Homeowners Insurance for Homes in Need of Repair

Yes, you can purchase homeowners insurance for homes in need of repair, but insurance companies generally view these properties as higher risk. Therefore, your options for insurers may be limited, and premiums will likely be higher compared with homes in good condition. These policies also might have more exclusions and limitations. For example, they might not cover damages that are a direct result of the existing disrepair.

Because of the increased risk, insurance companies may require a home insurance inspection before issuing a policy. Based on the inspection, they might ask for certain repairs to be made as a condition for providing coverage.

Finding insurance for homes in need of repair requires more effort but is achievable. Start by contacting insurance agents or brokers who specialize in high-risk properties or non-standard insurance. Then compare homeowners insurance quotes from various providers to find the best fit for your needs and budget.

Getting homeowners insurance for homes in need of repair may not always require a new inspection, particularly if a recent inspection was conducted during the purchase or acknowledged by a previous insurer within the last year. However, for homes with evident repair needs, insurers often require an inspection to assess risk. Check with your insurer to understand if an inspection is mandatory in your situation.

When traditional homeowners insurance is difficult to secure for homes in need of repair, specialized options are available. The Fair Access to Insurance Requirements (FAIR) Plan and renovation coverage provide solutions for these properties. These tailored insurance solutions cater specifically to properties that don't fit the standard underwriting criteria.

The FAIR Plan is a state-mandated program designed to provide insurance to properties that are considered high-risk and often rejected by standard insurers.

For instance, if you live in a coastal area where homes are frequently denied coverage due to storm risk, you can obtain insurance through the FAIR Plan. It's most beneficial for homeowners who have been repeatedly turned down by traditional insurers due to the condition or location of their property.

Renovation coverage is insurance specifically designed for homes undergoing repairs or renovations. It covers risks associated with the renovation process.

For example, during a major kitchen remodel, if a pipe bursts and causes water damage, renovation coverage would help cover the costs. This coverage is ideal for homeowners actively improving or repairing their homes, particularly when the work involves significant structural or system updates.

Homes in need of repair can get homeowners insurance through several options, including standard and specialized policies tailored to higher-risk properties. While coverage may be limited and premiums higher, solutions like FAIR Plans can help you stay protected while addressing repairs. Contact your insurer to find the best fit for your situation.

We answered frequently asked questions to help you navigate getting specialized policies, providing insights into options like FAIR Plans and the potential for insurance without a new inspection.

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.