The Four Monthlies

There are several things a buyer (and renter) needs to consider when buying or renting a home related to monthly costs, something that often matters much more than the asking price:

1.  Monthly mortgage payment.

2.  Monthly real estate taxes

3.  Monthly maintenance costs or HOA fees.

Now there is a fourth one that till recently did not count that much and was often barely noticed.....insurance costs.

In most parts of the US insurance premiums are rising. They are rising much faster than the rate of inflation. MUCH! And in some areas they are rising at a pace whereby owners cannot keep apace with them. There are multiple reasons for this, and I do not see quick and/or easy solutions in the near future. Too many homes exist in areas prone to nature's extremes including fires, hurricanes, tornadoes and flooding. Add in the massive insurance frauds. Then add in the massive - often abusive - litigation in insurance claims that causes additional cost. Now add in much higher building and repair costs. Then add in higher financing costs. The list goes on.

No buyer or renter should ignore what their monthly insurance cost will be, and what exactly that will cover. What are the deductibles and do you have sufficient funds to cover that? Is your property fully insured for REPLACEMENT value and are you updating this annually?