When you are budgeting for a home, you need to include homeowner’s insurance in your budget. But lately, those premiums are taking up more budget than many homeowners bargained for.
According to data outlined in a recent article from REALTOR® Magazine, the average annual homeowner’s insurance premium is $1,398. That is an increase of 4 percent year-over-year—and 11.4 percent since 2017.
There are a number of factors driving rising insurance premiums, from an increase in natural disasters to rising material costs—and, according to the article, many insurance companies are predicting higher premiums in the coming years.
So, what does this mean for you? If you want to buy a home, homeowner’s insurance is a non-negotiable. If you have a mortgage, your lender will expect you to carry it. And even if you don’t have a loan on your property, having insurance to protect your asset is critical. So, understanding the current costs of homeowner’s insurance (and where those costs may be headed) can help you better plan and budget for your home purchase—and can help to avoid sticker shock when you purchase your homeowner’s insurance policy.