High-Risk Homeowners Insurance
- Standard policies often exclude flood and earthquake damage, requiring separate coverage.
- FAIR Plans or other last-resort options may be necessary when private insurers limit availability.
- Expect higher premiums and deductibles, though mitigation steps can help lower costs.
High-risk homeowners insurance: can you be denied home insurance?
Yes, insurers can deny coverage if they consider you or your home too risky to insure. Factors like frequent past claims, an older roof, or living near a floodplain or fault line can all lead to denial. This guide explains your coverage options, including FAIR Plans, and how to improve your chances of approval while keeping costs down.
What makes a home or a homeowner high-risk?
There are many reasons a homeowner, a property, or both can be considered high-risk. Below are common reasons for homeowners insurance policy denial.
| You | Your Home |
|---|---|
| Previous claims history | Structural issues with your home |
| Owning a home business | Age of roof |
| Low credit score | Living in a high-risk area (crime or weather) |
| Criminal history | Vacant home/vacation home |
| Aggressive pets | Age of home |
While some factors may seem unrelated to homeowners insurance, they can affect your liability coverage, which applies if you’re responsible for damage to others or their property. If your history or home’s condition signals higher risk, insurers may deny coverage.
Addressing structural issues (like replacing an old roof) can lower risk, earn discounts, and help you requalify with standard insurers once updates are verified. Because wildfire risk often limits coverage in some areas, start by checking quotes from private insurers. If you’re repeatedly denied, your state’s FAIR Plan may provide last-resort protection.[1]
Need better home coverage? We can help.
What is FAIR Plan insurance?
Although homeowners insurance is not required by law, your mortgage lender will likely require you to carry coverage. If you’re continually denied coverage, look into your state’s FAIR Plan.
What does FAIR Plan insurance cover?
You should consider FAIR as a last resort for homeowners insurance, as it offers less coverage. A typical insurance policy will cover your home from more than 16 threats, while FAIR only provides coverage against fire, windstorms, vandalism, and riot. Moreover, there's no guarantee your personal items will be covered — this just depends on your state.
Below are FAIR coverage options compared to those of typical homeowners policies:
Does Home Insurance Cover Natural Disasters? | The Zebra
Your home insurance coverage after a natural disaster depends on your location. Most natural disasters, hurricanes, floods, and earthquakes are not covered by homeowners insurance.
How to get FAIR insurance coverage
FAIR is state-specific. Below are the numbers and websites at which you can find eligibility requirements and get a quote. There are also websites with additional information and qualification guidelines for certain risks and programs, like the National Flood Insurance Program.[2]
With changes to federal funding in 2025, we recommend verifying program eligibility and other details directly with the relevant offices.
High-risk insurance companies: alternatives to the FAIR Plan
The FAIR Plan does not provide comprehensive home insurance. Furthermore, it won't be as affordable as standard private insurance. Only consider this option if you’re continually denied home insurance. Before FAIR, consider these steps.
There might be something easy you can do (replacing screens or removing debris) to make your property insurable. In other cases, you might need to replace your roof or erect a fence around your swimming pool.[3]
If your restricted-breed dog is the reason for your coverage denial, speak to your insurance company about removing your dog from the liability portion of your homeowners policy. Not every company will offer this option, but it's worth inquiring about.
Major insurance companies like State Farm, Farmers, and USAA are hesitant to write policies for high-risk customers. Consider local insurance companies and other non-standard providers for home insurance coverage. See our list of the Top Home Insurance Companies that ranks both major and small insurers.
If FAIR is your only option, look for supplemental insurance policies to protect your contents. This means purchasing specific coverage for certain items (jewelry, art, firearms, etc.), buying warranties, or placing your belongings in storage and purchasing insurance from your storage unit company.
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High risk homeowners insurance FAQs:
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
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