Alternatives to Traditional Homeowners Insurance

Enter your ZIP code to get started

Shield

Free. Simple. Secure.

Updated: June 23, 2025

Advertising & Editorial Disclosure

Key Takeaways

blueCheck icon

If you can't get traditional homeowners insurance, consider alternatives like FAIR plans, insurers specializing in high-risk policies and small regional providers.

blueCheck icon

High-risk homes, which often require home insurance alternatives, may include those in disaster-prone areas, older homes with outdated systems or unoccupied properties.

blueCheck icon

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.

Compare Home Insurance Rates

Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Three Best Alternatives to Homeowners Insurance

When traditional homeowners insurance isn't an option, alternatives include FAIR plans, high-risk insurance providers and small regional insurers. These alternatives can offer the protection you need, ensuring your home is covered against unforeseen events.

Even though traditional insurance can be challenging to obtain, there are strategies to help ensure your home remains financially protected. Adequate insurance coverage safeguards your financial investment and provides peace of mind in the event of damage to your home.

FAIR Plans

FAIR Plans, or Fair Access to Insurance Requirements Plans, provide essential coverage for homeowners who have been denied insurance by private companies. This alternative to homeowners insurance is managed by state insurance pools and offers basic protection against specific perils.

Homeowners living in high-risk areas and those who have been denied coverage by multiple insurance companies can benefit the most from FAIR Plans. Coverage typically includes:

    fire icon

    Fire Damage

    Core protection against all fire-related damages, including destructive wildfires — a primary coverage that FAIR Plans were specifically designed to provide in high-risk areas where standard insurers may be reluctant to offer policies.

    windstorm icon

    Windstorm Damage

    Coverage for wind damage varies by state, with some FAIR Plans limiting or excluding this coverage in high-risk coastal zones. Many coastal states operate separate windstorm insurance pools specifically for hurricane coverage.

    winterStorm icon

    Hail Damage

    Protection for hail-related property damage, though typically with higher deductibles and more coverage limitations compared to standard insurance policies. Coverage limits and terms vary significantly by state.

    fireworks icon

    Explosions

    Protection against damage from explosions, consistent with coverage found in standard homeowners policies. This covers unexpected incidents involving gas leaks, faulty appliances or other explosion sources.

    houseRebuild icon

    Vandalism and Malicious Mischief

    Essential coverage for intentional property damage in areas where FAIR Plans most commonly operate. This protection helps homeowners in higher-risk neighborhoods maintain financial security despite potential crime exposure.

mglogo icon
MONEYGEEK EXPERT TIP

Since 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.

High-Risk Insurance Providers

High-risk insurance is an alternative to home insurance, specifically for homeowners whose properties are considered too risky for standard insurance companies. These insurers cater to homes with higher chances of damage due to location, construction or previous claims history and offer tailored policies to address those specific risks, often at higher premiums.

Common examples of high-risk homes are:

    earthquake icon

    Homes in Disaster-Prone Areas

    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.

    house2 icon

    Older Homes With Outdated Systems

    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.

    garage icon

    Homes With Previous Claims

    Properties with a history of multiple insurance claims. Insurers consider these homes high-risk due to their track record of frequent claims.

    house icon

    Vacant or Unoccupied Homes

    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.

    mortgage icon

    Homes With Hazardous Conditions

    Properties with structural issues, such as unstable foundations or roofs in disrepair. These conditions pose significant risks that standard insurance might exclude from coverage.

Small Regional Homeowners Insurance Companies

Small regional insurers can be valuable alternatives to traditional homeowners insurance from major companies. These insurers often have a better understanding of the local risks and conditions, allowing them to offer more tailored and potentially more affordable coverage.

Their customer service tends to be more personalized, fostering stronger relationships with policyholders. Additionally, regional insurers may be more flexible in underwriting policies for unique or high-risk properties, making them a viable option for homeowners who struggle to find coverage with larger, national companies.

List of Small Regional Insurers

How to Get Alternative Homeowners Insurance

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:

How to Get a FAIR Plan

Obtaining a FAIR Plan involves several key steps, including providing evidence of insurance denials and contacting your state's FAIR Plan program. Once you have the necessary documentation, you can review the plan details and apply. Here’s how to get started:

  1. 1

    Prepare Documentation of Rejections

    Collect and prepare documentation of insurance denials from traditional insurers to prove eligibility.

  2. 2

    Contact Your State’s FAIR Plan

    Each state has its own FAIR Plan administration. Find contact details for the appropriate office and request application forms.

  3. 3

    Review Plan Details

    Before applying, thoroughly review the FAIR Plan's coverage and exclusions to ensure it meets your needs for basic property insurance.

  4. 4

    Submit an Application

    Complete the application process, including providing details about your property and insurance history.

  5. 5

    Have a Property Inspection

    FAIR Plans typically require an inspection to ensure a property meets basic safety and maintenance standards.

  6. 6

    Finalize Coverage

    If approved, finalize the details of your coverage and make any necessary premium payments to start your policy.

How to Get High-Risk Home Insurance

Here are the steps to follow if you want to get high-risk home insurance for a home in need of repair, an older home or even vacant or unoccupied homes:

  1. 1

    Ask Your Neighbors About Their Insurance Coverage

    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.

  2. 2

    Reach Out to Your Home Insurance Company

    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.

  3. 3

    Shop Around for High-Risk Home Insurance Companies

    Though getting homeowners insurance in high-risk areas is challenging, you can find an insurer by shopping around and requesting quotes from various companies.

  4. 4

    Consider a FAIR Plan

    If you can’t get home insurance in the voluntary market, a FAIR plan in your state might be a good option for coverage.

  5. 5

    Look Into Surplus Carriers

    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.

  6. 6

    Improve Your Home

    If your home needs repairs, making home improvements could remove it from the “high risk” category, making it much easier to insure.

How to Lower Home Insurance Premiums Instead of Seeking Alternatives

To reduce home insurance premiums, consider strategies such as increasing your deductible, improving home security and bundling insurance policies. If you’re looking at home insurance alternatives because traditional policy costs are beyond your budget, these methods can make it more affordable without sacrificing coverage. Opting for traditional home insurance is often better than alternatives as it offers more comprehensive protection.

Here’s how you can get cheap homeowners insurance:

  1. 1

    Increase Your Deductible

    Raising your deductible means paying more out of pocket in the event of a claim, but it can substantially lower your premium. This strategy works well if you have a solid emergency fund to cover potential costs. It also encourages careful maintenance of your home, reducing the likelihood of small, frequent claims.

  2. 2

    Improve Home Security

    Installing security systems, smoke detectors and deadbolt locks can lower your insurance premiums. These improvements reduce the risk of theft and fire, making your home less risky to insure. Many insurers offer discounts for homes with enhanced security features, so investing in these upgrades is worthwhile.

  3. 3

    Bundle Insurance Policies

    Combining your home insurance with other policies, such as auto or life insurance, can lead to substantial discounts. Insurance companies often provide better rates to customers with multiple policies. This saves money and simplifies managing your insurance needs under one provider.

  4. 4

    Maintain a Good Credit Score

    Insurers often use credit scores to determine premiums, with higher scores typically leading to lower rates. Regularly monitor and improve your credit score by paying bills on time and reducing debt. A good credit score reflects financial responsibility, which insurers view as a lower risk.

  5. 5

    Perform Regular Home Maintenance

    Keeping your home in good repair can prevent damage and reduce the need for claims. Regular maintenance includes tasks like inspecting the roof, cleaning gutters and checking plumbing systems. A well-maintained home poses fewer risks, leading to potential premium reductions from your insurer.

  6. 6

    Review and Update Your Policy Annually

    Regularly review your home insurance policy to ensure it accurately reflects your needs and the current value of your home and belongings. Updating your policy can help you avoid paying for unnecessary coverage or missing out on potential savings. Staying proactive with your policy ensures you always get the best possible rate.

Common Homeowners Insurance Discounts

Instead of opting for home insurance alternatives to lower premiums, many homeowners can easily qualify for insurance discounts, such as those for installing security systems and bundling policies. Understanding and taking advantage of these discounts can help you save money while ensuring comprehensive coverage. Here are some of the most common discounts available:

Discount
Description

Security System Discount

Installing security systems, smoke detectors and deadbolt locks can lower your insurance premiums by reducing the risk of theft and fire. Many insurers offer significant discounts for enhanced security features.

Bundling Discount

Combining your home insurance with other policies, such as auto or life insurance, can lead to substantial discounts. 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. Insurers often use credit scores to determine rates, with higher scores typically resulting in discounts.

New Home Discount

Newly constructed homes often qualify for lower insurance rates. Newer homes are usually built with modern materials and up-to-date safety standards, reducing the risk for insurers.

Nonsmoker Discount

Homeowners who do not smoke can receive discounts as their homes have a lower risk of fire. Many insurance companies offer reduced rates to nonsmokers.

Traditional Homeowners Insurance Alternatives: Bottom Line

Finding the best alternative to traditional homeowners insurance depends on your unique needs. Providers consider factors like property type, location, risk exposure and coverage preferences. To find the most affordable and flexible options, compare quotes from multiple home insurance providers.

Compare Home Insurance Rates

Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Home Insurance Alternatives: FAQ

Finding suitable alternatives to homeowners insurance can be challenging, especially for those who have been denied coverage or own high-risk properties. Below are answers to frequently asked questions to help you understand the alternatives to traditional home insurance.

What are the alternatives to traditional homeowners insurance?

What should you do if you can't get any type of homeowners insurance?

What types of properties are considered high-risk?

Best Alternatives to Home Insurance: Our Review Methodology

MoneyGeek 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 aim to give a reliable estimate of what homeowners can expect to pay — showing why it’s important to compare rates.

Homeowner Profile

For our analysis, we created a sample homeowner profile with the following characteristics:

  • Good credit score (769–792)
  • Home constructed in 2000
  • Wood-frame construction
  • Composite shingle roof

Homeowners Insurance Coverage Details

Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:

  • $250,000 in dwelling coverage
  • $125,000 in personal property coverage
  • $200,000 in personal liability coverage
  • $1,000 deductible

We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.

Traditional Home Insurance Options: Related Pages

About Mark Fitzpatrick

Mark Fitzpatrick headshot

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!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

Read Full Bio »

MoneyGeek Address:1325 Howard Ave, Suite 338
Burlingame, CA 94010

MoneyGeek Phone:904-878-4335

About MoneyGeekPressPrivacy PolicyTerms of UseSitemap
Copyright © 2025 MoneyGeek.com. All Rights Reserved