Home insurance is a type of property insurance that covers the financial losses and damages to a residence, including its furnishings and other assets. It also covers injuries that may occur while on the property. Some insurance policies do not cover Acts of God or Acts of War. These factors are usually excluded because they are unpredictable, and it’s difficult for insurance companies to accurately predict the cost of damages. Home insurance liability limits are usually set at $10,000, but the policyholder may have the option to opt for a higher limit. These payments are usually included in the homeowner’s monthly mortgage. High-risk home insurance is typically more costly.
What Is High-Risk Home Insurance?
A property is considered to be high-risk when an insurance company believes that the property is financially riskier and could cost them more to insure, or the company knows that a client has had issues getting home insurance in the past. In turn, finding a company to insure your property may be more difficult, and your policy rate may be higher.
There are different factors that can affect your home insurance rates. Your home may be considered high-risk if it is:
- Older than a century
- Is located in a rural area
- Is located in a storm-affected area
- Is vacant
- Is a vacation home
- Has galvanized plumbing
An insurance company may consider you to be a high-risk property owner if you:
- Have a history of poor claims
- Have more than two mortgages at the same time
- Are a new homeowner
What To Do If Your Home Is Considered High-Risk
It’s not always possible to relocate to an area or to a home that is not considered high-risk. There are a couple of things that you can do to get a lower insurance rate. First, you can protect your house by ensuring that the building can support itself in the event of a natural disaster. Getting a contractor to evaluate the home at least once a year is ideal, especially if it is older. Removing dead trees and other objects that could damage the home in the event of a storm is a great preventative measure. Be sure to replace or repair your roof if it has been damaged.
If you have had difficulties in getting insurance in the past, set yourself up for success by paying your future insurance premiums on time or have an automatic bill payment set up. Lastly, shop around and compare various insurance companies. Different companies offer different rates, deals, and packages that will better suit your situation. In addition, some companies will be willing to work with your budget. Don’t settle with the first quote you receive; see what your options are and evaluate the pros and cons of the company.
Where Can I Get High-Risk Home Insurance?
AiA Insurance offers high-risk insurance at affordable rates in Vaughan, Toronto, and the GTA. We’re determined to work with you and your budget and create a personalized insurance plan for all types of property, whether you are high-risk or not! If you think you qualify or want to know if you do, contact us today and protect your property from the unpredictable.
