Most Expensive Homeowners Insurance: Who Tops the List (2025 Update)
Explore which companies offer the most expensive homeowners insurance in 2025, why the rates are high, and practical tips to avoid overpaying for your policy.
High Risk Home Insurance: What It Is and How to Save
If your house sits near a floodplain, a coastal cliff, or a high‑crime neighbourhood, you’re probably paying more for insurance. That’s because insurers label those properties as "high risk" and charge extra to protect them. But a higher price tag doesn’t have to mean you’re stuck with a bad deal.
First, understand what makes a home high risk. Common factors include flood exposure, fire‑prone surroundings, poor building materials, older construction, and a history of claims. Some insurers also look at the distance to the nearest fire station or the crime rate in the area. Knowing the exact reasons for the risk rating helps you target the right changes.
Key Coverage Areas You Can’t Skip
Even in a risky location, you still need the basics: building cover, contents cover, and liability cover. Building cover replaces the structure if it’s damaged by fire, flood, or wind. Contents cover protects your belongings inside the home. Liability cover shields you if someone gets injured on your property and decides to sue.
Many high risk policies add optional extras like flood‑specific cover or “deductible waivers” for natural disasters. These can be useful, but they also raise premiums. Check whether the extra you’re paying for actually matches the threats you face. If flood risk is low, you might drop that add‑on and still be safe.
Practical Ways to Lower Your Premium
1. **Upgrade the property** – Installing a fire‑resistant roof, modern electrical wiring, or a security system can move your home from a high‑risk bucket to a lower‑risk one. Insurers love visible improvements and often reward them with discounts.
2. **Shop around** – Not all insurers price risk the same way. Some specialize in high‑risk homes and offer competitive rates. Use comparison sites, ask for quotes from at least three companies, and compare what’s covered.
3. **Increase your excess** – A higher deductible (the amount you pay before insurance kicks in) lowers your monthly premium. Just make sure you can afford the excess if a claim arises.
4. **Bundle policies** – Many providers give a discount when you bundle home, car, and pet insurance. It simplifies billing and can shave off a decent percentage.
5. **Maintain a claim‑free record** – Every claim you make signals higher risk. If possible, handle minor repairs out of pocket. A clean claims history can earn loyalty discounts over time.
6. **Ask about the 80/20 rule** – Some policies follow the 80/20 coinsurance principle: the insurer pays 80%, you cover 20% of a claim. Understanding this split helps you decide the right level of cover and avoid surprise out‑of‑pocket costs.
Lastly, read the policy wording carefully. Look for exclusions that could leave you exposed, such as “no cover for flood damage unless you buy the separate flood rider.” If something isn’t clear, call the insurer and ask for a plain‑English explanation.
High risk home insurance doesn’t have to be a financial nightmare. By knowing why your home is classified as risky, choosing the right coverage, and taking a few smart steps, you can protect your property without overpaying. Keep these tips handy, revisit your policy each year, and stay on top of any changes in local risk factors. Your home is worth the effort.
