High-Risk Properties

Many insurance companies have a long list of risk factors when they consider offering home insurance policies. So called ''High Risk” properties can fall into several categories.

Postcode Lottery?
Most underwriters take your postcode as a first point of reference. They may use several sources of information to make an initial judgement about the area your property is in. They may look at the type of residential property typically found in your area, whether the houses are generally privately owned, and also the crime figures for your area.

What about flooding?
A common question that’s asked when taking out home insurance is your proximity to a water course (river, stream or reservoir). They may also ask you about the flooding history of the property. It is important to be honest and accurate; if you provide details about your home that are inaccurate it could render your policy void. If you live, or own property in an area that is at risk of flooding, it’s essential to check that your policy covers you if your home is flooded in the future. It may be tricky to find a provider to cover you, but a specialist insurance company should be able help.

That sinking feeling!
Subsidence is also often considered a high risk factor when insuring a home. If your home has suffered from subsidence in the past, which has already been rectified by underpinning for example, you must make sure a new insurer is fully aware of this. Some insurance companies specialise in insuring homes that have suffered from subsidence and your premium will probably reflect this by being higher than usual.

Other risks
There are other common exclusions than are often applied to home insurance policies because they are considered high risk. These range from earthquakes and hurricanes to wars and terrorism attacks. You must also check what the other named exclusions are on your policy because they can sometimes be surprising and not what you expect, such as flooding, sewer or drainage damage.

Read more in our home insurance guides or get a quote now.