If your homeowners insurance bill has gone up lately, you're not alone. Rates have been climbing, and it's easy to feel stuck. You have options, though—and it starts with knowing your policy.
This guide breaks down what your coverage includes, what your choices look like in a difficult insurance market, and how to make more informed decisions going forward.
Buying a home is one of the biggest investments you'll make, and homeowners insurance is what protects it if something goes wrong. If your coverage gets cancelled, your mortgage company will step in with something called "force-placed coverage."
This type of policy only protects the home itself—it doesn't cover your belongings or other protections you'd normally carry. The cost also gets added to your mortgage bill.
Keeping your policy active and paid on time is the best way to avoid it. If your current premium is hard to manage, a more affordable option may be available. Here’s how to find it.
Start by pulling up your policy document. Your insurer sends this when you first buy coverage and again at each renewal. Most also make it available through their online portal. The first couple of pages (called the declarations page) summarize your coverage at a glance.
You'll find your dwelling coverage there, which is the cost to rebuild your home based on labor and materials, not what you paid for it. You'll also see coverage for other structures like detached garages and fences, personal property coverage for your belongings, loss of use coverage if a covered loss keeps you out of your home, and personal liability coverage if someone is injured due to your negligence.
Knowing what's in your policy helps you spot gaps, ask better questions when you shop, and avoid paying for things you don't need. The Understanding Your Coverage worksheet walks you through your policy so you can make sure you've covered your bases.
If you live in a townhome or community with a homeowners association, the two policies work in layers. Your governing documents will state what is covered by the HOA and what is covered by the individual homeowner. Each HOA is different, but many HOA master policies cover roofs, sidings and walls. Your own policy covers everything inside: drywall, flooring, appliances, and your personal belongings.
Review your HOA's insurance section in your bylaws at least once a year. The association's coverage can change at renewal, which may affect what your own policy needs to include. That same Understanding Your Coverage worksheet can help you map out where the HOA's coverage ends and yours begins.
Two coverages worth verifying: association deductible coverage and assessment coverage. If the HOA faces a major loss and its insurance falls short, it can pass those costs to homeowners. These coverages protect you if that happens.
Once you know what's in your policy, a few questions are worth asking:
Are you overpaying? Your premium is what you pay to keep coverage active. Your deductible is what you pay out of pocket before insurance covers a claim. A higher deductible means a lower premium—if you've built up savings since you first bought your policy, adjusting that ratio may be worth it.
Is everything covered? Look for gaps between your policy limits and what you actually own or owe. A finished basement, an added garage, or significant renovations may require updated coverage.
Do you have the right deductible? Wind and hail typically carry a separate percentage-based deductible on top of your standard one worth knowing before hail season.
Have you shopped around? If your rate has gone up, it doesn't mean all rates have. When comparing, ask each company for the same coverage at the same levels. A lower price that reflects less protection isn't a deal. Our Insurance Comparison Worksheet makes this easier by walking you through each coverage type side by side.
Twin Cities Habitat can't recommend specific companies, but neighbors, family, and friends who own homes are a good place to start.
You don't have to wait for your renewal date to switch insurers. When you do, buy the new policy first, then cancel the old one only after the new policy's effective date. Notify your mortgage company, update any accounts tied to your insurance payments, and get written confirmation of the cancellation.
A few other things to keep in mind: your claims history affects your future premium and your ability to get coverage. If a repair is only slightly over your deductible, filing may not be worth it—that history follows you for three to five years. Insurance covers sudden, accidental losses, not wear and tear, so regular home maintenance matters more than people sometimes expect.
The insurance market has made an already complicated process harder to navigate. Our Understanding Your Coverage and Insurance Comparison Worksheets are good places to start, and if you have questions or aren't sure what your next step is, we're here to help you work through it.