The Hidden Costs of Home Insurance

Look Out for These Hidden Home Insurance Costs!

If you are considering moving homes, keep in mind that home insurance rates can change drastically from place to place.

Here's a run-down of some of the big surprise costs:

1. Hurricane insurance
One of the fastest and only growing regions in the United States is the South; specifically Florida. While taxes are lower and property is generally less expensive there, home insurance costs may be higher. Many people are surprised to find out that, while storms and weather damage are standard, hurricane insurance is extra! And in the South, you need hurricane insurance.

2. Flood insurance
This is not standard. Unlike hurricanes, where the region affected is obvious, floods can hit anywhere! There are dams and levies that could break, and some places get high precipitation. Consider your flood risks when shopping for homes.

3. Nuclear power plants
The United States is unlike any other nation in the world – we are increasing our investment in nuclear power, despite the concerns over safety. While our government and energy sectors double-down in the face of the Fukushima disaster, home insurance companies are revising their coverage rates for nuclear meltdowns.

Consider how close your new and existing homes are to a nuclear power plant. If you are within even 200 miles, you might face significantly higher costs, especially if you are near areas with high natural disaster risks.