The $2,370 Problem: Taming Soaring Homeowners Insurance

Homeowners insurance premiums are up 70% in five years—now averaging $2,370/year—and for many buyers it’s the hidden cost blowing up monthly payments. Tim Lucas and Craig Berry unpack what’s driving the spike, what standard policies actually cover (and don’t), and how to keep coverage strong without overpaying.In this episode, you’ll learn:Why costs exploded: climate-driven disasters, pricier rebuilds (materials + labor), insurer exits in high-risk states, and how escrow can hide the jump until your annual analysis.What your policy really covers: dwelling, personal property (often 50–70% of dwelling), liability (why $300k–$500k beats the default $100k), and Additional Living Expenses (ALE)—plus the difference between Actual Cash Value vs. Replacement Cost.The big exclusions: flood (separate policy), earthquake, and wear-and-tear. Why many owners are underinsured on today’s rebuild costs.Buyer moves (before you write the offer): get an insurance quote on the specific home, ask about roof age, prior claims (CLUE), local peril risk, and expected premium.Ways to lower the bill (without gutting coverage): raise deductibles, bundle, install mitigation (leak sensors, monitored alarms, wind/impact roofing), ask for credits, shop carriers, and consider umbrella liability for inexpensive extra protection.Coverage tune-ups to consider: extended/guaranteed replacement cost, ordinance & law, correct personal-property limits, animal-liability clarity, and appropriate ALE caps.Read the full article: https://www.mortgageresearch.com/articles/average-homeowners-insurance-premium-now-2-370-annually-as-costs-continue-to-rocket/