What is Difficult to Place Homeowners Insurance?
Difficult to place homeowners insurance is designed for properties that don’t qualify for standard home insurance policies. Insurers may consider a home “difficult to place” due to its location, age, construction type, claims history, or occupancy status. This type of coverage ensures homeowners can still protect their property, even when traditional carriers decline coverage.
Who Needs It
This insurance is typically needed by:
- Homeowners with multiple past claims
- Properties in high-risk areas (wildfire, flood, hurricane zones)
- Older or poorly maintained homes
- Vacant or seasonal homes
- Homes with unique building materials or construction
It’s also useful for homeowners whose policies have been non-renewed or canceled by a standard insurance company.
What It Typically Covers
Difficult to place homeowners insurance can offer similar protections to standard home policies, such as:
- Dwelling coverage for the structure
- Personal property coverage
- Liability protection
- Loss of use if the home becomes uninhabitable due to a covered event
Coverage terms may vary depending on the insurer and the specific risks associated with the property.
Common Exclusions and Limitations
These policies may come with higher deductibles and more exclusions. Common exclusions include:
- Flood or earthquake damage (unless specifically added)
- Wear and tear or lack of maintenance
- Intentional damage
Some policies may limit coverage for certain high-risk items or impose caps on claim payouts.
Factors That Influence Cost
Several risk-related factors can affect the cost of difficult to place homeowners insurance, including:
- Property age and condition
- Location risk (fire zones, coastal areas, etc.)
- Claims history and credit score
- Security features and safety upgrades
Because these homes present higher risks to insurers, premiums are generally higher than standard policies.
Proof of Insurance and Compliance
Most mortgage lenders require proof of homeowners insurance, even for difficult to place properties. Some states also have minimum requirements for home insurance. Be sure to check with your lender and local regulations to stay in compliance.
How to Get a Quote
Getting coverage for a high-risk home may take extra steps, but options are available. Work with an experienced agent who understands non-standard policies. To start, get a quote today.
Frequently Asked Questions
What makes a home "difficult to place" for insurance?
Factors like location in a high-risk area, past claim history, or the home's condition can make it hard to insure through standard carriers.
Can I get coverage if my previous insurer dropped me?
Yes. Specialized policies are available even if you've been canceled or non-renewed by a prior insurer.
Is this insurance only for old homes?
No. While older homes are often included, newer homes with unique risks may also need difficult to place coverage.
Does this include liability protection?
Yes, most policies include liability coverage, but the limits and conditions may differ from standard policies.
How do I improve my chances of getting insured?
Upgrading safety features, repairing known issues, and maintaining the property can help improve insurability.
Still have questions? Talk to a local insurance expert.