Home insurance can be expensive because insurers base your premium on how risky and costly your home is to protect. Factors like where you live, exposure to natural disasters (such as floods, fires, or storms), the age and condition of your home, and local repair and construction costs all play a role. Premiums have also increased due to rising labor and material prices, more frequent severe weather, and higher claim payouts. Even if you haven’t filed a claim, overall increases in losses and inflation can cause home insurance rates to go up.

Proper home insurance coverage protects your house, belongings, and finances if something unexpected happens. It usually includes enough dwelling coverage to fully rebuild your home, personal property coverage for your possessions, liability coverage if someone is injured on your property, and additional living expenses if you can’t live in your home after a covered loss. The right coverage amount depends on your home’s value, risks in your area, and your personal needs.

Mortgage insurance and home insurance protect different things. Mortgage insurance protects the lender if you can’t make your loan payments, and it’s usually required when you put down less than 20% on a home. Home insurance protects you by covering damage to your house and belongings and providing liability coverage if someone is injured on your property.