The Importance of a Homeowners Insurance Policy

Numbers don’t lie, and when reviewing the data on Homeowners Insurance policy claims, one can easily recognize the importance of having a policy. With the price of homes steadily on the rise and an active presence of natural disasters, a homeowners insurance policy is critical to help shield your family from financial ruin.

As of 2021, the national average homeowners policy premium is $1,309 per year, or $109 per month.  In the State of California, the average annual premium is around $1,104, and $1,200 or more in and around major cities.

CityAverage Annual Premium
Los Angeles$1,240
San Francisco$1,149
San Diego$926
Sources Linked Below

Despite not being legally required, homeowners policies are some of the most common policies with around 95% of U.S. homeowners having a policy. These policies are popular for two major reasons: lender requirement and personal financial need. Firstly, many lending associations (such as mortgage companies, banks, etc.) require an insurance policy to protect their investment. Secondly, many homeowners want to protect what is often their family’s largest investment when or if a disaster strikes. Recent data shows that homeowners are increasingly taking more actions to protect their homes, and with due reason. Claims for natural disasters, such as fire, wind, hail, and lightning damage have been on the rise.

Cause of Property Loss2014 Percentages2015 Percentages2016 Percentages2017 Percentages2018 Percentages
Wind & Hail28.8%21.1%32.8%41.7%34.4%
Fire & lightning24.6%22.2%25.9%32.8%32.7%
Sources Linked Below

Nowadays, depending on the coverage you purchase, homeowners policies can also include protection for your personal property in a storage facility, specialty items/collections, personal injury for libel/slander/defamation of character, and liability for you and your household if one causes bodily harm or property damage to another. It is a common misconception that a homeowners policy covers everyone the same.  This is far from the truth because everyone, every house, and every insured’s priorities are very different.  If you would like to know more about homeowner’s policies or receive a homeowners policy quote specific to your needs and priorities, you can reach out to us via phone or email. Or Click Here to get a quote!