High Risk Dwelling

What is a high risk dwelling? It could be a home that is vacant or is in poor state of repair and maintenance. A high risk dwelling could have old wiring of 60 amps and possibly galvanized plumbing.

What is the insurance implication of a high risk dwelling? This is likely to result in higher premium and fewer choices of possible insurance companies.

The best answer for this situation is if you can repair or replace the matter that is causing this classification then it is wise to do so. This is especially true with the government giving tax incentives for home renovation and increasing your energy efficiency.

The insurance answer is that you will pay more for less. The premiums are very high and the coverage is limited for a dwelling that has been labeled high risk.

It can be that you have more three mortgages. You may have had bad luck with a high frequency and severity of claims. Good risk management and/or stability will slowly rectify the situation. Find out from your adviser when will your situation change. Be sure to ask for a re-market at this time.

Ask for insurance answers from your agent or broker. As if there is more then one insurance company that can provide your coverage. If so, then request quotes. You might check to see another brokerage might have more high risk dwelling markets to shop then your current broker.