How to Get Home Insurance in High-Risk Areas

Not insuring a home against potential threats isn’t an option for most people. If there’s a mortgage, the lender requires it. If there isn’t, homeowners stand to lose their most valuable asset if they fail to protect it.

But getting home insurance isn’t as easy for some as it is for others. For homeowners in high-risk areas, it can be difficult to find companies willing to provide coverage. And if they do, policy premiums could be astronomical.

There are a few key characteristics that categorize homes as high risk. Those include weather, crime, how the home is used, its age and condition, and even its proximity to a fire station. The greater the odds homeowners will make a claim, the harder it is to find coverage.

Although it’s more challenging to find insurance for homes in high-risk areas, it’s not impossible. Here are a few ways homeowners can find coverage.

Find Flexible Use Coverage

Insurance companies consider how homes are used when quoting policy rates. It’s just one of the many factors in their calculations. Those determine what they’ll insure, how much it will cost, and whether they’ll insure it at all.

Insurance companies will ask some key questions. Do the homeowners live in the house full time? Is it a second home that isn’t always occupied? Do they rent it out some or part of the time? Is it used as a business location? Is the situation a combination of any or all of these?

Homeowners may be unable to find a single policy that will provide coverage for more than one of these scenarios. That all comes down to risk. Risk is lower in an owner-occupied private home than in one used as a timeshare or homestay business.

When there’s potential for more than a single home use, homeowners should shop around for home insurance that affords some flexibility. This type of policy doesn’t exclude certain uses of the home. And homeowners don’t have to worry about paying for multiple policies to maintain protection if they alter how they use their home.

Homeowners may juggle the use of their homes as life changes. But if they take the time to search, they may find they don’t have to juggle companies, policies, and exclusions. That’s the real trick to finding the right insurer.

Get a FAIR Plan

If homeowners are denied coverage by multiple insurers based on risk factors, they should explore Fair Access to Insurance Requirements Plans. As of 2025, 34 states and the District of Columbia offer such plans. They’re designed to provide essential coverage when all else fails.

Enrollment in these pooled risk plans is growing rapidly, largely due to climate change-related issues. The proliferation of wildfires, hurricanes, tornadoes, flooding, and other events have wreaked havoc on the insurance industry. Many companies are no longer offering coverage in high-risk areas, leaving homeowners exposed.

The inability to find coverage is complicated by lender requirements that full coverage be intact to protect the lienholder’s investment. Coupled with the number of companies leaving the market, states have stepped in with FAIR Plans. This safety net is for those with and without mortgages, so long as they meet certain requirements.

Although states have unique rules, there are some similarities. For example, most demand proof of coverage denial from multiple insurers. There cannot be claims or tax liens against the property. And if age or condition of the home is why coverage has been denied, some progress must be made to improve it.

Coverage under FAIR Plans is often risk-specific in nature, such as wind damage, wildfires, or flooding, based on state. FAIR Plans typically cost more than traditional insurance and cover less. But if it’s the only potential coverage, this last resort may be the best one.

Invest in Improvements

Condition is key to the value of items that deteriorate over time, like antiques, art, and collectibles. It’s also key to making insurance coverage more tenable for high-risk properties. Lower the risk and an insurer may bite.

One way to reduce risk is to increase the home’s ability to withstand, for example, the ravages of climate change. Homeowners in hurricane-prone locations might be insurable if they install impact-resistant windows, operable shutters, and hurricane straps. Those in wildfire zones may install fire-resistant roofs and vents, and use noncombustible materials for exterior siding, decks, and other structures.

If the condition of the home is putting it into the high-risk category, homeowners should address it. Rebuilding or repairing unsound foundations, meeting minimum code requirements, and replacing sewage or septic systems may move the needle. Updating old electrical panels and wiring and plumbing may as well.

Sometimes, the location of a home in a high-crime area is why insurance companies won’t insure it. Homeowners can talk to prospective insurers about the impact of safety improvements. Those might include installation of such items as surveillance systems, fencing, gates, bars, and other security measures.

Homeowners should know why insurance companies have denied them coverage. And if those issues can be mitigated by home improvements, they likely will be worth the investment.

Worth the Risk

People buy homes in high-risk areas for all sorts of reasons. They may be close to family, the right schools, jobs, or have the perfect view or climate. And many homeowners can’t afford to sell, buy something in a lower-risk area, and move.

Nonetheless, insuring a home isn’t something to do without. Exploring options like flexible coverage, FAIR Plans, and making improvements to the property are worth the time and effort. It could make the difference between pulling up stakes or keeping them firmly planted.