Overview
Homeowner insurance is a required cost in every mortgage transaction -- and it varies dramatically based on location, home age, construction type, and risk factors. In high-risk areas (hurricane zones, wildfire areas), insurance costs have risen 20-50% in recent years and can add -+/month to housing costs.
Homeowner insurance is a required cost in every mortgage transaction -- and it varies dramatically based on location, home age, construction type, and risk factors. In high-risk areas (hurricane zones, wildfire areas), insurance costs have risen 20-50% in recent years and can add -+/month to housing costs.
What You Need to Know
- Average homeowner insurance: ,428/year nationally (2025) -- but varies enormously by location
- Hurricane/coastal zones: ,000-,000+/year for standard coverage
- Wildfire risk areas (CA, CO): ,000-,000+/year if coverage is available at all
- Some insurers are exiting high-risk markets -- verify coverage availability before closing
- Insurance premiums have risen 15-25% in recent years in high-risk areas -- budget conservatively
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