A homeowners insurance policy is a key part of a solid financial foundation, but it can be difficult to obtain this essential coverage as a high-risk homeowner.

If you live in a high-risk area — or have a poor credit history or lengthy claims record — you may consider a Fair Access to Insurance Requirements (FAIR) Plan. State-run FAIR Plans can help you access the insurance you need, but they cost more and provide limited coverage. You have options to try before resorting to a FAIR Plan.

Here’s what you should know about high-risk home insurance, including comparing quotes and coverage options.

Best high-risk homeowners insurance

Some insurance companies don’t work with high-risk homes and homeowners, but many do. Here’s a closer look at a few of the best homeowners insurance companies for high-risk policyholders and homes.

Best for coastal homes: Liberty Mutual

Best for vacant homes: American Family

Best for high-value homes: AIG

How to know if your home is high-risk

Every insurer takes a slightly different stance on risk factors. But most insurers consider homeowners with an extensive insurance claims history or a poor credit history a higher risk. Insurers also view older homes or historic homes with antiquated building methods as a higher risk to insure.

The table below indicates some common risk factors to keep in mind about your home and your policyholder profile.

States or regions that are high-risk

The exact location of your home will have a big effect on the perceived risk. Some states and regions have more risk factors than others.2 For example, Florida homes are more susceptible to hurricanes, and California homes are more susceptible to wildfires.

The table below highlights some general risk factors for selected regions.

How to get high-risk home insurance coverage

If you run into issues when looking for insurance, use the following strategies to find a policy that suits your needs:

What to do if you’re denied coverage

After a denial, you can take action to get the coverage you need.3 Use the steps below as a guide if you can’t secure home insurance.

Assess the risk and take steps to remedy it yourself

The first step is to find out why an insurer denied you coverage. Your insurer might deny you coverage if you live in a location with a high risk for natural disasters or crime or if your home has a damaged roof.

In some situations, you can choose to remedy the issue on your own. For example, if an insurance company denied you coverage due to an older roof, replacing it could help you qualify for coverage. Or if you live in a high-crime area, installing a security system might make it possible to obtain regular insurance.

Consider non-standard insurance companies

A standard home insurance policy often excludes coverage for certain natural disasters. As a homeowner seeking coverage for a particular disaster, you may need to turn to non-standard home insurance companies to find the policy you have in mind.

Apply for coverage again

After exploring the different insurance companies in your area, it’s time to apply for insurance again. For example, if you made repairs to eliminate potentially high-risk situations from your home, an insurer may be willing to provide the coverage you need.

Get home insurance through the FAIR Plan as a last resort

FAIR Plans are available to homeowners in some states. While this type of policy could help you get coverage, it’s usually more expensive than a standard home insurance policy. Plus, most FAIR Plans have limited coverage.

If possible, seek out other options before committing to a FAIR Plan.

FAIR Plan insurance explained

A Fair Access to Insurance Requirements (FAIR) Plan is a home insurance program for uninsurable homes or homeowners. It’s a state-run option that specifically covers homeowners in high-risk areas who can’t secure standard coverage through the voluntary market, according to the International Risk Management Institute (IRMI).4

In general, FAIR Plans have higher insurance premiums and deductibles than standard home insurance policies. FAIR Plans offer different coverage from standard insurance policies, and the covered events vary by state.

For example, plans in California include coverage for brush fires, and New York plans offer wind and hail coverage for some coastal communities.5

FAIR Plan policies aren’t available in every state. But if you can’t find coverage through the private market, seeking out a FAIR Plan option could help you tap into the coverage you need.

Contact your state’s FAIR Plan

If you want more information about your state’s FAIR Plan, you can reach out to the appropriate organization.

The table below highlights which states have FAIR Plans and provides the accompanying phone numbers.