Updated: November 7, 2025
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If you can't get traditional homeowners insurance, consider alternatives like FAIR plans, insurers specializing in high-risk policies and small regional providers.
High-risk homes, which often require home insurance alternatives, may include those in disaster-prone areas, older homes with outdated systems or unoccupied properties.
Increasing your deductible and improving home security are effective strategies for lowering your premiums if you don’t want to opt for home insurance alternatives.
Homeowners insurance alternatives include FAIR plans, high-risk specialty insurers and small regional carriers when traditional coverage isn't available. These options provide property protection against fire, theft and weather damage but typically cost more and offer more limited coverage than standard homeowners policies.
Coverage availability, terms, and pricing vary by state and individual circumstances. Consult with licensed insurance professionals for guidance specific to your situation.
FAIR Plans (Fair Access to Insurance Requirements Plans) provide essential coverage for homeowners denied insurance by private home insurance companies. State insurance pools manage these plans and offer basic protection against specific perils, though coverage is more limited than standard homeowners policies.
Homeowners in high-risk areas and those denied coverage by multiple insurers use FAIR Plans. Coverage includes:
FAIR Plans provide comprehensive fire damage protection, including wildfire coverage. These plans were designed primarily for high-risk fire areas where standard insurers refuse coverage.
Wind damage coverage varies by state, with some FAIR Plans excluding windstorm protection in coastal zones. Many coastal states operate separate hurricane insurance pools for wind coverage.
FAIR Plans cover hail damage but impose higher deductibles and stricter coverage limitations than standard homeowners policies.
FAIR Plans cover explosion damage from gas leaks, faulty appliances and other explosion sources with coverage similar to standard policies.
Intentional property damage is covered by FAIR Plans, providing essential protection in higher-risk neighborhoods where these plans commonly operate.
Because FAIR Plans are only an alternative to traditional homeowners insurance, they often provide limited coverage compared to standard homeowners insurance policies and focus primarily on certain perils. They typically do not cover personal property loss or liability coverage for injuries or damages to others on your property.
FAIR Plans are not available in all states. Check with your state insurance department for availability and specific program details. Coverage limits and deductibles vary by state and may be higher than traditional policies.
FAIR Plan applications are straightforward but require preparation. You must prove traditional insurers denied you coverage before applying to these state-run programs for high-risk properties.
Make sure your state offers a FAIR Plan and gather proof that at least two standard insurers declined you. Collect basics about your home (age of roof, electrical, plumbing), recent inspection reports and clear exterior/interior photos.
Apply through your state’s FAIR Plan website or have a licensed agent submit it for you. Choose proposed coverage limits and deductibles, and disclose any known issues so there are no surprises later.
Most FAIR Plans schedule an inspection to verify condition and risk. Complete any mandatory repairs, send proof and pay the first premium to bind coverage, then revisit the standard market once improvements are done.
High-risk insurance covers homeowners whose properties are too risky for standard insurance companies due to location, construction or previous claims history. For these properties, high-risk insurers provide specialized coverage at higher premiums than standard policies.
Common examples of high-risk homes are:
Properties located in regions frequently affected by natural disasters such as hurricanes, wildfires or floods. These homes are at a higher risk of sustaining significant damage, requiring specialized coverage.
Houses with antiquated electrical, plumbing or heating systems that increase the likelihood of fire or water damage. Insurance providers see these outdated systems as potential hazards.
Properties with a history of multiple insurance claims. Insurers consider these homes high-risk due to their track record of frequent claims.
Houses that remain vacant for extended periods are more susceptible to vandalism, theft and unnoticed maintenance issues. The lack of regular occupancy increases the risk profile, necessitating specialized insurance.
Properties with structural issues, such as unstable foundations or roofs in disrepair. These conditions pose significant risks that standard insurance might exclude from coverage.
Applying with a high-risk insurer is often more flexible than a state FAIR Plan, but it still requires preparation and honesty about your home’s condition. These carriers specialize in properties that don’t meet standard underwriting, so knowing what to expect can help you secure coverage more smoothly.
Look for insurers or brokers that focus on high-risk or hard-to-insure properties. Have information ready about your home’s systems, past claims and any repairs or upgrades that reduce risk.
Reach out to multiple carriers for quotes, either directly or through an agent who works with specialty markets. Be transparent about your property’s condition, as honesty upfront can prevent claim issues later.
Compare coverage limits, exclusions and costs carefully against your current needs or past policy. Complete any repairs the insurer requires, then sign and pay your first premium to activate the policy.
Small regional insurers serve as homeowners insurance alternatives to major national companies. These local insurers understand regional risks better and provide more personalized service than large carriers.
Regional insurers accept unique properties and high-risk homes that major companies reject, offering coverage when standard options aren't available.
List of Small Regional Insurers
Even if conventional policies are out of reach, you can opt for home insurance alternatives with some form of coverage to safeguard your investment and peace of mind. Here are ways to get alternative home insurance policies:
FAIR Plan applications need proof of insurance denials from multiple companies and contact with your state's program.
Collect and prepare documentation of insurance denials you received from traditional insurers.
Find contact details for your state's FAIR Plan administration.
Check the FAIR Plan's coverage and exclusions to make sure it meets your needs for basic property insurance.
Complete the application process, including providing details about your property and insurance history.
FAIR Plans require an inspection to ensure a property meets basic safety and maintenance standards.
If approved, finalize the details of your coverage and make any necessary premium payments to start your policy.
There are steps to getting high-risk home insurance for a home in need of repair, an older home or even vacant or unoccupied homes:
If your home is high-risk because of its location, your neighbors may have valuable insights. They can help you find a high-risk house insurance company that will cover your property.
If you’re buying a new home that’s considered high risk, ask your current insurance agent if they can cover it or if they know of a company that can.
Though getting homeowners insurance in high-risk areas is challenging, you can find an insurer by shopping around and requesting quotes from various companies.
If you can’t get home insurance in the voluntary market, a FAIR plan in your state might be a good option for coverage.
Surplus lines insurance carriers specialize in high-risk and high-value homes that other insurers won’t cover. However, be aware that this type of coverage may be relatively expensive.
If your home needs repairs, making home improvements could remove it from the “high risk” category, making it much easier to insure.
There are ways to get cheap homeowners insurance,
Raising your deductible means paying more out of pocket in the event of a claim, but it can lower your premium.
Installing security systems, smoke detectors and deadbolt locks can lower your insurance premiums.
Combining your home insurance with other policies, such as auto or life insurance, can lead to savings.
Insurers often use credit scores to determine premiums.
Some states limit or prohibit the use of credit scores in insurance pricing.
Keeping your home in good repair can prevent damage and reduce the need for claims.
Regular policy reviews makes sure your home insurance reflects your needs and current property values.
Insurance discounts for security systems and bundled policies reduce premiums for most homeowners.
Discount | Description |
|---|---|
Security System Discount | Installing security systems, smoke detectors and deadbolt locks can lower your premiums. |
Bundling Discount | Insurance companies provide better rates to customers who hold multiple policies with them. |
Good Credit Discount | Maintaining a good credit score can lead to lower insurance premiums. |
New Home Discount | Newly constructed homes often qualify for lower insurance rates. |
Nonsmoker Discount | Homeowners who do not smoke can receive discounts as their homes have a lower risk of fire. |
Senior Citizen Discount | Some insurers provide discounts for older adults, recognizing their lower-risk profiles. |
Claim-Free Discount | Maintaining a claims-free record can lead to lower premiums. |
Your property type, location, risk level and coverage needs determine which alternative insurance options work for you and what you'll pay. Get quotes from at least three insurers to find the most affordable coverage.
Getting homeowners insurance gets harder when you own a high-risk property or have been denied coverage. These FAQ answer common questions about your insurance options when traditional policies aren't available.
Alternatives to traditional homeowners insurance include FAIR Plans, high-risk insurers and small regional insurers. Regional insurers understand local risks better and provide more tailored coverage than major national companies.
For uninsurable properties, improve your home's security, maintenance and structural integrity to reduce risk factors. With improved conditions, consult insurance agents specializing in high-risk properties for coverage solutions.
High-risk properties include homes in disaster-prone areas, older homes with outdated systems, properties with multiple claims history, vacant homes and those with hazardous conditions like unstable foundations or damaged roofs.
Understanding what homeowners actually pay for insurance helps you budget accurately and recognize whether quotes you receive fall within normal ranges or represent overpricing. We built this analysis to show you what typical coverage costs across different locations and providers, demonstrating why comparing rates matters for finding affordable protection.
We analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. By considering different locations and companies, we provide reliable estimates of what you can expect to pay based on standard coverage and common home characteristics.
We created a sample homeowner profile with a good credit score (769-792), a home constructed in 2000, wood-frame construction, and a composite shingle roof. This represents typical homeowner characteristics that insurers use as baseline risk factors when calculating premiums.
Unless otherwise specified, we collected quotes using $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in personal liability coverage, and a $1,000 deductible. These coverage limits reflect what most homeowners need to adequately protect their property and assets.
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, increasing limits to $1 million in dwelling coverage, $500,000 in personal property coverage, and $1 million in liability coverage. High-value homes require different underwriting approaches and often need specialty insurers willing to write policies beyond standard carrier limits.
This methodology provides you with realistic cost expectations for both standard and high-value homes. Actual rates may vary significantly based on your individual circumstances, location, and insurer underwriting criteria. Understanding typical costs across coverage tiers helps you evaluate whether the quotes you receive are competitive and whether your current coverage adequately protects your home's replacement cost and your personal assets from liability claims.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
