Welcome! Whether you’re reading this with your morning coffee or winding down after a long day, we’re glad you’re here—because we’re diving into a topic that affects every homeowner: insurance.
Now, we know what you might be thinking: “Insurance? Really?” But stick with us—this may be the most important “boring” topic you ever learn about.
A Truth Worth Remembering:
No one loves insurance... until they need it.
That’s why we’re spending time today talking about homeowners insurance—not just to check a box, but to help you make sure you’re truly protected.
What We’ll Cover
In this guide, we’ll walk you through:
- The building blocks of homeowners insurance
- Gaps in coverage that could leave you vulnerable
- Tips for claims and documentation
- Trends shaping the future of insurance
Why Homeowners Insurance Matters
Think of homeowners insurance as a financial safety net for your biggest investment. It’s easy to focus on decorating, remodeling, or home improvements—but what happens if disaster strikes? Having the right coverage gives you peace of mind that if the worst happens, you’ll have help getting back on your feet.
Breaking Down Coverage: What You’re Really Paying For
Homeowners insurance is made up of key components that protect different parts of your home and life. Here’s a quick overview:
Part A – Dwelling Coverage
Covers the structure of your home. Kicks in if your house is damaged or destroyed by fire, storms, or other covered events.
Think: the cost to rebuild your home—not the market value.
Part B – Other Structures
Covers detached garages, sheds, fences, and other structures on your property that aren’t part of the main home.
Part C – Personal Property
Protects what’s inside your home:
- Furniture
- Electronics
- Clothing
- Valuables
Loss of Use Coverage
Helps cover temporary housing and living expenses if your home becomes uninhabitable due to damage.
Pro Tip: Don’t assume your coverage is adequate—double-check your limits and make sure they reflect today’s prices.
Common Coverage Gaps (And How to Avoid Them)
Even solid insurance policies can have blind spots. These are the areas homeowners often overlook:
- Living Expenses That Run Out Too Soon
A standard policy may cover only 12 months of temporary housing—but that may not be enough. With delays in permitting, labor shortages, or supply chain issues, rebuilding can take 18–24 months.
What to do:
Aim for 24 months of coverage. Request $200,000+ in living expenses if you’re insuring a high-value home or supporting a family - Dwelling Coverage Based on the Wrong Value
- Many people base their coverage on market value, not rebuild cost
- Land value isn’t relevant—insurance needs to cover actual construction.
- Today’s reality:
A single kitchen remodel can cost $100,000+. New floors alone might cost $20,000. Premium materials and custom finishes? Even more...
- What to do:
Review your policy annually
Get estimates from local builders
Ask your agent about extended replacement cost coverage
How to Prepare for a Claim (Before You Ever Need One)
Making a claim can be stressful—but preparation makes all the difference.
Create a Home Inventory
Use your phone to film each room, and talk through what you see. Be thorough!
What to include:
- Furniture and electronics
- Jewelry, art, and collectibles
- Receipts, appraisals, or warranties
- Renovations or special features
Working With Adjusters
You don’t have to accept your insurer’s first estimate. You can:
- Hire your own adjuster
- Get multiple quotes from contractors
- Challenge lowball estimates
What to remember:
- Document everything
- Save receipts
- Take photos of damage immediately
The Insurance Industry Is Changing—Fast
Here’s what’s happening behind the scenes—and how it affects your wallet.
Premiums Are Soaring
Average rate hikes in the past few years:
- 2022: +5.9%
- 2023: +11.6%
- 2024: +17.4%
And if you’ve had the same policy since 2021, you could be paying up to 69% more now.
Why Rates Are Rising
- More frequent natural disasters
- Higher rebuilding costs due to inflation
- Insurance companies losing money from large claims
What You Can Do
- Review your policy every year
- Shop around for better rates
- Update your home inventory annually
- Work with a trusted insurance advisor
Final Takeaways: Protecting What Matters
Let’s face it: Homeowners insurance may never be thrilling—but it is empowering. The right policy does more than check a box—it protects your home, wealth, and peace of mind.
What You Can Do Today:
- Schedule a policy review
- Create or update your home inventory
- Ask about replacement cost coverage
- Consider raising your coverage limits
- Don’t wait for a disaster to find out what’s missing
Need help reviewing your coverage or creating your home inventory checklist?
Let’s talk—your peace of mind is worth the conversation.
If you prefer to listen or watch this content, check out this podcast episode about homeowners insurance: