Navigate Home Insurance Pros Cons Like A Pro
The Cons of Home Insurance
Despite its benefits, home insurance also has its drawbacks. Premiums can be expensive, especially in high-risk areas prone to natural disasters. According to the Insurance Information Institute, the average annual premium for homeowners insurance in the U.S. is around $1,4452.
Furthermore, not all potential damages are covered. For example, standard policies often exclude damages caused by floods or earthquakes, requiring additional coverage. There are also limits to the coverage amounts, which might not fully cover high-value items unless specifically insured.
Another downside is the possibility of rate increases after filing a claim. Insurers may raise premiums if they perceive you as a higher risk, which can be a significant financial burden over time.