Homeowners Insurance Homeowners Insurance rates have risen 69% over the last decade and at the same time basic coverage has been shrinking and restrictions have been growing. Homeowners Insurance is one of the least profitable types of insurance; combine that with the recent unpredictable weather events plus low interest rates & poor investment opportunities for the investments of premiums and you have the insurance companies scrambling to make money. Therefore companies have stopped writing policies in disaster prone areas, pushed for higher premiums and scaled back coverage. Coverage varies widely among carriers now, making it even more difficult to compare. Water damage has become extremely difficult to collect on. Repairs may not be fully covered due to increased prices after a major disaster or specific mandates on when the repairs need to be completed. Rebuilding may not be covered due to the extra expenses of meeting modern building codes. Private insurers do not even offer flood insurance anymore. You need to turn to the National Flood Insurance Program for that which has its own restrictions in maximum allowance and coverage areas. Your best bets for getting the coverage you need are: • Shop around – get at least 3-5 quotes • Compare, some state insurance departments offer comparison tools • Ask about replacement coverage, riders and discounts • Request a sample policy and make sure you read your policy. Money Magazine April 2013