house.
  • Clear off all past debts and have a clean credit record.

These factors classify your homeowners insurance as a high risk one. For assistance with your homeowners insurance needs, contact the experts at Scautub Agency in Scotia, New York. We look forward to helping you with all your coverage needs.

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