Home insurance for
"high risk" properties

Is your home "high risk"? Most home insurance companies will place you in that category if you live in an area prone to severe weather or crime, or if your home has old plumbing or a weathered electrical system. In these cases, finding home insurance could prove tricky.

To make property insurance more readily available to people who can't obtain it from private insurers, the federal government established the Fair Access to Insurance Requirements (FAIR) plans in the late 1960s, according to the Insurance Information Institute (III). The plans are operated by the insurance industry and make home insurance available to property owners in the "high risk" category.

FAIR plans often cost more than private insurance and offer less coverage, but for some they offer the only home insurance available. All FAIR plans cover losses due to fire, vandalism, riot and windstorms, according to III.

Your insurance agent can help you determine if you are eligible for coverage by your state's FAIR Plan, or if there are other options for you. Once you have a policy from a FAIR Plan, you would contact your agent or the FAIR Plan's office to file a claim.

The following states offer FAIR plans or assistance in obtaining coverage. In a few states, there is a counterpart to FAIR plans called Beach and Windstorm plans that provide coverage for hurricanes and severe windstorms.