Purchasing homeowners insurance is a vital step in safeguarding your investment, but not all homes are created equal when it comes to insurance. Some homes fall into the category of “hard-to-place homes,” presenting unique challenges for coverage due to a higher risk profile. In this blog, we’ll explore the reasons why some homes are harder to insure and provide practical steps to improve your home’s insurability. Let’s dive into the world of ‘hard to place’ homes and learn how to protect your property.
Common Reasons for Homes to Be Considered ‘Hard to Place’
Natural Disasters
Homes in disaster-prone areas, like those vulnerable to wildfires, earthquakes, or hurricanes, can be challenging and expensive to insure. Consider installing weather-resistant additions to fortify your home’s defenses, such as reinforced roofing and shutters.
Vacation Homes
If your property is a vacation home, it may sit unattended for extended periods. Protect your investment by installing a security system that alerts you to any damage or incidents, even when you’re not present.
Dangerous Features
Homes with potential liabilities like playsets, pools, trampolines, or proximity to natural hazards must take precautions. Install appropriate safety measures like fencing to mitigate risks and prevent unauthorized access to your property.
Property Age
Older homes may have outdated electrical or plumbing systems, and unique architectural features that could be costly to replace. Keep your insurance representative informed about any home improvements to facilitate the assessment process for insurers.
FAIR Plans
: In some cases, even with proactive measures, you may struggle to find coverage in the standard insurance market. However, each state offers home insurance programs known as Fair Access to Insurance Requirements (FAIR) plans. These plans serve as a last-resort option, available only to homeowners who have actively sought out other insurance options and made efforts to limit potential liabilities. For detailed information about FAIR plans in your state, consult the National Association of Insurance Commissioners’ website.
Securing insurance for ‘hard to place’ homes can be a challenge, but with the right approach, it’s not insurmountable. By understanding the unique risk factors associated with your property and taking proactive steps to mitigate them, you can increase your chances of finding suitable coverage. If you’re facing difficulties or have questions about insuring your home, don’t hesitate to reach out to the experts at Carlson Insurance Group.
