The Best High-Risk Homeowners Insurance Companies Of 2024

• Progressive – Best for Poor Credit
• State Farm – Best for Old Roofs
• Allstate – Great for Severe Weather Areas

High-risk home insurance is a policy for homeowners who are more likely to file a claim. That means homeowners insurance companies view them as risky. This may be because of the homeowner’s past claims history, a poor credit history, the property’s claims history, the area’s claims history, the region’s weather or multiple other factors.

High-risk home insurance typically costs more than lower-risk policies. The costs vary by company and the risks involved, among other factors.

One company may consider an area’s weather a critical factor and weigh that more than other metrics like credit history, claims history or roof condition.

Areas Prone to Severe Weather

Company	Average annual rate
Progressive	$1,335
Allstate	$1,650
State Farm	$1,890
Travelers	$2,458
Auto-Owners	$2,815
Cincinnati	$2,857
Chubb	$2,872
Nationwide	$2,879
Farmers	$2,942
USAA*	$3,578

Source: Quadrant Information Services. Average rates for 20 high-risk ZIP codes with potential severe weather for $350,000 in dwelling coverage with a $500 deductible.
*USAA is available only to military members, veterans and their families.

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Houses with Old Roofs

Home insurance companies view old roofs as risky because they don’t offer as much protection against storms, wind and hail as newer roofs. A roof damage can lead to costly home insurance claims if the home’s interior is also damaged. Homeowners with 20-year-old roofs pay over $800 more annually for coverage than someone with a new roof, based on our analysis.

Company	Average annual rate for homes with 20-year-old roof	Average annual rate for homes with new roof	Percentage difference
Mercury	$1,466	$703	109%
Westfield	$1,707	$1,214	41%
Cincinnati	$1,972	$1,030	91%
State Farm	$1,980	$1,109	79%
Progressive	$2,021	$642	215%
Erie	$2,426	$1,214	100%
Chubb	$2,439	$1,814	34%
Country Financial	$2,480	$1,750	42%
Auto-Owners	$2,554	$1,643	55%
USAA*	$2,716	$1,129	141%
Allstate	$2,738	$1,255	119%
Nationwide	$2,915	$1,055	176%
American Family	$2,930	$1,502	95%
Farmers	$2,979	$2,044	46%
Travelers	$5,756	$2,628	119%
National average	$2,244	$1,411	65%

Source: Quadrant Information Services.
*USAA is available only to military members, veterans and their families.

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Homeowners with Aggressive Dog Breeds

Our research has found that most home insurance companies don’t charge more for possessing an aggressive dog. Here’s a look at the companies that have a surcharge for insuring a homeowner who has an aggressive dog breed.

Company	Average annual rate for homeowners with aggressive dogs	Average annual rate for all homeowners	Dollar difference
Progressive	$957	$975	$18
Westfield	$1,326	$1,340	$14
State Farm	$1,446	$1,470	$24
American Family	$2,115	$2,115	$9
Hanover	$2,894	$2,922	$28

Source: Quadrant Information Services

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Homeowners with Poor Credit Scores

Homeowners who have poor credit scores pay 31% more on average for home insurance than those with good credit. That’s a difference of over $1,200 on average a year.

Company	Average annual rate for homeowners with poor credit	Average annual rate for homeowners with good credit	Percentage difference
Progressive	$1,426	$957	33%
Cincinnati	$1,773	$1,277	28%
Nationwide	$2,386	$1,468	38%
Westfield	$2,542	$1,326	48%
Country Financial	$2,678	$2,050	23%
USAA*	$3,064	$1,574	49%
State Farm	$3,445	$1,446	58%
Allstate	$3,488	$1,800	48%
American Family	$3,693	$2,106	43%
Erie	$4,754	$1,590	67%
Chubb	$4,834	$2,086	57%
Farmers	$8,284	$2,385	71%
Travelers	$10,793	$3,425	68%
National average	$2,900	$1,668	31%

Source: Quadrant Information Services.
*USAA ia available only to military members, veterans and their families.

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A property, its location and/or the homeowner could all be deemed high-risk by home insurance companies.

High-Risk Homeowners

Examples of high-risk homeowners include:

• Homeowners with dog breeds that insurers believe are prone to biting or other dangerous behavior.
• People with a poor credit history.
• People running a business out of their home.

High-Risk Properties

• Homes in areas with severe weather.
• Homes in disrepair.
• Homes in regions with high crime, vandalism or theft.
• Homes with an old roof.
• Homes with multiple recent home insurance claims.
• Older homes.
• Vacant homes.

States With the Most High-Risk Regions

States generally considered high-risk because of hurricanes, tornadoes, wildfires and other types of severe weather include:

• Alabama
• Arkansas
• California
• Colorado
• Florida
• Georgia
• Kansas
• Kentucky
• Louisiana
• Mississippi
• Nebraska
• North Carolina
• North Dakota
• Oklahoma
• South Carolina
• South Dakota
• Texas

Consider the following strategies to find home insurance if your property is deemed a high risk:

• Ask neighbors who they have for home insurance. If you live in a high-risk area, those with nearby properties likely face the same coverage issues. Ask around about their insurance companies to understand which insurers may offer you coverage.
• Get quotes from multiple insurance companies. Homeowners insurance companies don’t have a uniform way of calculating rates. Insurers weigh factors differently, so it’s essential to compare home insurance quotes from at least three companies. Work with an experienced independent agent in your area who knows which companies are selling policies at the best prices.
• Contact an agent about buying a FAIR plan. States have home insurance programs for high-risk properties. These programs are usually called FAIR (Fair Access to Insurance Requirements) plans. If you’re having trouble finding home insurance coverage, talk with a home insurance agent about buying a FAIR plan. Your state’s FAIR plan can generally provide a list of licensed insurance agents and brokers that can help you apply for a FAIR policy.

FAIR plans are for properties that private home insurance companies won’t cover. These state plans are considered insurers of last resort.

FAIR plans are usually more expensive than standard home insurance. While standard coverage from a regular insurance company usually includes your belongings and additional structures like fences, a FAIR plan may exclude that basic coverage, or you may be able to add it for a higher cost.

FAIR plans usually don’t provide liability insurance or coverage for loss of use, also known as additional living expenses.

Each state has eligibility requirements for its FAIR plan, which may include:

• Denied by at least two insurance companies.
• Property doesn’t violate building, housing, sanitation or other ordinances or rules.
• No outstanding taxes, liens, penalties or assessments.
• You may have to reapply for private coverage every two years to see if a private insurer will give you a policy.

Companies may deny home insurance coverage for a host of reasons, including homes that are:

• Built in a commercial area, on a hillside, on a landfill, on stilts or pilings, or over water.
• Difficult to access by public safety vehicles.
• In an area prone to floods.
• In an area prone to wildfires.
• In poor condition.
• Older than 50 years.
• Under renovation or construction.

These issues can also be deemed high risk:

• Old or damaged roof.
• Old wiring and electrical panels.
• With trampoline, pool or perceived dangerous structures.
• Underground oil tank.
• Unusual construction, such as A-frames, earth homes or log homes.
• Wood-burning stoves.
• No central heating.
• Vacant.
• Tiny home.

And these uses could make it harder to find home insurance:

• Home is rented out.
• You run a bed and breakfast out of it.
• You run a daycare out of it.
• It’s a secondary residence.
• It’s used for business purposes.
• It’s used for college housing.

There are many ways to potentially lower your property’s risks. You can’t pick up your home and move it to an area with better weather but you can lower risks in other ways.

• Home renovations: Home insurers may consider you risky if your home is in disrepair. This is especially true if your roof is older than 20 years. If you have an old roof, your insurance company may drop you if you don’t install a new roof to better protect the house.
• Improve your credit: Home insurance companies often use credit history in setting rates. Only California, Maryland, Massachusetts and Michigan forbid home insurers from using credit history when setting rates. Insurers believe homeowners with poor credit are riskier because they’re more likely to file claims. By improving your credit, you can become more desirable for home insurers and you may get cheaper rates.
• Install burglar alarms: Home insurance companies often provide discounts to homeowners who have have burglar alarms since those systems may potentially lead to fewer claims.
• Put in smart home devices: Small home devices, such as water leak sensors and temperature monitoring systems, can lead to lower rates.
• Check your roof: Home insurance companies value newer roofs. They are key to protecting a home from damage. Look for loose or damaged shingles.
• Install outside lighting: Motion-detecting lights can keep intruders away.
• Cut back trees: Trees that overhang your house can become a costly insurance claim. This is especially problematic if you have weak or dead branches that may snap and land on your roof. Making sure trees are trimmed can reduce risks.
• Fire-resistant landscaping: If you live in an area prone to wildfires, outdoor fire-resistant plants and landscaping can reduce your fire risk.

To find the best high-risk home insurance companies, we analyzed costs, policy information and complaints against insurers. We scored companies based on these factors:

• Home insurance rates in severe weather regions (30% of score): Based on average rates for homes with dwelling coverage of $350,000 in 20 ZIP codes with severe weather. Source: Quadrant Information Services.
• Home insurance rates for poor credit (20% of score): Based on average rates for homes with dwelling coverage of $350,000 for homeowners with poor credit. Source: Quadrant Information Services.
• Home insurance rates for homes with old roofs (20% of score): Based on average rate for homes with dwelling coverage of $350,000 and 20-year-old roofs. Source: Quadrant Information Services.
• Complaints (20% of score): Based on complaints logged in 2023 about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.
• Banned dog lists (10% of score): Banned dog breed lists can make homeowners ineligible for coverage. (A company’s banned dog list might not be applicable in all states.) While any homeowners insurance company could potentially ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.

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