What Is "High Risk" Insurance And Who Needs It?

What Is "High Risk" Insurance And Who Needs It?

Did you know that “high risk” insurance is not just for reckless and risky drivers? Most people don’t know that it can also apply to good drivers and even some homeowners.

High-risk insurance (also known as non-standard coverage) is for those who aren’t eligible for coverage from standard insurance companies. Here are 6 common reasons why someone may be considered high-risk:

1. Your policy was cancelled because you didn’t pay your premium.

Not paying your premium is one of the most common ways to get your insurance policy cancelled. Cancellations will show on your record which may cause you to no longer qualify for standard insurance.

2. You’ve had multiple driving convictions or multiple accidents.

If you have dangerous driving habits, many tickets and are frequently involved in accidents, you may no longer be eligible for standard car insurance. This could also cause your existing policy to be cancelled.

3. You’ve made multiple claims.

If you’ve made several claims on your insurance policy and your current insurer decides that they can no longer provide you coverage, you’ll most likely need to start looking for a new policy with a high-risk insurance company. 

4. Your home is vacant.

The term “vacant” usually refers to when a house hasn’t been lived in for an amount of time set by your insurer (six months, for example). This usually happens when home owners have moved out and don’t plan to return, or when there are newly built houses and the owners have not moved in yet. 

5. You want to insure a stand-alone rented dwelling – in other words, you’re looking to insure your rental property, but not your main residence. 

An example of this situation is if you decide to move back in with your parents and rent out your own house. Your house would be considered a “stand-alone rented dwelling” since you plan to rent it out and have no other home to insure. Most standard insurance companies will not insure stand-alone rented properties unless you also purchase a policy for your own residence. 

6. You’ve taken out multiple mortgages on your home.

Homeowners who have multiple mortgages usually don’t qualify for standard home insurance – this also includes mortgages from private lenders.

To learn more about high-risk insurance, speak to one of our brokers today at 905-696-9090 or This email address is being protected from spambots. You need JavaScript enabled to view it. 

Source: Economical


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