Yes, there are insurance agencies that specialize in covering high-risk drivers and properties. These agencies operate in what is commonly called the nonstandard insurance market, which exists alongside the standard market for drivers and property owners with clean records and low-risk profiles. The nonstandard market is designed to provide coverage for individuals or assets that standard insurers consider too risky to insure at their usual rates.
For high-risk drivers, factors that may lead to classification as nonstandard include multiple at-fault accidents, serious traffic violations like DUI or reckless driving, a history of lapses in coverage, or a very low credit score in states where credit is used. Similarly, high-risk properties often include homes with severe structural issues, those in high wildfire or flood zones, properties with certain dog breeds or swimming pools that increase liability, or older homes with outdated electrical or plumbing systems. In these cases, a specialist agency that understands these specific risks and the coverage options available can help secure a policy.
It is important to understand that these specialist agencies do not necessarily offer different types of coverage, but they have access to insurers that focus specifically on nonstandard risks. These insurers often set higher premiums and more restrictive policy terms, such as lower liability limits or higher deductibles, to offset the elevated risk. For example, a high-risk driver might find a policy with liability limits of 15/30/15 (the minimum in many states) instead of higher limits, or a property might require a named-peril policy rather than an all-risk policy.
When working with an agency that specializes in high-risk situations, be prepared for a thorough underwriting process. You will likely be asked for detailed documentation, including a full driving record for drivers, or a home inspection report for properties. The agency should also explain any exclusions or conditions in the policy that are specific to your situation, such as a loss-ratio requirement (e.g., you cannot file a claim within the first six months) or a requirement to mitigate the risk (e.g., install a security system, remove a trampoline).
To find a reputable specialist agency, consider looking for those that are members of professional organizations such as the Independent Insurance Agents & Brokers of America (IIABA) or those that hold certifications in risk management. It is also prudent to verify that the agency is licensed in your state and has a track record of handling claims for high-risk accounts. As with any insurance decision, compare quotes from multiple agencies, but do not compromise on the coverage you need. Always read your policy documents carefully and confirm all details, including limits, deductibles, and exclusions, with your agent before binding coverage.