Homeowner’s insurance isn’t just a box to check at closing — it’s essential protection for what’s likely your biggest investment. While no one wants to imagine the worst-case scenario, the right coverage offers peace of mind and financial security when it matters most.
Here’s what a standard policy typically covers:
- Repairs and Rebuilding: If your home is damaged by fire, storms, or other covered events, insurance can help cover the cost to repair or even rebuild.
- Personal Property Protection: Many policies also cover personal belongings — furniture, electronics, clothing — if they’re stolen or damaged.
- Liability Coverage: If someone is injured on your property, your policy may help cover medical expenses or legal costs.
A Recurring Expense, Not a One-Time Cost
Your first premium is typically included in your closing costs, but this isn’t a one-and-done payment. Homeowner’s insurance is an ongoing expense that should be built into your long-term budget.
Why Premiums Are Going Up
Insurance rates have been climbing in recent years. According to Insurance.com, there are several key drivers:
- An increase in severe weather events and wildfires.
- Fewer insurance providers in high-risk areas.
- Rising claims outpacing past premium adjustments.
- Higher costs for construction materials and labor
What You Can Do
While insurance is non-negotiable, you do have some control over the cost. Here are a few smart strategies:
- Shop Around: Rates can vary significantly by provider.
- Ask About Discounts: Alarm systems, smoke detectors, or bundling with auto insurance can reduce your premium.
- Review Coverage Carefully: Make sure you’re not over- or under-insured for your situation.
Homeownership comes with more than just a mortgage. Homeowner’s insurance is a key part of protecting your investment and your peace of mind. With premiums on the rise, taking a thoughtful, informed approach can help you find the right coverage at the right price.