Millions of US homeowners make 1 ‘huge mistake’ that can cost them thousands — here’s what it is and how to fix it ASAP

Hit by high costs, blinded by perception

Many uninsured homeowners cite rising insurance costs as a barrier, the report said. As premiums have steadily increased, especially in areas prone to natural disasters, the monthly expense can be prohibitive — causing people to forego it with hopes they’ll never need it.

Living outside designated flood zones or in areas with low crime rates can also lead some homeowners to assume they’re not at risk — logic that can lead to huge financial consequences since disasters don’t always hit within their predicted boundaries. The reality is that even in traditionally “safe” areas, wildfires, hurricanes, flooding and other emergencies can still hit hard.

Some homeowners may not think the coverage they would get would even be worth the cost or trouble of trying to find a policy in the first place.

“In recent years homeowners across the country have felt the pressure of escalating rates, diminishing coverage, and declining availability,” the report said.

And for those who’ve recently paid off their homes, it’s tempting to eliminate one more bill. But without insurance, they’re on the hook for repair costs or a full replacement in the event of a disaster.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

No insurance: A risky money move

Not having insurance means facing the financial impact of damage or loss alone. Here’s why it’s an especially risky choice:

• Unpredictable costs: Natural disasters, like floods and fires, can trigger repair bills ranging from thousands to hundreds of thousands of dollars — or even the full price of your home. Without insurance, homeowners cover these expenses entirely out of pocket.
• Limited federal help: While The Federal Emergency Management Agency can offer some relief after a disaster, the funds provided rarely cover the full cost of rebuilding. Homeowners without insurance could be left financially devastated.
• Home value protection: Insurance not only provides peace of mind but it can help maintain the value of a home after unexpected events if you opt for full replacement cost coverage. Lacking coverage can make it harder to recoup losses or sell the property.

Coverage options without breaking the bank

Rest assured, there are ways to get home insurance at a reasonable cost.

All insurers assess risk differently, so getting multiple quotes can lead to savings. Many also offer discounts for bundling home insurance with auto or life policies.

Many states have programs for homeowners who can’t find affordable coverage elsewhere. For instance, high-risk areas often have Fair Access to Insurance Requirements plans that provide basic coverage for those unable to get it through standard providers.

For those who already have coverage but want to cut costs, there are some simple ways to save.

Increasing your deductible is one of the quickest, but make sure you can afford to cover the deductible out-of-pocket in case of a claim. Many insurers offer discounts for installing security systems, storm shutters or fire-resistant roofing. These improvements protect your home and can trigger insurance discounts.

Maintaining a good credit history can give you a leg up on your premium too, as many insurers factor that in when calculating premiums. Improving your score could even save you hundreds every month.