What You Need to Know About Homeowner’s Insurance

Homeowner’s insurance is essential for protecting your biggest investment—your home. While no one likes to imagine worst-case scenarios, having the right coverage gives you peace of mind, knowing you’re covered if something unexpected happens. Here’s how it can help.

• Helps with Repairs and Rebuilding: If your home gets damaged by fire, storms, or other covered events, your insurance steps in to cover the cost of repairs—or even a full rebuild if needed.

• Covers Your Stuff: Your policy doesn’t just protect your home—it can also help replace things like furniture, electronics, and clothing if they’re stolen or damaged.

• Offers Liability Protection: If someone gets hurt on your property, your homeowner’s insurance can help with medical bills or even legal costs.

At the end of the day, it’s all about peace of mind. Knowing you’re covered if something unexpected happens means less stress and more confidence in protecting your home—one of your biggest investments.

Your first insurance payment is covered in your closing costs, but it’s something you’ll need to budget for even after you move in. Since it’s a recurring expense, it’s important to plan for it as part of homeownership.

Here’s what you should know to make sure you’re budgeting for this key part of owning a home.

Insurance Costs and Claims Are Going Up

Lately, insurance costs have been on the rise. According to Insurance.com, there are four main reasons why premiums are going up.

• Extreme weather and wildfires are happening more often, leading to more insurance claims.

• Some insurance companies are leaving high-risk areas, which means fewer options for homeowners in certain states.

• Previous rate hikes haven’t kept up with the growing number of claims.

• Rising material and labor costs have made rebuilding and repairs more expensive.

Simply put, disasters are becoming more common, repair costs are rising, and insurance companies are adjusting their rates to keep up. Data from ICE Mortgage Technology shows just how much the average yearly premium has increased over the past decade (see graph below).

How You Can Take Action

Homeowner’s insurance is essential for protecting your home and investment. But with costs going up, it’s important to do your research and find the right balance between solid coverage and a price that works for you.

Homeowner’s insurance rates can vary a lot depending on where you live, your provider, and the coverage you choose. Take the time to shop around and compare quotes before making a decision. And be sure to ask about discounts—things like having a security system or bundling with your auto insurance could help you save.

Bottom Line

When buying a home, it’s important to think beyond just your mortgage payment—homeowner’s insurance should be part of your budget too. It offers valuable protection against the unexpected, and while costs are going up, there are ways to find the best deal.

What worries you most about budgeting for homeownership? Let’s chat and make sure you’re on the right track!