If insurance companies find evidence of pre-determined problems, they might require that you purchase high risk homeowner insurance. While not required by law, most lenders demand that homeowner insurance be in place before approving a mortgage loan. If high risk insurance is necessary, it will usually be more expensive. It helps to be informed about risk factors in advance and make every effort to minimize them.

Insurance companies consider many factors when determining risk. They track claims made by you and whoever owned the property before you. Numerous claims will put you into the high risk category. Other factors are location of the property, condition and age of the property, and credit history. Some carriers refuse to insure properties with unfenced swimming pools, wood burning stoves, and certain breeds of dog.

While high risk homeowner insurance can be expensive, many strategies are available to minimize costs. At Focus Financial Services, we recommend that you shop around for the best possible rates. We provide multiple quotes and rate comparisons from the most competitive insurance providers. Online shopping is the fastest and most reliable method of obtaining speedy quotes

If you raise your deductible from $500 to $1,000, you could save as much as 20-25 percent on your premium. Buy your homeowner and auto insurance from the same provider to take advantage of discounts. Some companies offer discounts for security systems or fire sprinklers. Obtain a copy of your credit report and clear up any disputes to raise your credit score. Limit claims when possible by absorbing costs of small losses. More than one claim within a few years will increase premiums and sometimes cause cancellation of coverage. Let us help you find high risk homeowner insurance at a cost you can afford.