On the list of expenses prospective home buyers worry about, homeowners insurance ranks low. Buyers are more likely fretting about their down payment, closing costs, and potential monthly payment than they are insurance rates. But while they may not be thinking about insurance, they’re going to need it. First off, it’s typically required if you have a mortgage. Secondly, owning an uninsured home means you’re one weather-based disaster from financial ruin. Put simply, it’s not worth the risk. But some homeowners take it. In fact, a recent study found 13.6 percent of U.S. homes are uninsured – and it may be due to rising costs. Homeowners insurance prices increased 33 percent between 2020 and 2023 and now average $2,530 per year nationally. Of course, where you are determines the price and could push it much higher. That’s why it’s vital that home buyers know what they’re likely going to be paying for insurance well in advance of buying a home. (source)
