Once you're deemed untouchable by the State Farms and Allstates of the world, you may be stuck getting coverage from your state's high-risk pool or a "surplus lines" insurance company, which means paying higher premiums or settling for skimpier coverage -- or probably both.

FAIR plans

In 32 states and the District of Columbia, homeowners who can't get coverage in the standard market can turn to their state's high-risk pool, often called a FAIR plan. (FAIR stands for Fair Access to Insurance Requirements.) Premiums are often reasonable; in California, for example, the average policy costs $350 a year. But the policies don't cover everything a standard homeowners policy does. California's covers fires and windstorms, but not crime or personal liability.

Some states offer full coverage, for much higher premiums. In Florida, an all-risk, replacement-cost policy on a $200,000 home costs about $1,700 a year with the Citizens Property Insurance Corp., the newly renamed high-risk pool. But that's better than insuring with a private high-risk carrier that might charge $2,600 for similar coverage, says Norman Sapp, an agent in St. Augustine. State risk pools may have other limitations. Missouri, for instance, caps coverage through its FAIR plan at just $100,000.

Surplus lines

If your state does not have a FAIR plan or if that coverage isn't suitable, you can generally get an all-risk policy through a nonstandard, or "surplus lines" carrier. However, deductibles may be high (in some cases as high as $5,000) and costs steep. In California, an all-risk policy with a surplus-lines carrier can cost two to three times as much as the same coverage from a regular insurer, says Jim Armitage, an agent in South Pasadena.

Persistence pays

If you shop hard, you may be able to stay out of the high-risk market. Ray and April Thornton of Tuscaloosa, Ala., were dropped by Allstate last year after filing three claims in three years (after a tornado, a windstorm and a hailstorm). Most agents quoted them annual premiums of about $2,400 for a fire policy on their $215,000 home. But, at last, Ray found an agent for Alfa Insurance, a regional carrier, willing to petition management for a better deal. Ultimately, the Thorntons got full coverage for about $550, albeit with a $2,000 deductible.

The Solid Protection -- for a Price

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