Now, you’ve probably all seen the commercials on TV for the company that offers car insurance to high-risk drivers. They go through a list of offenses, and tell you how they don’t matter: “DUI? No problem!” “Accident prone? No problem!” These companies offer auto insurance for drivers that are considered to be high risk drivers. But, what happens if your home turns out to be a high-risk home and the homeowners insurance company is reluctant to insure you?

First of all, you need to figure out what it is that’s costing you your acceptance by the homeowners insurance company. There are any number of things that can make a property high risk. Some of those things you might not have any control over, such as living on an active flood plain. Other things, however, you might be able to do something about.

Here are some things you might be able to change in order to get covered:

• Property Hazards. There are plenty of things that an insurer might consider a hazard. An unfenced swimming pool with a water slide or diving board, for example, is considered a risk. For some companies, even having a trampoline on the property is considered a risk.
• Unsafe conditions. There are some unsafe conditions – such as living in an area with a high crime rate – that you can’t control. However, you can control things like disrepair. If your steps are cracked or your roof is leaking, for example, can be considered liabilities.
• Wood burning stoves. A wood-burning stove can save you money on heating fuel and can add a certain ambiance to your home. They also increase the risk of fire in a home. For some types of homes, such as manufactured homes, insurance companies won’t cover you at all if you have a wood burning stove. For other homes, you’re probably going to have to pay a higher premium.
• Multiple claims filing. If an insurance company sees that you’ve had several insurance claims over a few years, they may believe that you’re a risk. They may believe that you’re not doing the things you need to do to protect your home, or even perhaps engaging in insurance fraud.

If you keep getting turned down by the homeowners insurance companies, you may still have an option. Many states have a FAIR (Fair Access to Insurance Requirements) plan. These plans are backed by the state and designed to be an insurance plan of last resort. 35 states offer such plans, and they’re more expensive and cover less than traditional plans.

Photo via mtretiakova