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References
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
Homeowners Insurance: The Basics
What is Homeowners Insurance and How Does It Work? (Bankrate, Jul. 29, 2024)
Most providers offer different payment options, such as paying annually or quarterly. If you have a mortgage on your home, you may not need to make a payment. Your premium might be included in your monthly mortgage payment, held in your escrow account and disbursed to your insurance company at each renewal.
Home Insurance Was Once a ‘Must.’ Now More Homeowners are Going Without (The Washington Post, May 27, 2024)
Most uninsured homeowners are those who have paid off their mortgage and are no longer required to have insurance. Among those who own their home outright, the CFA estimates roughly 14 percent are uninsured, with low-income and minority homeowners especially at risk. Among mortgage holders, only 2 percent opt to go without coverage.
What Is Homeowners Insurance and How Does It Work? (Rocket Mortgage, Apr. 28, 2024)
Standard homeowners insurance typically offers a range of protections for your property and personal belongings. It covers damage to your home’s structure and personal belongings in the event of perils such as fire, storm damage or theft. It also provides liability if someone is injured on your property, medical payments to cover injuries, and additional living expense coverage if you need to move out during repairs.
Home Owner’s Insurance: A Beginners Overview (Investopedia, Apr. 2, 2024)
“Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.”
NAR-Triple I Homeowners Insurance Handbook (Triple-I and National Association of REALTORS®, Aug. 2023)
The Insurance Information Institute (Triple-I) and the National Association of REALTORS (NAR) have released a Homebuyers Insurance Handbook to educate current and prospective homeowners about their insurance needs.
What to Know About Homeowners Insurance (REALTOR® Magazine)
Part of REALTOR Magazine’s “Handouts for Customers,” this one pager about homeowners insurance covers exclusions, limits on claims, replacement costs, actual cash value depreciation, and the consumer’s liability.
Assessing Costs, Coverage, and Risks
Insurers Deemed Mold Too Risky Decades Ago. That Coverage Gap Still Surprises Homeowners (CNBC, Aug. 11, 2024)
Today, standard homeowners policies typically do not cover mold, fungus, wet or dry rot, unless that damage is the result of a covered peril, according to Insurance.com. (In policies, you’re likely to see it referenced as “fungus, or wet or dry rot” coverage. Mold is a type of fungus.)
Homeowners Buying More Insurance as Disaster Zones Expand (National Mortgage News, Aug. 8, 2024) E
Earthquake, fire and flood coverage is not included in traditional homeowners policies, and premiums for each easily range into thousands of dollars. Borrowers already facing affordability challenges are nonetheless paying up following a particularly catastrophic spring.
"There is a correlation to what's happening and what they see in the media creating a causation for them to want to pursue, or at least price out, what those insurance premiums might look like for earthquake, flood and fire," said Nick Taylor, head of real estate for digital lender Better Home & Finance.
Factors That Impact Your Cost of Homeowners Insurance (Bankrate, Jul. 16, 2024)
Just like car or health insurance, there are many factors that end up affecting your home insurance rate premium. Some have to do with your personal situation, like your credit score, previous claims, or marital status while others have to do with the home itself – think location, age of home, etc. Location is a wide-ranging category, and everything from weather (flooding, fires, hurricanes, etc.) to being located near your local fire station may be a factor.
Homeowners are Increasing Insurance Deductibles to $5,000 or More to Save Money (Money, Jul. 12, 2024)
The shift to higher deductibles comes as home insurance costs have been spiking. The average annual home insurance rate increased more than 20% from 2021 to 2023, according to Insurify, an online marketplace.
Home Insurance Calculator: Estimate Your Cost (NerdWallet, Jun. 3, 2024)
Use this calculator form NerdWallet to estimate your home insurance costs! The national average for home insurance is $1,784 annually according to NerdWallet’s most recent analysis. Obviously, rates can vary greatly, so plug in your zip code and other factors to see what type of rate you may be facing.
As Home Insurance Bills Go Up, Owners’ Coverage Is Going Down (The New York Times, Feb. 16, 2024)
Colorado’s insurance commissioner, Michael Conway, discovered the extent of the underinsurance problem after a wildfire near Boulder destroyed close to a thousand homes in 2021. After getting calls from homeowners distressed that their policies wouldn’t fully cover the cost of rebuilding, the state’s Division of Insurance investigated and found that only 8 percent of policies in the areas affected by the fire pledged to cover rebuilding costs no matter how high they got.
What to Do if You’re Dropped by Your Home Insurance Company (Forbes, Jul. 28, 2022)
“To dispute your non-renewal if it’s related to your home’s location in a potentially high-risk zone for severe weather, you may have to show documentation that your home isn’t located in a high-risk area or show that you’ve completed severe weather mitigation measures.”
How to Lower Homeowners Insurance Costs (REALTOR® Magazine)
Part of REALTOR Magazine’s “Handouts for Customers,” this one pager about how to lower homeowner’s insurance costs discusses ways to either seek out lower rates or how to maintain a lower rate over time.
eBooks & Other Resources
eBooks.realtor.org
The following eBooks and digital audiobooks are available to NAR members:
Protect Yourself (eBook)
How to Insure Your Home (eBook)
Complete Book of Insurance (eBook)
Insurance for Dummies® (eBook)
Books, Videos, Research Reports & More
The resources below are available for loan through the NAR Library & Archives. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call the Library & Archives at 800-874-6500 for assistance.
Nolo's Essential Guide to Buying Your First Home (Berkeley, CA: Nolo, 2007) HD 1341 B73
Have an idea for a real estate topic? Send us your suggestions.
The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.