As summer approaches, so do the storms. Tornado activity often peaks in the spring and early summer, and the Atlantic hurricane season starts in June.

In 2024, there were 27 weather- or climate-related disasters that each had losses of $1 billion or more, according to the most recent data from the National Oceanic and Atmospheric Administration.

In case severe weather or another catastrophe hits, now is a good time to make sure your home insurance coverage is up to snuff. It's also a good idea to make a regular practice of reviewing your policy before it renews each year, says Susan Meyer, insurance analyst at The Zebra, a site for comparing insurance quotes.

ABCs of coverage.

First, assess some key coverages. Your dwelling coverage, otherwise known as Coverage A, pays to rebuild your home's physical structure, including framing, roofs, floors and chimneys, if it's damaged by fire, a storm, snow or other covered perils.

You may need to adjust your policy's dwelling coverage if you've renovated your home by, say, adding a bathroom or remodeling your kitchen. Rising prices for construction materials in recent years may push up the cost of rebuilding, too. Talk with your insurance agent or a local contractor to get an idea of the cost per square foot to rebuild your home.

Some insurance companies offer online calculators you can use to help determine how much coverage you need.

While Coverage A applies to your house, Coverage B protects other structures that are not physically attached to it, such as a fence, detached garage, shed or guest house. The Coverage B limit is typically set at 10% of the Coverage A limit.

If your dwelling-coverage limit is $400,000, for example, then your limit for other structures would be $40,000. Depending on the types of other structures you have on your property, you may need to increase the Coverage B limit.

Personal-property coverage, or Coverage C, protects possessions that you keep in your home, such as furniture, clothing and electronics. This coverage typically insures your personal property at 50% to 70% of your dwelling limit. If you make a high-value purchase, such as a diamond necklace or fine art, you may need to revisit your personal-property coverage.

While such items are protected by Coverage C, they may be subject to separate limits that insure them for less than their total value.

For example, your policy might impose a $2,000 limit for jewelry. You can purchase a rider that covers a specific item based on its appraised value. (Likewise, if an item depreciates in value or you no longer own it, you can lower the limit or remove the coverage.)

If you rent, you should get renters insurance to protect your personal property. You don't need to buy insurance for your home's structure, because your landlord is responsible for it.

Use the tool below to compare some of today's top home insurance offers, powered by Bankrate, and find a policy that works for you:

Protection against natural disasters.

Depending on where you live, you may need to get separate coverage that addresses certain events. For one, standard homeowners insurance includes coverage for wind-driven rain that comes in through your roof, but it doesn't protect your home if floodwaters enter it from the ground. For that, you need to buy a separate flood insurance policy.

Flood insurance is essential for those who live in high-risk flood zones. In fact, if you live in one of these areas and have a government-backed mortgage, your lender requires you to buy flood insurance. And given the rise in extreme rain events throughout the country, even those who live in regions not typically thought of as flood-prone may want to consider purchasing flood insurance.

You can buy it through the Federal Emergency Management Agency's National Flood Insurance Program. The average annual cost of an NFIP policy is $888 per year, according to an analysis of policyholder data from online insurance marketplace Policygenius. Renters who want to protect their belongings in case of flood damage also need to buy a separate policy.

Standard homeowners policies also exclude coverage for damage from earthquakes. In states at higher risk of earthquakes, such as California, buying an earthquake policy may be worthwhile. In California, the typical earthquake policy runs more than $1,300 yearly, according to LendingTree.

If you live in a coastal area that's susceptible to hurricanes, your policy may impose a separate deductible (the amount of money you must pay in a claim before coverage kicks in) for windstorms.

A hurricane deductible is typically a percentage of your dwelling coverage, often ranging from 1% to 5%. For example, if your dwelling limit is $200,000 and you have a hurricane deductible of 2%, you would pay $4,000 in a claim for hurricane damage. Some policies may apply the deductible only to named hurricanes; with other policies, the deductible may apply to all windstorms.

Keeping the costs in check.

Homeowners insurance premiums have climbed steeply. A 2025 report from the Consumer Federation of America found that U.S. homeowners saw their premiums rise by an average of 24% over the past three years. So it's as important as ever to make moves that help reduce your premiums.

One option is to raise your deductible. Increasing the deductible from $500 to $1,000 may lower your premium by 10% to 25%, depending on your location, insurer and home value, according to the Insurance Information Institute.

To ensure that you can pay a higher deductible out of pocket, stash away enough in your emergency savings to cover it.

Bundling your homeowners and auto insurance with one provider can also save money on insurance premiums. By adding certain protective home upgrades, such as motion-sensor lights or storm shutters, you may qualify for discounts, says Pete Piotrowski, chief claims officer at Hippo Insurance.

You may be able to get a lower rate by switching insurers. You can collect quotes from multiple insurance companies using sites such as Policygenius or The Zebra. Or work with an independent insurance agent, who can also help you make sure that your coverage is adequate. Search for one at .

If you live in a state that allows insurance companies to use credit-based insurance scores when making decisions about how to much to charge (California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah prohibit this practice), you can potentially lower your premium by practicing good credit habits, such as paying your bills on time and regularly checking your credit reports for errors or fraudulent accounts.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Do you really want to "win" with your insurance?

Stick with me here, because I know how this sounds. You pay premiums every year. The bill comes. You grumble. You write the check. Then the next year comes, and you do it again. No claim. No check from the insurance company. No parade. No balloons. No oversized novelty check like you just hit the jackpot on a game show.

So it is very tempting to think, "When do I finally get something back?"

I get it.

But here is the problem with that way of thinking: An insurance claim is not a lottery ticket. It is not a slot machine. It is not you pulling the handle every year with your premium payment and waiting for three cherries to line up.

Because when you "win" an insurance claim, something bad had to happen first.

Your house burned. Your kitchen flooded. Your car was crunched. Someone got hurt. A lawsuit landed in your mailbox. A tree came through the roof. A thief decided your belongings looked better in his garage than yours.

Bingo and cha-ching?

Not exactly.

Why your insurance just sitting there is a good thing

Insurance is one of the few products in life that you buy hoping you never have to use.

Think about that. You do not buy a refrigerator hoping it never gets cold. You do not buy a car hoping it never starts. You do not buy a cellphone hoping it never rings (although, depending on who is calling, I suppose there are exceptions on that one).

But insurance? You absolutely hope it just sits there.

Quiet. Boring. Uneventful.

And boring is good.

Let's use the slot machine analogy for a minute. Every year, you pay your insurance premium. Some people imagine that premium as the coin going into the machine. Pull the handle. Nothing. Pull the handle again next year. Nothing. Then, finally, a claim happens, and money comes out.

"See?" they say. "I finally won."

No. You did not win. You had a loss.

Translation: The insurance company did not give you a prize. It performed a contractual obligation.

That is a very important distinction.

It's a contract

An insurance policy is a contract. Not a favor. Not a gift. Not charity. Not "good vibes from a carrier." You agree to pay the premium. The insurance company agrees that if a covered loss happens, subject to the terms, conditions, exclusions, deductibles, limits, endorsements, definitions and all the other exciting bedtime reading in the policy, it will pay what it owes.

I know. That sentence was a lot.

Translation: You pay your insurance company, and if the covered bad thing happens, your insurance company steps up.

That is the deal.

Now, does every claim go perfectly? Of course not. I am an insurance professional, not Willy Wonka. I do not live in a factory where rivers of chocolate solve coverage disputes.

• Claims can be frustrating
• Claims adjusters can be slow
• Estimates can differ
• Coverage questions can get complicated
• Deductibles can surprise people
• Sometimes companies get it wrong

But the basic idea matters: A claim is not a bonus. It is the policy doing its job after something you did not want to happen happened.

Here is another way to think about it. You pay for fire extinguishers, smoke detectors, seat belts, airbags, alarm systems and maybe even a home security service. If the smoke detector screams at 2 in the morning because there is a fire in the hallway, do you say, "Fantastic! I finally got my money's worth!"

I hope not.

You say, "Get everyone out."

Then, later, when your heart rate slows down, you may be grateful the smoke detector worked. You may be grateful the fire department came. You may be grateful insurance is there to help put things back together. But you are not celebrating the fire.

Same thing with insurance.

The claim is not the good news. The coverage is the good news.

Big difference.

And that brings us to another common mistake: Measuring the value of insurance only by whether you filed a claim.

"I paid for 10 years and never used it."

Good.

Really good.

Your very own lazy superhero

If you paid for homeowners insurance for 10 years and never filed a fire claim, that means your house did not burn down. If you paid for auto insurance and never had a serious accident, that means you were not injured, sued or stranded on the freeway exchanging information with someone whose first sentence is, "I didn't see you."

If you paid for liability insurance and never got sued, congratulations. That is not wasted money. That is peace, stability and protection sitting quietly in the background like a very boring superhero.

No cape. No theme music. Just there.

The purpose of insurance is not to make you richer. It is to keep a covered loss from making you much poorer.

That is the part people miss.

Insurance is not designed to be an investment account. It is not a savings plan. It is not a casino. It is risk transfer.

Translation: You are taking a financial risk that could be too big, too sudden or too ugly to handle alone, and you are transferring some of that risk to an insurance company in exchange for premium.

That is why the premium exists.

And yes, premiums have been going up, up, up. Especially in California. Homeowners insurance has become harder to find, harder to keep and harder to afford. Auto insurance is not exactly throwing a discount party either. People are frustrated, and I do not blame them one bit.

When the bill gets bigger, the temptation to say, "Well, I better get something out of this," gets stronger.

But again, what does "getting something out of it" mean?

If it means your house burned and the carrier helps you rebuild, that is not a lucky day. That is a terrible day with a financial backstop.

If it means your car was totaled, but the policy responds, that is not a jackpot. That is a bad day made less financially destructive.

If it means someone sued you, and your liability coverage provides defense, that is not winning the lotto. That is the contract showing up with a lawyer when you really, really do not want to be alone.

Insurance is the friend who answers the phone at 3 a.m. Not because you are having a party. Because something went wrong.

What insurance is good for

So what should you want from your insurance?

First, you want the right coverage before the loss. Not after. After is too late. You cannot buy fire insurance while the flames are already taking a tour of the living room.

Second, you want limits that make sense. The least-expensive policy may feel good on billing day, but it will feel terrible on claim day.

Third, you want to understand your deductible. The deductible is your part of the deal. It is not a surprise cover charge at a restaurant. It is in the contract.

Fourth, you want to know the exclusions. Exclusions are the policy's way of saying, "Not this." Boring? Yes. Important? You betcha.

And fifth, you want an agent who will tell you the truth, even when the truth is not wrapped in a bow.

Because the right question is not, "How do I get my money back?"

The right question is, "If something terrible happens, will this policy respond the way I need it to?"

That is the whole ballgame.

You don't have to love it

Listen, I am not asking anyone to love paying insurance premiums. I have been in this business a long time, and I have yet to meet someone who frames their renewal bill and hangs it over the fireplace.

But I am asking you to look at insurance for what it is.

It is not a lotto ticket.

It is not a slot machine.

It is not a prize.

It is a promise written in contract language, backed by dollars, regulated by rules and tested when life decides to throw a brick through your plans.

You do not buy insurance because you want a claim.

You buy insurance because, if a claim happens, you do not want to face it alone.

So the next time you pay that premium and nothing bad happens, try this thought instead: "Good. I hope I never need it."

Because the best claim is the one you never have.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The amount insurers pay out on home and car insurance claims has plummeted while the cost of your premiums have soared, according to a recent analysis by the Vanderbilt Policy Accelerator.

At a time when insurance companies are warning of the need for further rate hikes amid worsening climate change and the rising cost of home and auto repairs, this study says that they may already be charging most Americans far more than they need to remain solvent.

How did the study determine what portion of the premiums Americans pay was excessive? Where is all that extra money going if it's not going to claims? Most importantly, what can you do to cut your home and auto premiums at a time when all of your other bills are going up as well? Here's what you need to know.

Study argues Americans are being overcharged for insurance

Rate setting in the insurance industry is a complex and not very transparent process. Every company has its own set of risk factors and its own methodology for rating that it's reluctant to share with the public. Moreover, every state has its own set of rules around what insurers can and can't use when setting those rates. Some states even require companies to submit rate proposals to the state insurance commissioner for approval before raising premiums at all.

With that complexity in mind, what exactly did this analysis measure, and how did it determine what portion of premiums constituted an overcharge?

The Vanderbilt study, which was obtained exclusively by the Associated Press, looks specifically at what's called the loss ratio, or the gap between the amount insurers charge policyholders in premiums and the amount they pay out in claims every year.

For every dollar earned in premiums in 2024, the study says, companies paid out just 62 cents on claims on average. That's down nearly 20 cents since the 1990s, when companies averaged about 80 cents per dollar in claim payouts.

If the loss ratio in 2024 had instead been at that 80 cent level from years prior, Americans would have saved a combined $150 billion in that year alone.

According to the study, that $150 billion per year is going toward "corporate perks, corporate jets, stock-buy backs, excessive executive compensation, excessive dividends, excessive advertising, and excessive agent commissions.”

Insurance companies argue that's not the case. "Current loss ratios reflect the impact of enormous financial losses over the last several years and the steps insurers have taken (to) maintain and restore financial strength so funds are available to pay future claims," Don Griffin, vice president for policy and research at the American Property Casualty Insurance Association, told AP in an email.

How can you combat soaring insurance premiums?

The Vanderbilt study proposed a set of federal regulations to enforce a standard loss ratio for insurers nationwide in order to prevent excessive premiums. Right now, the insurance industry is regulated primarily at the state level, meaning the level of regulatory protections you enjoy depends almost entirely on which state you happen to live in.

Aside from waiting for those proposed federal regulations to become law or moving to a state with stronger consumer protection laws, what can you do to keep your insurance premiums under control at a time when loss ratios are apparently growing wider?

The most important step you can take is getting new quotes for your home and car insurance ahead of every renewal. Loyalty doesn't pay in insurance anymore. Any loyalty discount you may be earning for sticking around is unlikely to outweigh the incentive pricing insurers offer to woo new customers.

In the worst-case scenario, shopping around for new quotes every year will just confirm that your current price is the best you're going to find. In the best case, you could save hundreds every year for the exact same coverage.

Aside from switching your insurance every time you find a better deal, here are a few others effective strategies for lowering premiums without changing your coverage:

• Pay your policy in full up front rather than in monthly installments as many insurers offer a "paid in full" discount. This should work for both car and home insurance.
• Take a quick defensive driving course to save up to 10% on car insurance. Some states mandate discounts for taking defensive driving courses. But even if yours doesn't, call your insurer to see if they offer the discount anyway.
• If you're getting ready to buy a new car soon, check how much your favorite car models cost to insure first. Some models have far lower average premiums than others.
• Notify your insurer of any home safety upgrades you've made or plan to make, like installing a home security system or getting rid of a pool or trampoline.
• You may also be able to get discounts for home hardening upgrades and other projects that improve your home's ability to withstand weather-related hazards.
• Look for membership-related discounts from places like AAA, AARP or even Costco.
• Ask your insurer about senior discounts for home insurance if you're 55 or older.

Always scrutinize your insurance renewal quotes

Whether the soaring premiums are justified as insurance companies claim or excessive as the study suggests, the key takeaway for consumers is to always take a close look at that renewal offer. How is your insurer justifying those higher premiums? What discounts are they applying (or not applying)? Have any coverage terms changed?

Above all, remember that it doesn't hurt to shop around just to see how that renewal offer compares to what other insurers are willing to charge. Even if you really like your current insurer, you can always use those quotes to try to negotiate a better rate.

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Senate Bill 1486 is currently awaiting a vote in the Illinois Senate, and it's already being met with a mix of enthusiasm and disdain. Illinois Secretary of State Alexi Giannoulias has championed it as a set of strong consumer protections for Illinois drivers. But some in the insurance industry are saying the new regulations will lead to rate hikes or more policy cancellations.

With such mixed messaging coming out about this bill, Illinois residents might be concerned and confused about what the new law would mean for their budget.

If passed, it could have a real impact on both your home and car insurance premiums, so it's important to dig into the weeds and see what it's about.

What would Senate Bill 1486 do?

The sweeping consumer protection bill includes a lot of new regulations aimed at targeting everything from junk fees to fraud to unfair insurance rates. Here's a look at just the pieces of the bill that would impact what you pay for home and auto coverage:

• Insurance companies would have to provide you with 60 days notice if they plan to raise your home or car insurance rates by more than 10% at your next renewal.
• An insurance company wouldn't be allowed to shift costs related to out-of-state risks onto Illinois policyholders. For example, an insurance company doing business in multiple states can't charge Illinois homeowners more to offset the higher cost of claims they're paying out after a natural disaster in, say, California or Florida.
• Illinois's existing laws about excessive or unfair rate-setting practices would now apply to car insurance (as well as home insurance).
• The state's Department of Insurance would now have a more clear process for enforcing those existing laws.
• The bill will also cut the class time required for seniors (55-plus) taking a defensive driving course for a premium discount. If passed, you'd qualify for the discount after just four hours instead of eight hours.

If passed, these new regulations would go into effect in Illinois on July 1, 2027.

The reasoning behind Senate Bill 1486

The proposed policy changes are the result of concerns raised during Giannoulias's Driving Change campaign, which highlighted "how insurers use socio-economic data including credit scores, ZIP codes and age to set rates in ways that disproportionately impact seniors, working families and communities of color."

According to the Driving Change campaign page, full coverage car insurance rates shot up 18% on average in Illinois from 2023 to 2024.

In an independent study commissioned from O'Neil Risk Consulting & Algorithmic Auditing (ORCAA) and released by the secretary in April, car insurance rates across the state appeared to be tied, in part, to factors that aren't directly related to the actual risk of insuring the driver.

Poor credit, for example, can result in premiums that are almost triple what a driver with excellent credit would pay for the same coverage, despite credit scores not being directly related to a person's ability to drive safely.

This can be especially hard on seniors who face higher car insurance rates due to their age. For those on a fixed retirement income, it can be difficult for their budgets to absorb 10% or more rate hikes every year — especially if their driving record remains clean and all that's changing is their age.

In one public comment published on the Driving Change campaign page, an Illinois driver notes that her car insurance jumped from $75 per month to $212 per month the year she turned 65, despite a perfect driving record.

Is Senate Bill 1486 good news or bad news for Illinois policyholders?

In a policy brief on the Illinois bill, the Insurance Information Institute said, "The measure would add new regulatory layers that could impede the accurate pricing of risk while doing nothing to address the underlying causes of rising premiums."

The III argues that the new restrictions on how companies set rates "could erode the policyholder surplus insurers are required to keep on hand to pay claims" If that happens, insurers might choose to either raise rates to replenish the surplus or pull out of riskier states.

The institute also notes that, when factoring in median household income, insurance rates in Illinois are already more affordable than the national average.

However, the new law would not prevent insurers from raising rates in response to increasing risk in Illinois. It's specifically targeting the use of factors that aren't strongly linked to risk when setting rates, and to the cost-shifting practices some companies use to offset higher costs in states that are prone to more expensive natural disasters.

If an insurance company can clearly show that the rates charged reflect, in the words of Senate Bill 1486, "an actuarially sound estimate of the expected value of all future costs" of the individual risk, it should have no problem remaining in compliance with the new law.

Overall, this legislation looks like good news for Illinois homeowners and drivers. It will give those facing steep renewal rates more time to shop around and switch car insurance (or home insurance) if they find a better price, and it will limit the use of less relevant factors (like your credit score) in determining the rates you pay.

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For the fourth year, we're pleased to present the winners of our annual Readers' Choice Awards. In a survey we conducted on Kiplinger.com in January and February, more than 4,200 readers rated the financial products and services they use in 13 categories, from credit cards and banks to brokers, wealth managers and annuity providers. The results here offer valuable insight into the everyday experiences that Kiplinger readers have with their financial providers.

Respondents made their judgments on such criteria as their interactions with customer service, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. They also had the option to leave comments about their providers, and we have shared some of them here (remarks may be lightly edited for length and clarity).

For each category, we've listed an overall winner that earned the highest total score as well as other providers that earned above-average ratings for the various criteria that readers assessed. Our thanks to all of you who participated in the survey.

Kiplinger Readers' Choice Awards: Homeowners Insurance Companies

We asked readers to judge their homeowners insurance provider according to how competitive the rates are, how positive the experience has been when filing a claim and how likely they would be to recommend the company to others. Companies that earned top marks on home insurance tended to be highly rated for auto insurance, too.

OVERALL WINNER: USAA

Outstanding for:

• Competitive rates
• Claims experience
• Most recommended

USAA received top scores and rave reviews from many Kiplinger readers, who praised the company for its competitive rates and smooth claims experience. One reader called USAA "the gold standard for service," while another said they check quotes every year and "USAA is always the best coverage for the money."

USAA offers home insurance nationwide, but you must be a military servicemember, a veteran, or the spouse or child of a USAA member. For those eligible, USAA is often the best deal around when it comes to affordable premiums and top-notch customer service. Many Kiplinger readers reported sticking with the provider for decades, with no plans to leave anytime soon.

Highly-Rated Providers

Erie

Outstanding for:

• Competitive rates
• Claims experience
• Most recommended

One Kiplinger reader called Erie "great to work with when you need to make a claim." The company's home insurance policies were highly rated across all the criteria we asked about, making it a close second to USAA and an excellent choice for those who don't qualify for USAA membership.

ut you must live in one of the 12 states where Erie offers coverage: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin. Washington, D.C., residents can also get a policy from Erie.

Amica

Outstanding for:

• Claims experience
• Most recommended

Readers appreciate Amica's home insurance especially for its top-notch claims experience. The insurer earned the highest score on that criterion, and many readers commended the quality of service, with one saying, "Amica customer service is exceptional. We were newly returned customers after several years bouncing between other insurance companies, and we filed a house claim the first year. Their estimator was quick to respond, fair in their assessment and payment. Our premiums did not increase due to the claim."

AAA

Outstanding for: Competitive rates

AAA is well-known for its emergency roadside assistance, members-only discounts and other perks of joining the auto club.

But it also offers home insurance, which readers rated highly for competitive rates. And the rates may be even better when you bundle your homeowners policy with AAA’s auto insurance. Readers also praised AAA auto insurance for its affordable premiums this year.

Farm Bureau

Outstanding for: Claims experience

The American Farm Bureau Federation is an agricultural organization with farm bureaus located in all 50 states, providing a wide range of insurance policies and services.

This makes it a uniquely useful choice for homeowners with niche insurance needs —such as the ability to insure large acreage or a farm — that can be hard to find from other insurers. And, says one reader, "the customer service is excellent."

Mercury

Outstanding for: Competitive rates

Mercury offers home insurance in select states, and offerings vary. But if you live in a state where Mercury is available, consider bundling your home policy with the company’s equally affordable auto insurance for even better rates. "I live in southern California, and the home insurance rates have skyrocketed in recent years. I bundle my auto and home policy with Mercury, and it appears to be the best deal I can find," says a Kiplinger reader.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers*
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards*
• Readers' Choice Airline Credit Card Rewards Programs*
• Readers' Choice National Banks*
• Readers' Choice Internet Banks*
• Readers' Choice Auto Insurance Companies
• Readers' Choice Homeowners Insurance Companies
• Readers' Choice Annuity Providers*
• Readers' Choice Tax Software*
• Readers' Choice Peer-to-Peer Payment Services
• Readers' Choice Awards Travel Rewards Credit Cards*

How Readers Chose the Winners

Kiplinger readers were invited to take the Readers' Choice Awards survey on Kiplinger.com between January 22 and February 19, 2026. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: brokerage firms, wealth managers, IRA providers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, national banks, internet banks, annuity providers, homeowners insurers, auto insurers, tax software and peer-to-peer payment services.

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider. In some categories, we included more nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm's advisers and the quality of its financial advice and retirement-planning services. For IRA providers, respondents assessed the mix of investment choices available to them. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring providers that had a score above the overall mean won an "outstanding" accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named "outstanding." In each category, providers are generally listed in descending order by the number of criteria for which they received the "outstanding" designation — so a product or company that is deemed "outstanding" in three areas, for example, is listed before a provider with one or two "outstanding" awards.

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

*Because of a technical issue during the 2026 survey data collection, some providers that readers evaluated in certain categories, marked with an asterisk, were ranked using patterns from the 2025 consumer survey data.Affected were three of 18 brokerage firms, six of 20 cash-back credit cards, two of 15 travel rewards credit cards, one of 13 airline credit card rewards programs, three of 33 banks, two of 14 annuity providers, and one of eight tax-software products. All other categories fully reflect 2026 data. All results represent actual Kiplinger reader feedback.

For anyone navigating the 2026 housing market, the current rate volatility might feel impossible to ignore and even harder to time.

Today, mortgage rates for 30-year fixed loans are hovering around 6.44%. While many analysts, including Fannie Mae, predict rates could drop to 5.9% by year-end, geopolitical instability — specifically, the current conflict in the Middle East — has sent rates on an upward trajectory this month.

Is right now a better time to buy, or should you wait? Buying now allows you to lock in a rate before further volatility spikes. Yet, three tax signals might determine whether you can afford a home in 2026.

Are today's mortgage rates helping me buy a house?

So far, the 2026 housing market is proving more accessible than the previous two years:

• Home prices are flattening. Current forecasts by J.P. Morgan and the National Association of Realtors show a 0% to 4% appreciation, respectively. This is a significant "cool down" from recent years.
• Inventory is increasing. As rates stabilize near 6%, more homeowners are willing to list their properties and trade their low-rate houses for a new move (including retirees looking to downsize).
• Rate volatility. Until recently, rates were around 6%, which was down from last year's high of 7.01%, according to the Federal Reserve Bank of St. Louis. However, the recent tick up to roughly 6.44% is due to the U.S.-Iran conflict.

Mortgage rate increases serve as a reminder that market timing is a gamble. But your personal financial readiness might be the only variable you can control if you want to buy a house in 2026.

Signal 1: The 'tax return threshold'

Although it might seem counterintuitive to focus on the past when looking at a new home, your lender is doing exactly that. Lenders verify your last two years of tax returns to calculate your debt-to-income (DTI) ratio.

Your DTI is calculated by dividing your total monthly debt payments (from your credit report) by your gross monthly income (before taxes).

Example: If you earn $10,000 per month and have $4,000 in total debt (student loans, car payments and your proposed mortgage), your DTI is 40%.

Ideally, you want to sit at 36% or lower, though many conventional lenders accept up to 43%. Calculate what your DTI is before you ask yourself, "Should I lock in a mortgage rate now or later?"

If you need a house today and can afford it at the rate you're for which you're approved, lock it in. You might refinance your home later if the value is higher, but you can't "refinance" a missed opportunity on a home price that was within your DTI limits.

Signal 2: The 'escrow creep' indicator

A common mistake for homebuyers in 2026 is focusing solely on the mortgage principal and interest while ignoring the "escrow creep."

Review all categories of expenses that might go into your escrow account — including home insurance premiums and property taxes.

Your annual property tax bill is a good indicator of cost-of-living increases in your area. If a county has a history of aggressive reassessments, your "affordable" 2026 payment could become a burden later.

Additionally, you should only buy a home in 2026 if you plan to stay for at least five years. This gives you a good chance your home equity will grow enough to cover future closing and agent costs (if you decide to move).

If you aren't sure you'll be in the area for five years, renting might be the better option for your financial situation. (Some recent analyses suggest a 10-year runway for holding onto a home).

Finally, don't forget to factor in insurance volatility. In such states as Florida, some homeowners have seen premiums surge by about 49% in the last several years, per recent LendingTree data. If you don't bake these "hidden" costs into your DTI now, your dream home could quickly become a liability.

Signal 3: The '2026 tax perk' qualifiers

Several federal tax shifts in 2026 have changed the math on home affordability. These shouldn't be viewed as year-end "bonuses," but as part of your monthly cash flow:

• Restored insurance deductions. Starting in 2026, private mortgage insurance (PMI) premiums, FHA/USDA insurance premiums, and Veterans Affairs (VA) funding fees are tax-deductible again for buyers with an adjusted gross income (AGI) below $100,000.
• State and local tax (SALT) tax deduction cap. Under the 2025 Trump tax bill, the SALT deduction limit has increased to $40,400 for tax year 2026 (some homeowners might still be subject to the former $10,000 cap).
• Mortgage interest limits. You can continue to deduct mortgage interest on up to $750,000 of debt. For many, this could lower the "effective" interest rate of a 6.4% loan.

It's important to note that these deductions are only available if you itemize and don't claim the standard deduction.

But if you're eligible, incorporating these homeowner tax breaks alongside your projected property taxes, HOA fees, and insurance premiums, could give you a more realistic view of the "all in" home cost and whether you can truly afford your DTI mortgage rate in 2026.

The bottom line: Is 2026 a good year to buy a house?

For the prepared homebuyer, 2026 might be the best window we've seen in years. Lower rates, higher inventory and moderate price increases mean sellers might finally be ready to negotiate.

However, your first step isn't browsing Zillow — it's reviewing your 2025 tax return. Ensure your income is documented, your DTI is optimized, and you're moving to an area where the property tax and home insurance (or even maintenance repairs) won't cannibalize your savings.

The amount of your down payment and your credit score will affect home affordability in 2026, too.

Consult with a tax professional when necessary. Your personal financial situation ultimately impacts when it's time to move.

Read More

• Eliminating Property Taxes: What Homeowners Gain and Give Up
• Ways to Lower Your Property Taxes in 2026
• Homeowners Face Potential Capital Gains Tax Shift: What to Know Now
• North Carolina’s $15,000 Forgivable Mortgage: How to Qualify in 2026

Alongside surging gas prices and a stubbornly high grocery bill, home insurance premiums have also been creeping up over the last few years.

In the last year alone, average home insurance rates climbed 6%, according to the Federal Reserve Bank of St. Louis. That's more than double the overall pace of inflation for the same time period.

For those who are retired or near it, the idea of runaway premiums eating up more of your fixed income might feel daunting. Fortunately, there are steps you can take now to reign in rising rates.

From senior discounts to planning ahead for insurance costs in retirement, here are six ways to keep your premiums under control as you get older.

Ask your insurer about senior discounts

You won't get a senior discount from every insurance company, but a few do offer them. The age that qualifies as "senior" will vary, as will the discount amount. But, it never hurts to call up your insurer and ask if they offer one.

If the answer is no, you can make it a criteria when shopping for home insurance ahead of your next renewal. Get a few quotes from competitors, then call up the top two or three options you such as to ask whether senior discounts are available.

While you have a representative on the phone, go ahead and ask about any other discounts they offer, too. You might be missing out on some easy ones, like paperless billing discounts — a discount for opting into emailed statements instead of mail.

Look for membership-related discounts

If you have a membership such as AARP, AAA or even Costco, you might be able to leverage it for lower rates. While none of these memberships provide insurance directly, all three have partnered with third-party insurance providers to offer special, members' only pricing.

Rates and availability will vary depending on where your home is located. It's always a good idea to check what insurance-related perks any of your memberships offer.

Make home security upgrades

Boosting your home's defense systems with DIY home security upgrades — think installing a video doorbell or adding smart cameras to the exterior of your house — can help deter burglars. Some insurers offer discounts to homeowners who have these systems.

With any of these security upgrades, the key to getting any potential discounts is to call your insurer. If you're not sure you'd want to invest in the changes if you weren't getting a rate cut for them, call the insurance company first to find out what kind of discounts are available and what criteria you'd need to meet to get them.

Pay your policy in full up front

Nearly all insurance companies will offer a 5% to 10% discount off your premium for paying the full amount for the year up front rather than in monthly installments. Dip into your savings to pay it in full right now, then, pay back your savings with the monthly installments you were planning to send your insurance company over the year.

Pro tip. If your insurer doesn't charge an extra fee for using a credit card, pay your annual premium with a rewards credit card to stack cash back or points on top of your paid-in-full discount. Make sure you have the cash on hand to pay off the credit card in full right after.

Include higher deductibles in your retirement plan

You don't have to be over a certain age to enjoy lower premiums in exchange for agreeing to higher home insurance deductibles. But when you're living on a fixed income, it can be hard to have that kind of flexibility.

If you plan ahead, however, it can be a great way to lower your monthly bill while still protecting your home from catastrophic losses. With this strategy, you're basically agreeing to only use home insurance for major disasters — damage in which the repair bill would irreparably hurt your retirement savings.

If you can plan ahead to set aside a healthy home maintenance fund to cover higher deductibles, you'll have enough savings to cover small-to-medium repair jobs as they happen without needing to make a claim. Then, set your deductible as high as you can comfortably afford and enjoy both the discount from having higher deductibles and from being claim-free for longer periods of time.

Check insurance rates before you downsize

Whether you're dreaming of moving to popular retirement destinations such as Florida or Colorado or you're choosing a new state for other reasons, make sure you check average home insurance rates before you move.

Even if you're using your equity to pay for all or most of your next home in cash, your savings from ditching a mortgage could be all but erased by a $10,000-plus home insurance bill.

But even in states with notoriously expensive home insurance (such as the aforementioned Florida), premiums vary widely from one county to the next.

You don't necessarily have to give up your retirement plans. You just need to do your research first to pick a location that fits your budget as well as your lifestyle.

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• Do You Need Umbrella Insurance?
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If your travels bring you to my town, and you'd like a great cup of espresso and a dose of neighbors acting un-neighborly, please drop by our office.

While I fix the coffee, my wife, Anne, will hand you a box filled with emails, photos, video clips and frustrating correspondence from readers who have begged neighbors to please trim or remove trees that pose an imminent, direct risk of harm.

Fans of Judge Judy will immediately see a parallel: Some dog owners — who left their dogs off leash and someone was bitten — remain in complete denial of all responsibility, despite clear evidence of fault.

They love their dogs and can't grasp that their well-trained bundle of face-licking joy is still an animal who might not always be a good boy, and possibly, because of his breed, could be excluded from homeowners insurance coverage.

A eucalyptus that is taller than a nearby utility pole and transformer

I have often been asked for help by readers across the country who have tree issues with neighbors, and generally, we have a good outcome — when dealing with reasonable people. And then there are people like "Beth" who have stubborn neighbors.

"Mr. Beaver," Beth wrote, "all of the old, classic houses on our block have been transformed into professional offices. We are across a narrow alley from 'Rick.'

"Rick has a giant eucalyptus tree that is taller and less than four feet from a utility power pole with a high-voltage transformer on top. We retained a certified arborist whose report stated, 'These are fragile trees, and, even without wind, they can often break and fall. If it does — and in the direction of the pole, wires and high-voltage transformer — an explosion and resultant fireball will endanger the neighborhood.'

"We sent Rick a copy of the report in a polite text and offered, at our expense, to trim the tree, but Rick replied, in so many words, 'Pound sand!' What can we do?"

She sent me the text chain. Where she was polite and focused on the good of the neighborhood, Rick was just plain nasty. It made me angry, and I wondered how someone becomes so cynical and uncaring about his impact on his neighbors.

So, what can you do when dealing with neighbors who just do not care to protect even themselves?

You begin by proving their negligence

First, we need to eliminate the "act of God" defense insurance companies often raise that goes something like this: "So sorry, but this was an act of God that could not have been predicted, and the insurer is not responsible."

Until that happens (don't hold your breath), this is what you can do on your end: Create a paper trail showing that your neighbor was notified about the tree's dangerous condition. Follow these steps:

1. Speak to your neighbor.

When you speak with them, give them a polite letter that could resolve the issue without further action. It should explain your concerns about the hazard the tree poses to your property and the neighborhood's safety.

You'll also want to talk to them outside, where you can point to the specific tree. If possible, ask a family member or friend to video the discussion, unseen, so you have proof that the discussion occurred. (It is legal to do this.)

While you're talking, adopt the attitude, "If something were to happen, consider that your homeowners insurance will try to deny coverage and say that you, personally, have to pay for the damage, and my letter will show them that you were on notice and not trying to deny being aware of the issue."

This protects you significantly because you'll have proof that you let the neighbor know about the hazard, and while they disagreed, they can't claim ignorance of the issue.

2. Document everything.

Take photos and video that clearly show the tree's defects — overhanging dead branches, significant lean, visible fungus/decay.

3. Hire a certified arborist.

You should hire someone who has a tree risk assessment qualification (TRAQ) and ask them to do a Tree Risk Assessment Report that identifies the tree as a "hazard." This is a powerful tool for establishing negligence.

4. Obtain two to three written estimates for the cost of trimming or tree removal.

This will show your neighbor the exact financial scope. Maybe let them know that they will look like miserly cheapskates should the issue wind up in the newspaper or on the local news. (If your neighbor is strapped for cash, offer to help cover the cost of the trimming or removal.)

5. Bring the issue to the attention of local media.

They love stories like these and often enjoy getting involved in a way that resolves an infuriating safety issue like this.

6. Notify county/city code enforcement and your local energy supplier.

Many municipalities have ordinances that require homeowners to manage hazardous conditions on private property. Getting someone to actually do something might be a long shot, but it's worth a try.

The takeaway: Your best bet is to bring this issue to the attention of your neighbor. That way, the insurance company can't claim your ignorance as a basis to avoid accepting the claim.

Trees add beauty and value to our homes, and we need to take care of them, especially when they become a danger to our homes and neighbors. After all, a tree that falls onto a transformer and catches fire could wipe out an entire neighborhood, not to mention kill people.

And since I don't like to end on a negative note, consider this: We owe it to our trees — especially beautiful trees that provide shade in summer — to care for them. We also owe our neighbors protection from anything that could harm them.

Trees, and other beautiful vegetation, existed before mankind and will hopefully remain on this earth long after we're gone. Give them a chance at survival — inhibit their tendency to lose a limb — and Mother Nature will reward us.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You've heard the advice to shop around for new quotes once in a while to see if you can beat your insurance company's renewal offer. But what if you shop around ahead of every renewal? And what if you get a better quote somewhere else every time? Is there any reason you shouldn't hop from one provider to another every year (or every six months) to get the best price?

The short answer is no. If you're constantly seeing lower prices elsewhere, there's not really a good reason to choose the more expensive premium just for the sake of not being a policy hopper. Despite the loyalty discounts your current provider might be offering, loyalty rarely pays in insurance.

With that said, there are some tradeoffs you make by frequently switching your insurance, and there are some considerations to keep in mind before jumping ship. Here are some of the things you might be sacrificing by switching – whether or not they matter depends on your situation.

You'll lose out on certain discounts

Say you previously bundled your home and auto insurance to take advantage of a discount your insurance company was offering. Now, you've found cheaper car insurance through another provider, but your home insurance isn't up for renewal yet, or you still like the price you're paying where you're at.

Before making the switch, find the breakdown of how your current premium was calculated. If you've bundled multiple policies, get the breakdown of each policy in the bundle.

As an example, I bundled home and auto last year because the same company offered the best price for both – and it was even better after the bundle discount. This year, I was able to find a lower price on car insurance from another provider.

Before switching, I checked my current paperwork to see how much of a discount I was getting on home insurance by bundling. The discount was about $200. Meanwhile, the competitor's quote for car insurance was about $500 lower than the renewal offer. So I switched. Even though my home insurance premium will go up a bit when I lose that discount, I'm still paying less overall than I would be if I'd kept the bundle.

But, if the price difference you see isn't enough to offset any discounts you'll lose, it's probably better to stay.

Another common discount that you could lose when you switch is your loyalty discount. This is a modest premium discount that sometimes gets bigger the longer you've stayed with the same company. But the loyalty discount isn't always better than the introductory rates a company will offer to win over a new customer, so it's always worth shopping around at each renewal.

You may not be eligible for certain benefits

Beyond certain discounts, there are other perks sometimes tied to how long you've been with your insurance company. The main one here is accident forgiveness. This is a benefit that basically shields your policy from a rate hike following an accident.

Sometimes, it's based solely on your driving record. In that case, whether you're a new or long-term customer doesn't matter. What matters is how long it's been since you last had an accident. But some companies restrict accident forgiveness to customers who've been with the same provider for a certain length of time.

Is accident forgiveness worth staying with your current insurance provider despite the higher premium? That depends. If you don't have any accidents on your record and you're a safe driver, maybe not. If you've already had an accident and used this perk to keep your premium lower, you might want to stay to keep it active.

Do you know whether the new, lower quote you found already factors in that accident on your record? If not, the lower premium from the competitor is likely to jump once the company checks your claim history. If yes, then your current provider's accident forgiveness isn't really saving you money.

Make sure the coverage is comparable before switching insurance

If you get a new quote that's a lot lower than your renewal offer, you might be ready to take the leap. But before signing that paperwork, make sure to compare the policies side by side. Is the coverage actually the same? Are there any exclusions the new policy has that the old one doesn't?

If you got a quote for a policy with, say, a higher deductible than you currently have, have you compared that to what your current company would charge if you raised your deductible by the same amount?

Shopping around is a great time to reevaluate your coverage needs and see what tweaks you can make to save. But if you're making any changes to your coverage, get a quote from your current provider for that changed coverage, too. That way, you're comparing apples to apples to make sure you're truly getting the best available price.

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If you own a second home, such as a vacation property, second home insurance can help protect both the home itself and your finances. But coverage becomes more complex when someone else lives in the property, making it essential to choose the right type of policy for your situation.

Several insurance options may apply to a second home, including homeowners, landlord and rental policies. Each is designed for different living arrangements, and the right choice depends largely on how the property is used and who occupies it.

That distinction matters more than many homeowners realize. In fact, insurers often focus less on who owns a property and more on who lives there — a difference that can determine whether a claim is covered or denied.

Why who lives in your home matters to insurers

A recent case in Massachusetts demonstrates the issues that can arise when someone else lives in your home. According to Insurance Journal, the Massachusetts Appeals Court ruled that a property owner’s grandson was not a member of the household for insurance purposes; the court upheld the insurer’s right to deny a claim the property owner had filed involving the grandson.

In this case, occupancy mattered more than property ownership for insurance purposes.

Who lives in your home directly affects the level of risk insurers take on, which can change the type of coverage you need. If a property is your primary residence, owner-occupied homeowners insurance is typically appropriate. This type of policy covers the home’s structure, your personal belongings and personal liability.

If you own a property but do not live there, you’ll generally need a non-owner-occupied or landlord policy instead. These policies still protect the structure of the home, but they’re designed to account for tenant-related risks, including liability coverage for injuries that occur on the property.

It’s also important to clearly distinguish between long-term guests and tenants. In many cases, a guest staying temporarily in your home may be covered under your existing homeowners' insurance. However, once someone is considered a tenant, landlord insurance is typically required to ensure you’re properly protected.

Family relationships don’t automatically change that classification. If a family member lives long-term in a secondary home where you do not reside, insurers may still treat that person as a tenant. In many policies, a stay of 29 days or more can trigger a tenant classification, though the exact threshold varies. Because definitions differ by insurer, it’s best to confirm how your provider categorizes occupants and adjust your coverage accordingly.

Common situations where coverage can quietly change

Shifting living situations can cause your coverage to change, and you might not even be aware of it:

• An adult child or grandchild living in your secondary home for more than 29 days is typically considered a tenant, which usually requires a landlord policy rather than standard second home insurance.
• If you inherit a home during probate, you will need to take out a new policy once the home is transferred to your name. The type of policy will depend on factors like whether it will be a second home and who will be living there.
• Second home insurance may be suitable for a vacation property used only seasonally by you. However, if you rent the home out — even part of the year — you’ll generally need a rental or landlord policy.
• If you allow a family member to stay in your second home temporarily, they may initially qualify as a guest. Once their stay extends beyond 29 days, however, insurers may classify them as a tenant, triggering the need for landlord coverage.

What kind of insurance you may actually need

Below are some of the most common types of insurance that may apply.

• Homeowners insurance is intended for your primary residence. It protects your home’s structure and your possessions, and it includes liability coverage for you and your family.
• Landlord or dwelling policies are designed for properties you own but don’t live in. They generally cover the structure of the home and include liability protection if a tenant or visitor is injured on the property.
• Umbrella liability policies provide additional liability protection once the limits of your primary insurance policies are reached. They can help cover bodily injury, property damage and certain personal injury lawsuits, and they often include legal costs such as attorney fees and settlements. Umbrella policies typically do not cover your own injuries, damage to your personal property or losses resulting from criminal or intentional acts.

Use the tool below, powered by Bankrate, to explore and compare some of today's top home insurance offers:

How liability claims can affect your finances beyond the property

Liability claims can have significant impacts on your finances, including:

• Personal assets at risk: If a liability judgment or settlement exceeds your insurance policy’s limits, you are responsible for the remaining balance. Depending on state law, creditors may be able to place liens on personal assets — including home equity — to recover what is owed.
• Future insurability: A large liability claim could prompt your insurance provider to cancel your policy. It may be harder to find insurance coverage because of the past claim, and you might need to purchase high-risk insurance, which has more expensive premiums and is more limited than standard home insurance policies.  
• Higher premiums and non-renewals: Your insurer might not renew your policy after a liability claim. If they do renew the policy, your claims history could drive up your premiums, even if you shop around for a new insurance policy.

What to check before — and after — someone moves in

Before and after someone moves into your property, make sure that you have the right insurance for the specific situation:

• Notify your insurer: Contact your insurance provider before someone moves in and confirm the planned move-in date.
• Confirm occupancy classification: During that conversation, verify how the insurer will classify the individual(s) living on the property. This is the time to confirm whether your current policy is appropriate or whether you need different coverage so the policy is in place before occupancy begins.
• Review liability limits: Having someone live on your property can increase liability risk. Review your liability limits and consider whether increasing coverage or adding an umbrella policy makes sense.
• Document how property is used: Keep records of how the property is used, including rental agreements if applicable and how often the home is occupied.

When keeping the property vacant may still carry risks

With all of the nuances that come with someone living in your home, it might seem like keeping the property vacant could be safer. Unfortunately, vacant properties are exposed to other risks, including:

• Vacant home exclusions: Many homeowners' insurance policies limit or suspend certain coverages if a home is vacant for an extended period, often 30 to 60 days. After that point, claims may be reduced or denied unless you have a vacant home policy in place.
• Maintenance and injury claims: Problems such as burst pipes or leaking water heaters can worsen in vacant homes because issues may go unnoticed for weeks. As a result, claims can be more severe, and insurers may require vacant home insurance to maintain coverage.
• Vandalism risks: Vacant homes may be an increased target for vandalism, leading to potential damage.

How this fits into today’s housing and inheritance reality

Second home insurance is becoming more important as changing housing arrangements and inheritance trends leave more homeowners responsible for additional properties. Aging parents may move into an adult child’s second home, and multi-generational living has become a practical, cost-saving option in today’s economy. Estate settlements can also result in inherited homes that sit vacant for a period of time, while ongoing housing affordability challenges are pushing families to share properties more often.

When the people living in a property change — or when a home shifts between being occupied, rented or vacant — insurance needs can change as well. Making sure you have the right coverage helps protect not only the property itself, but your personal finances. A quick call to your insurance provider can help confirm that your policy matches how the home is actually used, so you’re protected if the unexpected happens.

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For many homeowners, the idea that an insurance company might quietly fly a drone, or pull satellite images, over their house feels unsettling. Not because they’re hiding something, but because home insurance has traditionally involved human judgment: an adjuster on the ground, a phone call, a chance to explain.

Now, more insurers are using aerial imagery to evaluate homes for underwriting, renewals and claims decisions. In some cases, policyholders say those images led directly to higher premiums or outright nonrenewal without warning.

That push and pull between speed and privacy feels especially real in California right now, where the insurance market is already under a lot of pressure.

A growing trend of insurers in the sky

Insurance companies are increasingly using aerial photos from drones, satellites and aircraft to assess property risk. Images may be taken at renewal, after a claim or even mid-policy, often without the homeowner’s knowledge.

The practice drew national attention after NPR reported on homeowners who said they lost coverage or were asked to make repairs after insurers flagged roof wear, debris or vegetation visible only from above. Some homeowners told NPR the images were outdated or misinterpreted.

In California, local outlets, including ABC7 Los Angeles, have reported similar complaints. In one case, a homeowner said her insurer declined to renew her policy after drone images allegedly showed roof and yard issues that she said did not reflect the home’s current condition.

How insurers are using aerial imagery

From the insurer’s perspective, aerial imagery solves several problems at once. It’s faster than scheduling in-person inspections, cheaper than sending adjusters into the field, and allows companies to review thousands of properties consistently, especially in disaster-prone areas.

Insurers also say remote inspections help them respond more quickly to climate-driven risks like wildfire exposure and storm damage, which have become harder and more expensive to assess in person.

Here are some types of imagery insurers use.

• Drones: Short-range, high-resolution images often used after claims or during renewals
• Satellite images: Broad coverage, sometimes months old, commonly used for underwriting
• Manned aircraft: Used for regional scans, especially in wildfire- or hurricane-exposed areas

What insurers look for in aerial images

• Roof condition (missing shingles, discoloration, sagging)
• Overhanging trees or vegetation touching the roof
• Debris, clutter or objects insurers consider fire or safety hazards
• Additions or structures not listed on the policy

When aerial photos affect your policy

Aerial imagery can influence your homeowners insurance in ways that may not be obvious until you receive a notice in the mail. Insurers commonly use these images during renewal reviews, after a claim is filed or as part of broader risk reassessments in high-risk areas.

If something in the photo raises a red flag, whether it’s a roof that appears worn, tree limbs hanging too close to the house, or items in the yard that an insurer considers debris, that image can factor into decisions about your premium or whether your policy is renewed at all.

In some cases, homeowners are told they must make repairs or clear certain issues within a set timeframe to keep coverage in place. In others, the insurer may raise rates or decline to renew the policy entirely, citing increased risk.

What frustrates many policyholders is that these decisions can be based on images taken from afar, sometimes without context. A shadow, seasonal debris or an image captured before recent repairs may not reflect the home’s actual condition. But it can still carry weight in underwriting decisions.

Homeowners do have rights, though those protections vary by state. Insurers are typically required to provide advance notice before a nonrenewal or major policy change, and many states allow policyholders to request the images used in the decision.

Some regulators also require insurers to give homeowners an opportunity to correct or dispute what the photos show. Still, if these processes aren’t clearly explained, it can lead to confusion about how to push back or even what they’re pushing back against.

How states are protecting homeowners’ privacy and insurance rights

Regulators are beginning to take notice, though rules differ widely by state and continue to evolve. Some states have issued guidance to insurers, while others are considering legislative or regulatory responses.

In many cases, these are guidance statements, proposed rules or regulatory expectations rather than hard statutory bans, and enforcement varies.

• California: Lawmakers have proposed measures that would require insurers to notify homeowners before using aerial imagery and to provide copies of images upon request. The goal is transparency, especially in a market already plagued by nonrenewals.
• Pennsylvania: Insurance regulators have reminded carriers that aerial imagery alone may not meet the legal threshold for a “significant change in risk” required to justify nonrenewal.
• Rhode Island: Regulators have signaled that insurers should rely on relatively recent imagery when making underwriting or nonrenewal decisions, rather than photos that may no longer reflect current conditions.
• Louisiana: Louisiana requires that aerial imagery used in insurance decisions meet freshness and relevance standards, particularly in post-disaster contexts. Regulators expect insurers to distinguish between storm-related temporary conditions and long-term risk factors.
• North Carolina: North Carolina guidance encourages insurers to supplement aerial imagery with additional verification when photos are unclear or inconclusive. The state has pushed back against nonrenewals based solely on images that don’t clearly show damage.
• New Hampshire: Regulators in New Hampshire stress that aerial imagery should not replace physical inspections when images raise questions. If a photo suggests a problem but doesn’t conclusively show damage, insurers are encouraged to take additional steps before acting.
• Texas: State law restricts drone-based surveillance of private property in many circumstances, which has raised questions about how insurers and their vendors collect and use aerial images in underwriting.
• Michigan: Guidance emphasizes accuracy and due process, urging insurers to share images and give homeowners a chance to dispute findings before adverse action.
• Massachusetts: Proposed legislation would regulate how aerial imagery can be used in underwriting and require formal appeal processes alongside nonrenewal notices.
• Connecticut: Regulators have stated that while aerial imagery can be used, it should not trigger nonrenewals for purely cosmetic or minor issues.

Steps to take if a drone photo impacts your policy

For homeowners, the concern isn’t just losing insurance. It’s the feeling of being judged by an algorithmic snapshot taken without consent. Privacy advocates argue that secret flyovers erode trust, especially when the images are never shared or explained.

If you’re affected, here are a few things you can try:

• Requesting the images used in the decision
• Documenting repairs or corrections with your own photos
• Filing a complaint with your state insurance department if you believe the action was unfair
• Shopping other carriers, including regional or mutual insurers with different underwriting practices

What’s next for aerial insurance reviews

Aerial imagery isn’t going away. As climate risks rise and insurers seek efficiency, remote inspections will likely become more common (not less). But regulators are signaling that speed can’t come at the expense of fairness.

The next phase may be about balance: allowing insurers to use modern tools while ensuring homeowners have notice, access to information and a chance to respond. For now, consumers who value privacy and clarity may need to be more proactive than ever about what their insurer sees from above.

Need a home insurance quote? Use the tool below, powered by Bankrate, to explore and compare some of today's best offers:

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Most people don't think of their insurance company as their best friend — unless your idea of friendship involves premiums, paperwork and hold music that sounds like it was recorded a hundred years ago.

But stick with me here: Your insurance, the right insurance, deserves a little gratitude.

Let's be honest. Insurance has a PR problem. Nobody throws a party when they renew a policy. People don't carve "I ❤️ My Homeowners Insurance" on a tree trunk or engrave "Best Policy Ever" on a trophy.

When things go wrong, the first complaint is almost always, "Why is this so complicated?" or "Why is this costing so much?" or the classic, "Why did it take forever to get paid?"

There are real reasons to grumble about insurance. But before we throw the whole concept out like yogurt past its expiration date, let's look at this relationship through a realistic lens, rather than an emotional one.

What people complain about

Let's start with the obvious criticisms people have about insurance:

Insurance is expensive. Of course it seems like it is. Nobody signs up thinking, "I'm so excited to give money to an invisible service I'll use only if my universe collapses." Premiums are a cost you pay before anything happens. Wallets don't like that. Especially if you never actually have a claim. Money is going, going, going … gone.

Policy language is confusing. Policies read like they were written by people who lost a bet about who could use the most semicolons in a paragraph. You need a translator just to understand what coverage A does vs coverage B. And don't look to AI for help. It'll probably just add to your confusion.

Processing claims takes forever. If you've ever filed a claim and felt like you were waiting for paint to dry on a glacier, you are not alone.

The fine print is annoying. Exclusions, sub-limits, endorsements … and it feels like you need a secret decoder ring to figure out what's covered. And yes, font sizes vary.

Those complaints are real, and they matter. But they tell us what people don't like, not why those perceptions exist.

More importantly, they gloss over what insurance actually does, which is step in when life smacks you upside the head (a hard smack, at that) and leave you in a better place than you would have been without it.

The friend you hope you never have to rely on

Think of insurance as the friend who shows up when your kitchen floods at 3 a.m. You're not thrilled you needed help, but that friend dropped everything (in this case, sleeping) and headed over to bail you out (literally).

Here's the part most people forget: The entire point of insurance is to avoid financial devastation when something bad happens. When you have a good policy and a company that stands behind it, it does that remarkably well.

Let's tackle the common complaints with a dose of reality and a little gratitude.

It costs too much. Yes, insurance costs money. A lot of money. And, sadly, you don't get a refund when you don't file any claims. But without it, you're self-insuring. That's code for "if anything bad happens, you'll have to pay for it all by yourself."

Imagine paying the actual replacement cost for your home after a fire. That's not a hypothetical. That's a real bill that lands in your inbox with zero regrets attached.

Policies include confusing language. Yes, policy language is dense. And yes, it often feels like it was written by a committee of people who really wanted everyone to not understand it. That's not the fault of the insurance company — it's a result of how litigious people can be.

Insurance policies are legal contracts that need to cover all possible outcomes, from the obvious to the bizarre. That requires precision, which often reads like an instruction manual for building a quantum computer.

Besides, you don't have to decode it alone. A good insurance agent or broker exists precisely to translate that language into English: "This covers X but not Y, and here's what that means for you."

If you still "don't get it," it's on you to ask for clarification. And if your agent can't clearly explain it, find one who can.

Processing claims takes forever. Or does it? No one enjoys a drawn-out claims process. Waiting for claims adjusters, answering documentation requests and making back-and-forth calls is about as exciting as reading a phone book with mittens on. (Show of hands — or mittens — do you even remember what a phone book looks like?)

But context matters. The claims process is an investigation. The carrier must verify what happened, how it happened and whether the policy applies. That takes time.

The better the documentation you provide — photos, receipts, timelines — the faster the process goes. That's more on us as consumers than the insurance company.

Fast claims aren't magic. They are the result of preparedness, cooperation and a company with the systems to pay what's owed without losing its shirt. Not all insurance companies are created equal, far from it.

And here's the kicker: Without an insurance company reviewing and paying claims, you'd be writing the checks yourself. No one wants that.

The fine print feels shady. Until you realize why it exists. I get it. People hate fine print. Really hate it. They consider exclusions personal insults rather than clarifications to prevent later misunderstandings.

But exclusions aren't designed to frustrate you. They are designed to define what is and what isn't covered. A policy can't cover everything everywhere always without becoming economically impossible. Translation: You would not want to pay the premium required for 100% coverage.

Good coverage actually works when you read and understand it before a claim

One of the funniest insurance phenomena is that some people have strong opinions about their policy without reading it. That's like criticizing a car for not having good brakes without ever test-driving it.

Entire websites have been built to complain about one insurance company or another.

Are the complaints real? Probably. Do they represent only a handful of problems out of tens of thousands or hundreds of thousands of claims? You betcha.

Insurance is only as good as the coverage you understand and maintain. If you don't know you need scheduled coverage for valuables, or flood coverage, or an earthquake policy, the policy isn't failing you, you're failing you.

Here's the part where the gratitude arrives, disguised as plain old logic

Insurance exists to protect you from the financial side of life's worst moments. Without it, you would be on the hook for losses that could wipe out your savings, destroy your retirement plans and bankrupt your family. It happens all the time.

That's not trivial. So insurance isn't optional if you want economic stability. It's not something to shrug off because a quote didn't show a dramatic price reduction this year. Good insurance coverage doesn't make bad things not happen. It makes bad things not destroy you.

So this is why insurance can be your best friend (even if it sounds weird): Friends protect one another. They show up when it matters. They help you when things get bad. They make you feel safe. Your insurance company, when chosen wisely and understood properly, does exactly that.

It's not perfect. It's not always fast, glamorous or intuitive. But it is reliable in the ways that count the most — financially and practically.

And if you can find an agent or broker who actually gets you, explains things without sugarcoating and has your back while filing a claim, then yes, your carrier becomes a partner. Not a faceless name on a document, but a real ally in the story of your financial life.

So take a moment to thank the insurance you do have, and if you still don't think it's good enough, shop for something that actually deserves your gratitude.

Because good insurance, like your best friends, shows up when you need it most.

Want to learn more about insurance? Visit icgs.org.

Related Content

• How to Be a Smart Insurance Shopper: The Price Might Be Right, But the Coverage Might Not Be
• Do You Have an Insurance Coverage Gap for Your Valuables? You May Be Surprised to Learn You Do
• 6 Common Home Disasters Your Insurance Probably Won't Cover
• 'But It's Not My Fault!': Your Insurance Company Absolutely Will Blame You in These Five Scenarios
• Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert Explains

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Your home is a major investment, and you can protect that investment with home insurance. But if you pass away and your beneficiaries can't pay your mortgage, your home could be sold or foreclosed on.

Mortgage protection insurance offers you extra reassurance by paying off your mortgage after your death. Some policies also offer riders that extend coverage to pay your mortgage if you become disabled and can’t work.

Mortgage protection insurance can provide you peace of mind and may make sense for many homeowners, but it's important to understand how this insurance works and its drawbacks to decide if it’s right for you.

How mortgage protection insurance works

Mortgage protection insurance is an optional policy that's designed to pay off your mortgage balance if you die during the coverage period.

The coverage is equal to your outstanding mortgage balance, and you’ll typically pay monthly premiums for a term that matches your mortgage loan term. The monthly premiums stay the same for the life of your insurance policy, but the benefit amount shrinks over time as you pay down your mortgage.

Mortgage protection insurance usually covers the principal and interest portions of your mortgage, but other expenses like property taxes and HOA dues are excluded.

If you pass away, your mortgage insurance will pay off your remaining mortgage balance, so your family doesn’t have to worry about that expense. Your family will still be responsible for those excluded expenses, like property taxes.

While mortgage protection insurance is typically designed to pay off your mortgage if you die, some policies allow you to add riders that expand coverage.

A disability rider may cover your mortgage payments if you become disabled and are unable to work. A job loss rider can help cover your monthly mortgage payment for a limited time if you involuntarily lose your job.

Mortgage protection insurance vs. private mortgage insurance

Mortgage protection insurance is easily confused with private mortgage insurance, but these policies function differently. Mortgage protection insurance is an optional coverage that protects you and your family by paying your mortgage balance if you pass away.

Private mortgage insurance works differently, protecting your lender if you default on your loan. In most cases, lenders require private mortgage insurance if you put less than 20% down on a home, and this coverage isn’t optional.

Mortgage protection insurance vs. traditional life insurance

Both mortgage protection insurance and traditional life insurance take effect after you pass away, but they work differently. Mortgage protection insurance is more limited than a traditional life insurance policy, and it pays only your mortgage. The funds go to your mortgage lender, not to your beneficiaries.

Traditional life insurance provides a benefit directly to your beneficiaries after your death. Your beneficiaries can then use that benefit however they choose, including to pay the mortgage, to cover home repairs or to pay for funeral costs and other expenses. In some cases, you can even use your life insurance benefits while you're alive.

Life insurance is generally more flexible than mortgage protection insurance, and it may be more affordable to get. However, some life insurance policies require a medical exam, and if the exam reveals health issues that make you a higher risk, you may be charged higher premiums.

Mortgage protection insurance doesn’t require a medical exam, which can be helpful if you don’t qualify for traditional health insurance or if you have a condition that means you’ll pay higher premiums.

Pros and cons of mortgage protection insurance

Like any insurance product, mortgage protection insurance involves trade-offs between cost, coverage and flexibility.

To decide if mortgage protection insurance is right for you, it’s important to understand its pros and cons.

Pros

• No medical exam required: Since you don’t need to have a medical exam to get this coverage, mortgage protection insurance might be the only option if you have health issues that make it difficult to get traditional life insurance coverage.
• Premiums are predictable: Your mortgage protection insurance premiums stay the same for the life of your policy. These predictable premiums make it easy to budget for your insurance.
• Peace of mind: Knowing that your home will be paid off if you pass away can give you and your beneficiaries valuable peace of mind.

Cons

• Higher cost: Mortgage protection insurance costs more than an equivalent life insurance policy for healthy buyers.
• Declining benefits: Since mortgage protection insurance pays off your mortgage balance, the policy’s benefits actually decline as you pay off your mortgage each month. Though the benefits shrink, you’ll still pay the same monthly premium.
• Limited usage: The benefits can only be used to pay the mortgage, and they’ll be paid directly to your mortgage lender. Your family can’t use the benefits for any other purposes.

Who should consider mortgage protection insurance?

Mortgage protection insurance may make sense depending on your situation. If your beneficiaries will inherit limited assets to cover the mortgage after you die, mortgage protection insurance can help pay for this major expense. It could help your family to be able to remain in your home without having to worry about the mortgage.

This coverage can also be an appealing option if you don’t qualify for affordable life insurance. While it’s more limited than a life insurance policy, mortgage protection insurance can still help you to cover the expense of your home’s mortgage for your beneficiaries after your death.

You might also choose mortgage protection insurance simply because you want to ensure that your heirs aren’t burdened with a mortgage payment. Ensuring your home will be paid off can help reduce their stress during a highly emotional time.

Alternatives and smart shopping tips

Carefully consider whether mortgage protection insurance or another type of insurance might be better for you. Term life or permanent life insurance might make more sense if you’re in good health and can qualify for low rates, as well as if you know your beneficiaries will need funds to pay for other expenses, like funeral costs, after your death.

Remember that mortgage protection insurance is optional, and lenders cannot require you to purchase this coverage. It’s up to you to decide whether this type of policy makes sense.

As you shop, take the time to get quotes from multiple providers. You may want to get quotes for different riders, too, which can extend your coverage so that it applies to different situations, like if you’re disabled and can’t work.

Be sure that you completely read the policy terms and that you understand any exclusions before you choose which policy is right for you.

Explore and compare some of today's top home insurance offers with the tool below, powered by Bankrate:

Related content

• 5 Ways to Shop for a Low Mortgage Rate
• What to Watch for When Refinancing Your Home Mortgage
• Builders Are Offering Big Mortgage Incentives — What Homebuyers Should Watch For

Homeownership is expensive, so many homeowners are on the lookout for ways to offset the costs and pad their emergency fund. With tax season approaching, one of the best ways to do that is claim tax credits and tax deductions you're eligible for as a homeowner.

While there are many tax breaks for homeowners filing their 2025 taxes — such as mortgage interest or property taxes — home insurance is unfortunately not one of them, except in a few circumstances.

Still, it's worth understanding when and how you can deduct home insurance premiums, in case one of those circumstances applies to you.

When is home insurance tax deductible?

Home insurance premiums generally aren’t tax-deductible. However, in certain situations, you might be able to deduct all or part of those costs as a business expense, which can lower your taxable income. Those scenarios include:

You have a home office or use your home for business

If you work from home or use it for business purposes — for example, running a day care out of your home — you can claim a portion of your home insurance premiums and other home expenses as a business expense.

You're paying for home insurance on your rental properties

If you own rental properties, your home insurance premiums will also count as a business expense, helping to lower your taxable income. Keep your personal and business records separate, and consult a financial adviser or tax professional for trickier situations, such as renting out your vacation home for part of the year.

One related change to watch starting in 2026 involves private mortgage insurance (PMI). Under new tax rules, PMI tied to home purchase loans will be treated as deductible mortgage interest for taxpayers who itemize.

That means some homeowners who pay PMI and itemize their deductions might be able to deduct those premiums going forward.

However, this applies to mortgage insurance — not standard homeowners insurance — and won’t affect 2025 tax returns. Income limits and other eligibility rules might also apply, so it’s worth checking with a tax professional before assuming you’ll qualify.

Keep track of all of your home expenses anyway

While you generally can’t deduct homeowners insurance premiums, other housing-related expenses might qualify for tax breaks.

Certain mortgage-related costs that aren’t deductible today might become eligible again in future tax years, depending on legislative changes. Keeping good records of your home expenses can help you stay ready to take advantage of any savings opportunities that open up.

In the meantime, you can offset the cost of protecting your home by shopping around for lower premiums. Use the tool below, powered by Bankrate, to see how much you could save on home insurance:

Related content

• Reasons Your Home Insurance Costs Are Surging
• What Is the 80% Rule in Home Insurance?
• Should You Get Home or Car Insurance Through Costco?
• Surprising Things Your Home Insurance Won't Cover

People love expensive things. They love showing them off to other people. They love buying them, wearing them, hanging them on walls and casually saying things like, "This old thing?" when someone notices, even though they are totally excited about it being noticed.

What they love considerably less is thinking about what happens if those things disappear, break, burn, flood, fall off their wrist or get stolen from their hotel room while they are downstairs ordering coffee.

This is where insurance for valuable items comes in. And yes, I know what you are thinking: "I already have homeowners insurance. I am covered." Not the case — see my Kiplinger article Wait, My Homeowners Insurance Limits What?

Think of your standard homeowners policy like a carry-on bag. It is great for essentials. It is not designed to safely transport a Rolex, a diamond necklace, a rare painting and a fur coat without consequences. Big consequences.

Covering your fancy stuff

Most homeowners policies do cover personal property. That is true. What they do not do well is cover high-value or unique personal property — your fancy stuff. The stuff you're wearing when you raise your pinkie during high tea.

High-value items almost always live inside personal property sublimits. Jewelry, watches, furs, fine art, collectibles and memorabilia are usually capped at amounts that sound reasonable — until you remember what these items actually cost. A few thousand dollars covered here. A few thousand dollars covered there. Meanwhile, the ring on your finger cost more than your first car. (Well, my first car, for sure.)

It is not that insurers are being sneaky. It is that a homeowners policy is built for couches, clothes and televisions. You would not want to pay the premium on a policy that covers expensive firearms when you don't own any.

Assuming those items are fully covered under a basic policy is like assuming the airline that lost your luggage will pay for all the expensive jewelry you stuffed in your bag. Technically, there is coverage, but not the kind of coverage needed to pay for thousands of dollars in lost jewels.

People tend to discover coverage gaps the same way they discover termites — after the damage is done. A ring slips off in the ocean. A watch disappears from a hotel room. A painting cracks during a move. A fire destroys the house or causes the kind of smoke damage where everything smells like a campfire.

Insurance companies did not invent special coverage for valuables to upsell you or make you mad. Honest. They invented it because these items should be treated differently from regular household stuff.

Valuable items tend to be smaller, easier to lose, easier to steal, much harder to value and harder to replace (sometimes even impossible to value and/or replace). They are also more likely to leave the house. A couch stays put. A necklace can go anywhere.

What to do to get these items covered

"Scheduling an item" means you are telling the insurer exactly what it is, what it is worth and how it should be insured. In return, you usually get broader coverage, fewer exclusions and claims that make sense in the real world.

Another quiet trap is valuation. People assume "replacement value" means "what they paid." Sometimes it does. Sometimes it absolutely does not. Art appreciates. Watches spike in value. Vintage jewelry is not sitting on a shelf waiting to be bought at yesterday's price. And custom pieces often cannot be replaced at all, only re-created at a much higher cost, if they can be re-created at all.

Scheduled coverage forces you to have this conversation upfront. Appraisals get updated. Values get agreed upon. Expectations get aligned before anything bad happens. That's what it is designed to do. That alignment is worth far more than the premium difference, if you ask me.

Other issues to consider

There is another reason people have insurance issues with valuables, and it has nothing to do with money. It is sentimentality.

For instance, they may try to insure something for more than it's worth and discover that their expectations are not aligned with the reality of what they would get for the item if something happened to it.

People also tend to assume their items are safest locked up at home. That is often not the case. I've seen a wall safe pulled out through an outside wall. Seriously.

Theft rates spike during travel — when you leave your valuables at home and when you have them with you. Losses can happen when you're moving. Damage can happen during renovations. Storage units can flood. The point is that it's not enough to simply "secure" your valuables — you need to insure them, too.

When a scheduled item is lost or damaged, the claim process is usually faster, cleaner and less adversarial. There is less arguing about whether it existed, what it was worth or whether it fits inside a personal property sublimit. The carrier already knows what the item is. That changes the entire tone of the conversation.

Anything that would make you say, "That was expensive" or "I would be sick if that disappeared" probably deserves a closer look:

• Artwork
• Antiques
• Musical instruments
• High-end cameras
• Designer handbags
• Wine collections
• Firearms
• Rare books
• Sports memorabilia
• Coins
• Stamps

Buying insurance for your valuable items is not about being fancy or paranoid. It is about matching coverage to reality, or at least what you think is your reality.

If you own things that would cause real financial pain if they were lost, stolen or damaged, relying on standard homeowners coverage is like locking your screen door and thinking your home is totally secure, even though the dog has run through the screen half a dozen times.

Want to learn more about insurance? Visit icgs.org.

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• I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)
• 'But It's Not My Fault!': Your Insurance Company Absolutely Will Blame You in These Five Scenarios
• Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert Explains

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Most people treat reporting an insurance claim the way they treat going to the dentist. They know they should do it soon, they feel a twinge of dread, and they convince themselves that waiting a little longer will somehow make things easier.

Spoiler alert: Waiting can make things worse.

Nearly every insurance policy includes a notice provision requiring you to report a loss promptly, sometimes phrased like "as soon as is reasonable," "as soon as possible" or "when practically possible."

Blow that off long enough, and you can hand your carrier a perfectly good excuse to deny your claim.

Here are the top five reasons why reporting your claim fast is important.

Reason No. 1: Your policy requires prompt notice

Insurance is a contract. Not a vibe, not a handshake. An actual contract between you and your insurer. If you want the insurer to follow their part of the contract, you have to follow yours.

A policy usually says that when something bad happens, you must notify the carrier promptly.

If you wait too long, the insurer may argue late notice and deny coverage, especially if the delay harmed their ability to evaluate the claim or caused additional damage to occur.

This is even more critical with claims-made policies, which are common in professional liability coverage.

With those, coverage isn't just about when the event occurred. It's about when the claim is made and reported.

Miss that window, and you can be out of coverage even if everything else is legit.

Bottom line: The policy language telling you to report claims promptly isn't a friendly suggestion — it is a requirement.

Reason No. 2: Early reporting lets the carrier help stop the bleeding

Losses have a bad habit of getting worse if you don't do something about them. Some policies' language specifically states that you must do what a prudent person would do in order to prevent further loss or damage.

A small water leak could become a mold circus. A wind-damaged roof could turn into a soaked attic the next time it rains. A stolen catalytic converter could lead to more theft if the car sits outside unrepaired.

Carriers have vendor networks, mitigation pros and claims reps whose job is to help prevent further damage once a loss happens.

Remember that you and the insurer are aligned here — neither one of you wants more damage to happen.

Reason No. 3: It preserves evidence and allows for a cleaner investigation

Insurance claims are part storytelling, part proof. The longer you wait, the more the story gets fuzzy and the more likely the proof gets harder to come by. Facts fade, and that's no good.

Adjusters need to see things close to how they were right after the loss. Water dries. Debris gets hauled off. Damaged items get tossed. Scene conditions change.

When notice is late, insurers can argue they were prejudiced because they couldn't investigate properly, which becomes fuel for denial or dispute. Again, easy to avoid.

Think of it like trying to take a photo of a car accident three weeks after the cars have been towed. And yes, I've seen people try to reconstruct their accident because they didn't take pics when it happened. More than once.

Quick reporting means the carrier can document damage, verify cause and move the claim forward without having to guess what happened.

Reason No. 4. It speeds up your payout and your repair timeline

This one is painfully simple: The claims clock doesn't start until the insurer knows the claim exists. I call this the wait-and-hurry-up process. You wait to file your claim, but then you want the insurer to hurry up to cover it.

Prompt notice lets the carrier open a file, assign an adjuster, schedule inspections and authorize repairs. The sooner that starts, the sooner you get paid and the sooner your life returns to normal.

And if that isn't enough to sway you, consider that delays don't just create paperwork issues. They create real-world issues:

• Contractors might be booked up
• Temporary housing may no longer be available
• Your rental car coverage may no longer apply
• Inflation could push repair costs up even higher

Reason No. 5: It protects you from fights over coverage

Late notice is one of the most common openings for coverage disputes. Period. And it's one of the easiest to avoid. Most insurers let you report a claim by making a call or even using a smartphone app.

So what does "timely reporting" actually mean?

Policies rarely give a perfect number for every scenario. You'll see language like "promptly," "as soon as practicable" or "within a reasonable time."

That flexibility is not a gift you should interpret as "take your time." It's meant to account for real life — hospital stays, evacuation, emergencies. Don't create an excuse for a problem later.

A good rule of thumb:

• Report as soon as you are safe and able
• If you are unsure whether it's a claim, report it anyway. Many carriers can open an incident file without forcing you to proceed or counting it as a claim. Be sure to ask your insurance agent or broker about this.

There is almost no downside to reporting a claim early. There can be a massive downside to reporting late.

Common excuses for delays and why you shouldn't use them

I've heard these reasons for not reporting a claim:

• They hope it will be cheap to fix themselves
• They don't want their rates to go up
• They are embarrassed
• They are busy
• They don't want to deal with the process
• Their spouse said they'd do it but didn't

I get it. But none of those reasons will cost you more than losing coverage entirely or paying for preventable extra damage out of pocket.

If you are worried about the potential impact on your premium, talk to your licensed insurance agent or broker before you decide to file a claim. But don't let fear of a maybe lead to a guaranteed problem.

Here's what to do when a loss happens:

• Make it safe. Stop water, secure property, get medical help
• Document quickly. Photos, video, receipts, names, dates
• Notify the carrier. Same day if possible, certainly within days
• Follow instructions on mitigation. Keep receipts
• Stay responsive. Claims move at the speed of cooperation

The fastest way to turn a covered loss into an uncovered one is to treat the notice requirement like it's a suggestion.

Want to learn more about insurance? Visit icgs.org.

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• Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert Explains
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When you think of natural disasters, you probably think along the lines of hurricanes on the East and Gulf Coasts, earthquakes and wildfires out West and tornadoes in the South and Midwest.

But that mental map is about as current as knowing all of your neighbors by name. (And don't pretend you do.)

The last couple of years have been a master class in geography-free chaos: near-historic tornado seasons in the central U.S., catastrophic hurricane-driven flooding pushing far inland, repeated flash floods in places that used to call such flooding a once-in-a-generation event and a West Coast fire season that seems to never quite clock out.

So yes, even if you live somewhere that "doesn't get" natural disasters, you need to prepare for them. Because they can happen anywhere now.

Old-fashioned insurance buying

A lot of people still buy insurance like it's the 1990s. The logic sounds familiar:

• "That doesn't happen here."
• "My house is built on granite."
• "My house was built in the 1920s and is still here, so it ain't going anywhere."

While those thoughts might have been logical in the past, they aren't anymore.

NOAA counted 27 separate U.S. disasters costing $1 billion-plus in 2024 alone, and the recent five-year average is more than double the long-term average. Translation: Big disasters aren't rare events these days — they're recurring guests who don't bring wine, cookies or snacks. #rude

Let's start with fire and floods

On the West Coast, the big headline is still wildfire. California logged thousands of fires in 2025 and hundreds of thousands of acres burned.

Even if your house isn't in the bull's-eye, fire creates secondary risks, like smoke damage, the effects of shut-down utilities (such as power and water) and the always-rising costs of post-fire recovery.

Then there's water. Atmospheric rivers — and I can't believe I'm using that term — and intense winter storms have turned formerly "dry" areas into surprise swimming pools with zero warning. The West Coast now swings between drought and deluge like a pendulum with a grudge.

Hurricanes and other storms

On the East Coast, the story is not just hurricanes hitting the shoreline. It's hurricanes dragging biblical-level rain hundreds of miles inland. Noah could have brought his Ark right into your backyard.

In September 2024, Hurricane Helene made landfall on Florida's Gulf Coast as a Category 4 storm, then produced unprecedented inland flooding and landslides across the southern Appalachians.

Communities far from the beach took catastrophic losses. Many of those people no doubt thought that couldn't happen to them, and yet …

A month earlier, Tropical Storm Debby hit Florida and South Carolina, then soaked the Carolinas and dumped heavy rain into the Mid-Atlantic and Northeast, triggering flash floods. Surprise again.

And if you think, "That's still coastal-adjacent," you might want to talk to folks in Vermont. They had repeated flash floods during the summer, including major events in July 2024 and again in 2025.

Don't forget tornadoes

Mother Nature doesn't ignore our fellow Americans in the central U.S. Those areas have seen tornado seasons that are both high-count and high-intensity.

Our NOAA friends called 2024 a near-historic year for tornadoes, with the second-highest count on record. A multistate "superstorm" outbreak in March 2025 produced more than 100 tornadoes and major damage in the Mississippi Valley.

On top of tornadoes, hail and straight-line wind events are wrecking roofs, siding and cars in places where people used to say, "We just get thunderstorms."

You don't prepare for disasters because you're dramatic or a catastrophist. You prepare because disasters are basically happening everywhere you want to be.

And this leads me to one other fact: When you see a national weather map with lots of activity on it, then you can expect that more insurance claims are going to happen. That means more insurance claims, and more claims mean higher insurance premiums.

It isn't personal, or price-gouging, it's just math.

Check out these Kiplinger articles for information on how to prepare yourself and your home for disasters:

Everyone Needs to Prepare for Earthquakes, Even if You Don't Live Near a Fault Line

How to Prepare for a Hurricane and Other Natural Disasters

How to Prepare for an Emergency

Retirees, Be Prepared for a Natural Disaster

Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and Fires

How to Protect Your Home from Natural Disasters with the Right Insurance

How to Save Financial Documents and Information in Case of a Storm or Wildfire

14 Must-Have Items for Your Home Emergency Kit

Hurricane Insurance Claims: 10 Things You Should Know

Post-Disaster Financial Planning: How to Protect Your Assets

Want to learn more about insurance? Visit icgs.org.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Winters in the south can be spectacular. There's nothing like having the sun kiss your cheeks, forgetting the bone-chilling conditions you left for the tropical oasis you're currently enjoying.

But as snowbirds know, your home is left behind and has to deal with any harsh winter conditions it encounters.

And if you return home and find damage, you might be in for another surprise: Your provider might not cover it. Because of that, you'll want to address these common insurance gaps before taking off for the winter.

Leaving your home unoccupied

Say you return home after a restful season, only to discover some minor damage from a leaky roof shingle. No worries, you call your home insurance carrier to start a claim, and they ask if someone watched the home while you were away.

How you answer that question can determine whether you're out thousands or just your deductible. Some insurance companies won't cover home damage if the homeowner isn't home for 30 days or more and doesn't assign someone to watch it under the vacancy clause.

This is why it's integral to have someone visit your home regularly while you're away. They can pick up anything that arrived that you might have forgotten, and check to ensure your home is OK.

To see if this applies to your home, contact your insurance carrier. It's also a great time to shop around to see if you're receiving the best deal. Use this Bankrate tool to compare options fast and save money:

Failing to protect your pipes

One area that winter weather impacts the most is your home's pipes. If your insurance carrier determines that your pipes burst due to you turning off your heat or because you failed to insulate them properly, you may be liable for all the damage the leaks wrought.

That is why you'll want to do the following:

• Outside: If you have any garden hoses connected, remove them, drain them and store them somewhere dry. Next, you'll want to shut off any outdoor water valves. You can find these inside your home near the pipe on the wall that goes outside.
• Insulate your pipes: You can buy foam insulation at your local hardware store, cut it to size, wrap it around the pipe and secure it with insulation tape. Doing this will keep the pipes warmer, making them less likely to burst when the temperatures dip.
• Turn off the water supply: On the day you leave, shut off the water supply entirely, unless you have someone planning to housesit for a portion of the trip. To locate the main valve, look for the point where the water pipe enters your house, typically near your water heater, basement or crawl space.
• Lower, don't turn off the heat: Set your thermostat eight to 10 degrees cooler than you normally have it while there. This keeps your home cooler without shutting off the heat entirely, which can make your pipes more susceptible to damage.

Keeping your car stored outside

If there's a vehicle you don't plan to take on your winter journey, you want to ensure it remains in an airtight garage or car capsule before leaving. The reason? Over the winter, critters of all types can find cars and use them as nests to build their families.

As cute as that sounds on the surface, they'll also chew through wires and other critical components to make room for their growing family. When you return, you may encounter lengthy repair times, particularly if you have a luxury, foreign or antique vehicle.

Additionally, some auto insurance carriers are removing animal damage from their comprehensive policies. That means you could be liable for paying for all damages incurred from these furry little critters. And some of these repair bills can be tens of thousands of dollars.

The solution? Contact your current insurance carrier to see if you have protection. And if they don't offer it, you can use this Bankrate tool to shop around for a carrier that does:

The bottom line on insurance gaps for snowbirds

Before you travel south for the winter, know there are some insurance gaps you'll need to address before leaving. Doing this ensures you protect some of your most valuable assets while also preventing you from being liable for any damages that occur while you're gone.

Related content

• A Nasty Surprise Awaits Snowbirds: Thousands in Unexpected Bills
• Reasons Your Home Insurance Costs Are Surging
• Surprising Things Your Home Insurance Won't Cover

Insurance companies care about fault. And I mean fault in almost every way conceivable.

Let me highlight five ways in which fault matters and what you can do (in some of the cases) to help ensure that you don't get canceled by your insurance company.

1. Premium payments

Whether you pay your insurance bills online or by mail or you walk through the door of your insurer's office and hand over cash (yes, some clients do this), paying your premium is your responsibility.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Even if your bank fails to send the payment you set up through them, while it may not be your fault, your insurance company will most likely hold you responsible (there could be some exceptions, though).

Same deal with your credit card. Say you have to cancel your card because you lost it or it was stolen, and then you forget to update your payment info with the insurer. If a premium payment gets kicked back because the account is no longer active, that is on you.

What you can do: Ensure all payment info is up to date when you set up the payment and check to make sure the payment was made on the date that you requested.

2. Risks to your home

If your next-door neighbor doesn't maintain their landscaping and that results in a tree hanging over your house, your insurance company will likely see that as a risk they do not want to take and non-renew you.

It may not be your fault — it is not even your tree — but if the tree could fall on your house or catch fire in a wildfire, that makes you a higher risk.

What you can do: Unfortunately, there's not much you can do here other than politely ask your neighbor to address whatever landscaping is putting your property at risk. The key word here is "politely."

3. Application mistakes

You may not be the one who completes your insurance applications. Your significant other might do it, for example. Or you may have an assistant who does it if you are a small-business owner. Maybe all you do is sign the insurance applications.

But what if that other person makes a mistake on the application? What if they list something materially wrong that would impact whether you would qualify for the insurance plan at a particular price?

Well, it doesn't matter. Your John Hancock at the bottom of the form confirms you understand and agree with everything above. The mistake isn't your fault, but you own it with your signature.

What you can do: Make sure you carefully read over any applications before you sign them.

4. Concentration risk

An aggressive insurance company writes up a ton of business in your neck of the woods. It seems like everyone on the street has insurance with the same insurer because someone at the company identified your area as a good one to insure, and life is good.

Unfortunately, that person leaves the company, and her replacement sees only one thing — a high concentration of risk in the same area.

Chances are, the new person is going to start removing some of those risks so the company is not in the position that one large loss in your area could set its claims pocketbooks on fire.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Not your fault — you didn't decide to approve all of your neighbors with the same insurance company, but you may still get a non-renewal notice.

What you can do: Not much you can do here, since you might not know that you and all of your neighbors have the same insurer.

5. Conflicting narratives after an incident

After being involved in a car accident, you might note that at least all involved are fully intact, except maybe the vehicles. Your next thought may be that this mess wasn't your fault.

Determining fault in a car accident can be a real challenge. What may seem cut-and-dried to you may not seem the same to the insurance company. If it comes down to "he said, she said, they said," what happens then?

You may be looking at a 50/50 determination of fault, and guess what? That means what happened is at least half your fault.

What you can do: The best thing you can do to be proactive here is to drive carefully.

The bottom line is, even when something seems completely out of your control, your insurer expects you to be proactive about managing the risk.

By double-checking your payment details, addressing potential hazards to your home and reading every document before signing, you can make it harder for your insurer to decide you're too risky to keep around.

Want to learn more about insurance? Visit icgs.org.

Related Content

• Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert Explains
• 10 Mistakes People Make After They're in a Car Accident
• Making Fraudulent Insurance Claims Can Land You in Jail
• What Is Insurance Good For? Let Us Count the Ways
• Five Reasons You Might Hate Your Insurance Company (and Why You Shouldn't)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The holidays are a fun yet hectic time of the year. It isn't just a busy time for us: Insurance companies are also hustling to review and process claims.

Why? Holiday gatherings bring their share of increased risks. The National Fire Protection Association reported a nearly 400% increase in house fires during Thanksgiving. Add in inclement weather, guests visiting, porch pirates and other risks, and you have a busy season for insurance companies.

As such, taking some time to peril-proof your home can make your holidays safer and memorable, without needing to call your insurance company. Here are some common hazards to look out for, along with what your home insurance covers.

If an accident happens, what does my home insurance cover?

Before exploring the perils, let's begin with what a basic home insurance policy typically covers. If your home catches on fire due to an electrical or cooking issue, your home insurance usually covers the claim once you satisfy the deductible.

The same also applies to guests who incur injury on your premises. This is under the personal liability coverage and can protect you financially from any medical or legal bills incurred from the accident.

However, you'll want to investigate your policy to ensure you have enough liability coverage. The reason? Should a guest suffer an injury in your home and the court awards a judgment higher than what your policy pays out, you would be on the hook for the rest. If you're concerned about gaps in your policy, an umbrella insurance policy can help by providing additional liability coverage to cover those extra costs.

This time of year marks a smart time to reevaluate your insurance coverage and make sure you're not overpaying. Use this Bankrate tool to shop for and compare options quickly before we move on to perils:

Holiday light decoration safety tips

Lights are an integral part of the holidays. Whether you're setting out a few strands or going all out with them, ensure that your holiday lights have the Underwriters Laboratory (UL) seal, as that indicates the product has undergone rigorous testing.

If you have lights from last year you plan to use, check the cords for signs of fraying or loose connections, since these could pose fire or electric shock risks. Also, check your circuits before installation to ensure they can handle the power demand; for modern 15-amp circuits, it's 1,440 watts worth of lights, depending on bulb type.

Furthermore, where you place your lights is of paramount importance. Tie up loose wires to prevent tripping hazards if you have children who want to play in the yard or home. And if you're using a ladder to decorate, implement the buddy system, as it ensures the ladder is in the correct position and stable before installation.

As for candles, place them on a heat-resistant surface that's at least a foot from any fire hazards. As welcoming as the glow of candlelight can be in a window, only do so if the window treatments or blinds are up and away at a safe distance. And monitor lit candles at all times, as kids and pets could easily knock them off.

Christmas trees: Location and care matter

For Christmas trees, you'll want to set them up in a low-traffic area. This prevents guests from tripping on decorations or gifts, which could result in an injury and prompt a call to your insurance company (or, well, ruin a present you worked hard to get).

Plan to have a real tree in your home this holiday season? This Old House recommends spraying it with a mold-resistant sealant to prevent mold spores from triggering allergic reactions.

If you have pets, namely cats, keep the first few lower branches of your tree undecorated unless you want them to treat your decorations like piñatas. Once knocked off the tree, these decorations create tripping hazards — or worse, if they're made out of glass. Dog owners should regularly inspect around your tree and pick up any items before they end up in your friend's tummy, necessitating a very high vet bill.

Create a holiday meal your insurance company can't feast on

Cooking is an integral part of the holiday season for many households. I spent frenzied evenings making Christmas cookies or warming up a pie as the family jostled around the table discussing matters of world importance.

It might sound overly cautious, but cooking can represent an elevated risk around the holidays. Fires from deep-fried turkeys gone wrong, as well as scalding and lacerations, top the list of common holiday injuries.

Here are a few tips to keep you and your guests safe:

• Keep small children out of the cooking zones unless carefully supervised
• Make sure flammable objects such as oven mitts, alcohol and dish towels are away from flammable areas
• Clean the floor and inspect it regularly for any tripping hazards
• Never leave your kitchen unattended while food cooks
• Keep fire extinguishers on hand

Beware of slips, falls and pirates (not the cool kind)

When the weather becomes cold, it can transform your sidewalk and driveway into an unexpected skating rink for your guests. Before guests arrive, shovel any remaining snow and treat frozen areas with traction aids, like cat litter or sand.

Speaking of the front of your home, it becomes quite busy during the holiday season. Along with guests, chances are your Amazon Prime driver or Walmart+ delivery person becomes a frequent visitor.

As they do, they attract another crowd: Porch pirates. Porch pirates thrive at this time of year, looking for easy crimes of opportunity. If your packages are stolen, your home insurance policy will cover these items. However, depending on your deductible, it might not make sense to pay $500 to replace an item worth $100.

Therefore, you'll want to secure your packages. How? You can schedule your packages to arrive at an Amazon drop-off location, use a porch lock box, or, if you're buying from Amazon, opt for the Key In-Garage Delivery, which authorizes an Amazon driver to leave your packages in your garage.

The bottom line on preparing for holiday perils

The holidays are right around the corner. As such, preparing your home now should involve being mindful of common perils to protect you and your guests.

What's more, this time of the year is the perfect time to ensure you have the right financial protection. That way, if the unthinkable happens, you have peace of mind knowing your assets are protected.

Related content

• Reasons Your Home Insurance Costs Are Surging
• How to Safely Get Your Amazon Packages This Season
• Holiday Shipping Deadlines for 2025: When To Send Your Packages

Did you know that because of the government shutdown, FEMA's National Flood Insurance Program is not available to new customers or people who want to increase their coverage?

On March 15, Congress extended the flood insurance funding through September 30. As we are now well past that date, the program has been frozen. So what does this mean?

The National Flood Insurance Program (NFIP) covers between 4.7 million and 5 million properties across the United States. As of this writing, if you have a paid-in-full NFIP policy, then if you file a claim, you should have your claim covered.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

But if you're looking to buy a new policy — for example, because you bought a house — you're out of luck. If you're looking to increase your coverage, you're out of luck again. If your policy has lapsed and you want to get it back, you're still out of luck.

NFIP cannot write new policies, increase coverage or reinstate any existing policy. If your policy is coming up for renewal, you may be out of luck there, too, as NFIP isn't issuing renewals either.

Your home sale might not go through

As crazy as this sounds, the impact is far greater. Real estate sales are being heavily impacted since estimates suggest that about 1,300 home sales per day may be lost due to lenders requiring a home to have a flood insurance policy.

Remember, a flood insurance policy effectively helps to protect a bank's collateral, namely the property, in the event of flood damage. So if you think a bank will lend you money if it can't protect what it is lending for, you're sorely mistaken.

So what's a property owner to do?

If you haven't already shopped around for your flood insurance, then now is definitely the time. The federal government is not the only one offering flood insurance.

Flood insurance is offered by many privately owned insurance companies. The prices can be dramatically different than what the NFIP offers, either better or worse.

Coverage will differ as well, since a private insurance company can offer more choices than the federally mandated policy does.

You might want to check your homeowners policy

It is also worth mentioning that flood insurance covers very different loss types than your homeowners, condo owners or renters policy does. While many of those policies will cover water damage, they will not cover flood damage.

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To be more precise, damage to a home caused by flooding is typically specifically excluded from a homeowners policy. You are reading that correctly — flood damage is not the same as water damage, and flood damage is excluded from most homeowners policies.

That means, among other things, a homeowner whose home has rising water damage will need a flood insurance policy in place to cover any damage.

Additionally, you may say to yourself, "Self, you don't need a flood insurance policy because it doesn't flood here."

If this sounds like you, check your homeowners insurance policy language, and you may likely find a cornucopia of detailed explanations for what is and what isn't considered flood damage.

You may be surprised to find that if the water isn't coming in from the roof or a broken pipe, for the most part, you may need a flood insurance policy to have the protection you think you already have.

What you can do

Contact a local insurance broker and ask them to see how much a flood insurance policy costs compared to a private insurance company.

Want to learn more about insurance? Visit icgs.org.

Related Content

• I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)
• Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get It
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• Are You Tempted to Drop Your Homeowners Insurance?
• What Is Insurance Good For? Let Us Count the Ways

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Your insurance deductible is the portion of any covered repairs that you agree to pay. If your deductible is $500 and a hurricane rips a hole in your roof that costs $5,000 to repair, you'd pay $500, and insurance would pay $4,500. Most home insurance deductibles range from $500 to $2,500, but can often be set much higher.

You might already know that raising your deductible is a quick way to lower your premium. Raising it from $500 to $1,000 can drop your rate by as much as 25%. Raising it even more than that could, likewise, lower your premium even more.

How high is too high? How low is too low?

The 1% deductible rule is meant to be a shorthand for finding the right balance. It might not make sense for every homeowner, but it's still a good starting point to find an amount that you're comfortable paying if you have to, yet is still high enough to keep your premiums under control.

What is the 1% deductible rule in home insurance?

On a standard home insurance policy, you'll usually see a couple of different deductibles. For example, you might have one that applies only to hurricane insurance claims and another that applies to all other claims. Sometimes these are already listed as a percentage (usually 1% or 2%, but sometimes as high as 10%).

Even when they're listed as a flat cash amount, some experts recommend setting your deductible to 1% of the construction cost of your home. That's not the market value of your home, but the actual cost to rebuild it from the ground up.

If you pull up your policy paperwork, the insurer will typically list its estimate of that cost as "replacement value" or "replacement cost."

If the replacement cost of your home is, say, $300,000, following the 1% deductible rule would mean setting your deductible at $3,000. If yours is currently set at, say, $1,000, following this rule could triple your deductible, which could potentially bring down your premium quite a bit.

To see how much of a difference it would make, use our comparison tool, powered by Bankrate, to see how much a policy would cost if you set the deductible to 1% of the replacement cost of your home:

Is the 1% deductible rule a practical option for you?

The purpose of this rule is to give homeowners an easy way to strike a balance between saving on premiums while still having enough coverage to protect them from a major loss. Does the rule still do that at a time when construction costs are soaring?

It depends on your budget. A higher deductible could dramatically lower your premium. The tradeoff is only worth it if you could comfortably cover the amount when disaster strikes. That means you probably don't want to set it higher than your emergency fund, and it should be an amount that you could replenish within a few months.

Depending on where you live, that comfortable amount might be less than 1% of the replacement cost of your home. If you can afford to raise your deductible even a bit closer to that 1% target, you still might see some savings.

Not using your insurance is another benefit of the 1% rule

One of the most annoying things about insurance is that it feels like a service you have to pay for, but you'll get punished for actually using it. That's because in many states, filing a claim can cause your home insurance costs to surge as you now have a claim history.

Your goal as a homeowner is to avoid filing claims for smaller issues where the payout wouldn't be worth the price hike. Bumping that deductible to 1% of your home's replacement cost can result in immediate savings now and add further incentive to avoid filing claims for those smaller repairs.

While it's not fun to pay for something you have to avoid using, following this rule at least allows you to pay a little less while still having that peace of mind that you're covered for those more expensive damages.

Related content

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Having the right home security equipment can provide peace of mind. And, with some items, like smart locks, it adds convenience to your everyday life. It's why I like them. If I leave home and don't remember if I locked the front door, I don't have to drive back to check. I can open the lock's app and do it remotely.

I also like them because you can assign temporary codes for occasional visitors. This ensures that I don't have to make duplicate keys (which could become lost, most likely by me) and end up in the hands of someone I don't want.

As with any security equipment, vulnerabilities can arise. So, I'm going to show you some ways to protect your home from keyless break-ins.

Find the right smart lock for your home

If you already have a smart lock, we’ll get to a few tips below to help keep it secure. But if you’re shopping for one, it’s worth choosing a model that fits your door and works well with your smart home setup.

Some locks are built for Apple HomeKit, while others pair best with Google Home or Alexa. Look for models with strong app integration, reliable remote access and easy installation, especially if you want to control everything from your phone or smartwatch.

Here are a few lock options based on expert insights from Tom’s Guide.

Make your home less attractive to thieves

First, it's important to understand that smart locks have some software vulnerabilities. However, a thief would need technical know-how to exploit these weaknesses. Most home burglaries are crimes of opportunity committed by amateurs.

So, if someone tries to break into your home, it's probably because it looks easy to get in and you have items that can be quickly stolen. While smart locks are a good step toward keeping your door secure, you should also implement other security measures.

Installing security cameras around entry points signals to thieves that someone is watching. Automatic lights are also essential, especially during this time of year when daylight is limited, so they can't hide in the shadows.

Doing these things could qualify you for a discount on your home insurance policy. Contact your provider to see which equipment, if any, qualifies.

If you're shopping for lower rates, use the tool below, powered by Bankrate, to find a new policy fast:

Secure your digital life

Generally, we're not great at passwords. We set ones we'll remember since life throws so much at us, then use them for everything.

However, if a thief knows you pretty well, they can accurately guess your password or use hacking techniques to find it. Once they're into your Wi-Fi network, it makes it easier for them to access any devices you have connected to it, such as your smart lock. From there, they can unlock and lock your door with ease, which is not optimal.

This is why it's important to pay attention to software updates on your router, cell phone and any other device connected to your home's network. Before installing your smart lock, check for updates since it might not have the latest software updates. On top of this, use strong, unique passwords for all things digital that are difficult to crack.

This is why I like password managers. They create strong, random passwords and store them for you, so you don't have to remember them all.

A few other tips to keep you protected include:

• Disable temporary door codes once you no longer use them; this prevents someone from continuing to have access when they no longer need it
• Use multi-factor authentication, particularly biometrics
• Have a separate connection for your home's security equipment apart from your personal devices
• Use Z-Wave devices as they connect through a mesh network, not Wi-Fi

Ultimately, thieves are opportunists, looking for an easy score. As such, you likely won't have to worry about your average criminal trying to hack your smart lock.

That said, there are some smooth criminals out there with digital skills. Using these tips and installing the right security equipment can make it less desirable for thieves of all skill levels, keeping you safe and protecting your most valuable assets.

Related content

• A Nasty Surprise Awaits Snowbirds: Thousands in Unexpected Bills
• 5 DIY Home Security Upgrades That Can Lower Your Insurance Premium
• Your Online Security: 10 Things You Should Know

Today we're talking earthquake preparedness.

Before you click next because you think you don't live in an area prone to earthquakes, let me just point out that, according to the USGS, states including California, Nevada, Alaska, Utah, New Jersey, Texas, Oklahoma, Washington, Tennessee and Idaho have had an earthquake of 3.0 or higher on the Richter scale in the past five years. So keep that in mind.

One other thing to keep in mind: Areas prone to earthquakes have building codes that take that into consideration, so you have some basic protection in the event of seismic activity. Areas that are not prone to earthquakes do not, so it is on you and only you to prepare as best you can.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

I'm going to break earthquake preparedness into three important parts:

• Before an earthquake
• During an earthquake
• After an earthquake

What to do before an earthquake happens

Make a plan for what you will do if/when an earthquake strikes. You can get great ideas and step-by-step lists of what you need to do to prepare at Ready.gov.

You should consider everything from how you will receive an alert about an earthquake to what your shelter and evacuation plans are to your communication plan and more.

Have an emergency supply kit ready to go. Ready.gov offers help on that, too.

Think about what it means to drop, cover and hold on, which is what you'll want to do during an earthquake.

What to do during an earthquake

If you are inside, stay there. As mentioned before, you need to protect yourself — drop, cover and hold on — because a lot of stuff will go flying, literally. Get under a heavy desk or table and stay clear of windows and other breakables.

If you are in bed, turn facedown and cover your head with a pillow, at a minimum.

If you are driving, pull over if it is safe to do so and put the car in park.

If you are outside, move away from buildings, large panes of glass and power lines.

What to do after an earthquake

Take a moment to catch your breath.

Be prepared for more shaking, since earthquakes are followed by smaller earthquakes called aftershocks.

If you think it is safe, exit a damaged building. Be on the lookout to avoid broken glass and other debris.

If you are trapped, immediately try texting someone on your phone — cell phone lines will quickly get jammed, so the sooner you do this, the better. Then shout for help and bang on a wall.

If you are near a large body of water, think about getting to higher ground quickly in case of a tsunami.

If you've been through an earthquake before, you know how scary they truly are. They come out of the blue. They are loud, shocking and truly will catch you off guard.

The best thing you can do to prepare is to make a plan so you're not fumbling around in the aftermath, wondering what to do.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Check with your local emergency alert organizations to find out what your options are for receiving alerts.

While it's not possible at this time to get a lot of notice, even a few seconds can be enough to stop you from getting on an elevator or getting off a bridge.

About earthquake insurance

You can buy insurance coverage to protect your stuff in the event of an earthquake. Cost varies greatly; don't listen to what you hear on the street.

The price for your location could be a fraction of what your buddy says he is paying. The less frequent earthquakes are where you are, the lower the cost will be.

If you live near a fault line, you're obviously going to pay more.

You can't stop an earthquake, but being prepared and educated about what to do when one strikes can help you cope more efficiently if the time comes.

Want to learn more about insurance? Visit KarlSusman.com.

Related Content

• Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and Fires
• How to Balance Your Insurance Expectations vs the Reality
• How to Prepare For a Hurricane and Other Natural Disasters
• How to Protect Your Home from Natural Disasters with the Right Insurance
• 14 Must-Have Items for Your Home Emergency Kit

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you think your insurance premiums are too high today, I have some bad news for you. They are going to get higher. And not by a little — by a lot.

There is an entirely logical and reasonable reason for this, and after reading this article, you will understand and — dare I say — agree it has to happen.

At their core, insurance policies work because some people have claims, and some people do not. The insurance companies make money on the policies that do not have claims.

That is an incredible oversimplification, but you see where we start from here. For insurance policies to work, an insurer has to collect more in premiums than it pays out in claims. In general, that's the entire ballgame.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Without sounding old, in the past we have seen a relatively — and that is Relatively with a capital R — steady pace for weather-related claims. That means that, with some level of accuracy, we used to have the ability to predict claims that were caused by Mother Nature. It was possible to have an idea of what was going to happen.

How things have changed

Prices that insurers charged, in part, had these predictions worked into them so that there was enough money to be there to pay for the expected claims.

But two things have changed:

• The level of predictability has dropped. Weather events are happening a lot more often than predicted.
• Weather events today are costing upwards of 400% of what they used to cost.

Don't take my word for it. Let me show you some numbers:

• In 1992, there was one major event. Hurricane Andrew cost about $60 billion.
• In 2005, there was one major event. Hurricane Katrina cost about $201 billion.

That's two major events spread out over several years. But look at these stats for catastrophic events:

• 2017 (three in one year): Hurricane Irma ($64 billion), Hurricane Harvey ($160 billion), Hurricane Maria ($115 billion)
• 2021: Hurricane Ida ($84 billion)
• 2022: Hurricane Ian ($111 billion)
• 2024: Hurricane Helene ($78 billion)
• 2025: California wildfires ($275 billion)

What you can see is a clear trend — more claims, more often, and larger payouts.

You might be saying, "Wait just a minute. I don't live in a hurricane or wildfire area. Why are my premiums soaring?" Let's address that.

For one thing, wildfires aren't happening just in California anymore. Check this out:

• 2023: Maui wildfire ($5.5 billion)
• 2024: Smokehouse Creek Fire in Texas and Oklahoma ($1 billion)
• 2025: Dragon Bravo Fire in Arizona ($124 million)

This is all unprecedented

Wildfires are everywhere. Even in Colorado, record wildfires have led to the creation of a state-backed Colorado FAIR Plan, which is an insurer of last resort for homes in wildfire-prone areas. Colorado!

And we've had these storms:

• 2021: Winter freeze in Texas ($195 billion)
• 2022: North American storm complex ($2.2 billion)
• 2022 Midwest derecho ($1.3 billion)
• 2025: Tornado and severe storm outbreak ($10 billion)

And severe weather continues to happen.

Let me state for the record again that this is not the way things used to be. This is not what has been considered normal, standard or predictable. This is unprecedented in both the damage caused, lives lost and disrupted and high insurance claim payouts. It's the trifecta of bad, bad, bad.

So you can see clearly, in black and white, that weather events across this entire country are increasing, slamming us all.

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The insurance companies we pay our premiums to are also seeing this. They are, if you can personify an insurance company, scared to the bone.

When insurers have consistent and frequent claims of this magnitude, there is only one significant way to ensure that they have sufficient money to pay their customers' claims, and that is to increase the premiums they charge.

What you can do

What can we as consumers do about it? In a word: prepare.

Prepare by taking as many mitigation actions as you can. Regardless of the type of event, an ounce of prevention can, and will, go a long way.

Prepare by planning for your insurance premiums to increase.

Prepare by educating yourself on different types of insurance coverage — and be sure you have what you need, nothing more and nothing less.

Prepare by shopping for a competitive insurance product that is not cheap — since cheap is cheap — but is competitive and does what you expect it to do.

Remember, if you think having insurance is expensive, see what it costs to have a loss without it.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Homeowners are often advised to try to pay off their mortgages ahead of retirement. That way, they'll have one less expense to contend with once they move over to a fixed income.

But while shedding a mortgage payment could free up room in your budget as a retiree, that doesn't mean you won't have other homeowner expenses to deal with, like property taxes, maintenance and insurance.

The problem is that even with a paid-off home, your costs of ownership could rise in retirement, causing financial stress and making it difficult to keep up. It's important to understand the costs of continuing to own a house — and to take steps to protect yourself financially when possible.

Don't assume you can't fight your property taxes

In August, the Federal Housing House Price Index measured a 2.9% increase in U.S. home values on a year-over-year basis. When home values rise, property tax bills tend to follow suit, which can be a huge problem for retirees on a budget.

That's why Colton Pace, co-founder and CEO at Ownwell, a property tax appeal service, says older homeowners need to be informed about property tax relief programs.

"In most states, seniors 60 or 65 and older can lower their property taxes through homestead exemptions and property tax freeze programs," he says.

"For example, in Texas, homeowners can combine a general homestead exemption with a senior exemption and a tax ceiling that freezes school district taxes once they reach 65," Pace continues. "Florida, another popular state for seniors and retirees, offers a similar setup."

If you're older, it pays to check with your state's Department of Revenue or Division of Taxation to see what programs you might qualify for. Your local tax assessor may also have that information.

And remember, even if you don't qualify for a property tax freeze, you can always appeal your property taxes on the basis that your home assessment is too high.

Pace also points out that recent changes to the SALT (state and local tax) deduction could spell relief for some homeowners in high-tax states.

"Under the One Big Beautiful Bill Act, the SALT deduction cap was temporarily raised through 2029 to $40,000," Pace explains. The previous limit was $10,000.

However, he warns, "You can only deduct property taxes if you itemize deductions on your federal tax return." There are also income limits associated with this new rule, though they're quite high.

Homeowners in states that include Connecticut, New York, New Jersey, Massachusetts and California may benefit the most from this change, according to the Bipartisan Policy Center.

Keep shopping for homeowners insurance

Homeowners insurance can be a huge expense for older homeowners – especially when home insurance costs keep going up. Bankrate reports that the average U.S. homeowners policy costs $2,408 per year for a $300,000 dwelling limit.

If you live in a state where homeowners insurance costs keep rising (like Florida, where natural disasters are all too common), or if your personal costs keep going up for some reason, it's important to shop around for a policy every year. You may be eligible for a discount based on your age or other factors.

Budget carefully for maintenance

Although property tax and insurance costs can rise from year to year, on a 12-month basis, they're usually locked in, making it easier to budget as a retiree. It's maintenance and repairs that often push older homeowners to their breaking point.

State Farm says a good rule of thumb is to set aside 1% to 4% of your home's value for maintenance each year. But as your home value rises, that requires you to continuously increase your budget.

That, however, may not be a bad thing, since homes tend to need more work as they get older. And if your home is older already, you may need to start with the upper end of that 1% to 4% range.

If you want to make sure you'll be able to afford to stay in your home long-term, you may want to create an emergency fund for home repairs and maintenance specifically. Generally speaking, it's a good idea for retirees to hold enough cash to cover one to two years of bills in case there's a market event that sends portfolio values plummeting. Having dedicated funds for home-related costs takes some of the pressure off.

As Pace says, "All homes require upkeep, ranging from affordable fixes like deep cleaning to more expensive jobs like roof or foundation repairs. Ignoring urgent needs can lead to hazards and bigger bills down the road."

Pace says you may also want to be careful when making home upgrades – something you may be inclined to do as a retiree if you'll be spending more time at home.

"Adding a room or installing a pool will likely increase your home's assessed value and raise your property taxes, which can further deplete your retirement savings," he explains.

It's a matter of priorities

As a retiree who owns a home, it's best to expect that your costs will rise continuously from year to year. There are steps you can take to mitigate that, like looking into property tax programs, shopping for homeowners insurance annually, and having separate funds for maintenance and repairs.

But at the end of the day, if your home-related expenses are eating too heavily into your budget, there may come a point when downsizing makes sense.

Ultimately, you'll need to ask yourself what takes priority – flexibility in your budget, or staying put. There's no right or wrong answer, but it pays to consider a move if the stress of keeping up with your home outweighs the benefits of living in it.

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Time was when Chris and Kathy Perry, both 63, dreamed of retiring somewhere coastal. Maybe they’d relocate to Cape Cod, where they’d enjoyed many a family vacation. Or Maine, where their sons now live. “Being near water has always been important to us,” says Kathy Perry, a teacher in Katonah, N.Y. “We love kayaking, taking long beach walks.”

As their retirement has drawn closer, though, another concern has come into play: The rise of extreme weather events across the U.S. “Climate has become an extra cloud looming over our plans,” says Kathy.

Being able to afford the coastal home of their dreams, with the requisite insurance coverage, is one question. But what if their new home was hit by a catastrophic storm? What if they were unable to use vital medical equipment or access medication they might need in the future? “The idea of putting our assets into a property that could then be destroyed by a flood — that would put a serious dent in our retirement,” says Chris. “And the health risks we’d face being older are also scary.”

Climate has always played a role in retirees’ plans, but typically in happier ways. It used to be that retirees could envision a certain quality of life in the warmth of the desert, deep in the woods or on the banks of a river.

The word climate has taken on a darker tinge. People may debate the science of global warming, but there’s no disputing that the number and severity of natural disasters continues to rise. Even locations that weren’t subject to hurricanes, floods, fires or extreme heat have become host to catastrophic events. And putting aside the dangers everyone is facing, studies now show that older adults are more at risk from these events than previously understood.

“Recent research has found that older adults are more vulnerable and experience more casualties after natural disasters compared to other age groups,” says Jennifer Pipa, vice president of disaster programs for the American Red Cross. Because older people tend to suffer cognitive and physical declines, as well as other chronic conditions, the need to help them prepare is even more critical, she notes.

The challenge for today’s retirees — and those headed toward retirement — is how to revisit certain assumptions and fortify long-term plans. While it’s impossible to predict where the next “thousand-year storm” will strike, understanding the relevant risk factors is essential, no matter where you live.

A new focus on resilience

Look no further than less than a year ago, when hurricanes Helene (in September) and Milton (October) plowed through the Southeast. The damage in Asheville, N.C., alone was devastating, partly because no one saw it coming to a place that was thought safe from extreme weather events. Record rainfall triggered flooding, mudslides and infrastructure damage on an epic scale — an estimated $60 billion and counting — and all in an area long cherished as an ideal destination for retirees.

“It’s definitely a paradox that Asheville has been marketed as a climate haven for so many years,” says Grace Barron-Martinez, a real estate agent with the Town and Mountain agency there. “People have flocked here to retire, believing it was safe. But as we’re seeing now, there isn’t any place that’s truly safe from these impacts.”

One way scientists are measuring the scale of these calamities is by the amount of damage they cause. Hence, the phrase “billion-dollar disaster” has entered the nomenclature. From 2020 to 2024, the U.S. suffered 23 billion-dollar disasters per year, on average, according to the NOAA National Centers for Environmental Information. There were 27 such events with losses over $1 billion in 2024 alone.

Compare that to the 1980s, when there were only about three events per year that exceeded $1 billion in damage, adjusted for inflation.

“If you look at a storm like Hurricane Helene and the utter devastation it caused, it's clear that our society isn't well adapted to the climate we currently have,” says Kristina Dahl, vice president for science at Climate Central, a scientific research organization that describes itself as a “policy-neutral nonprofit.” “I think there's a lot that we can do to improve the resilience of our communities given the types of extreme weather we’re seeing now.”

Physical vulnerabilities of being older

For retirees, preparing to recover from or avoid disasters should include more than housing and geographic considerations. One key factor is the scale of the over-65 population: In 2022, there were some 58 million people over age 65. That’s projected to grow to more than 78 million 15 years from now.

That is adding to the population density in retirement-friendly areas. And because many of those regions are more susceptible to natural disasters, this puts many older people directly in harm’s way.

Because they’re more likely to have mobility issues, chronic health conditions and to take medications, older people suffer more when disaster hits. Aging bodies also are more affected by dangerous weather. In extreme heat, for example, people over 60 are generally less able to regulate their own body temperature by sweating, which strains the cardiovascular system. Consequently, studies show, more than 80% of heat-related fatalities involve people over age 60.

During a fatal storm or other extreme conditions, risk factors for older adults can multiply. The inability to charge hearing aids can mean missing important alerts. Needing a walker or CPAP machine can hinder someone’s escape. In the Lahaina, Hawaii, wildfires of 2023, two-thirds of the fatalities were 60 and older. During the January wildfires in Los Angeles, all but two of the 30 people who died were over 60 or disabled; the average age was 77. Earlier this summer, a 10-day heatwave in Europe caused an estimated 2,300 deaths, with more than 80% estimated to be among those 65 and older.

Retirees moving to high-risk locations

Unfortunately, a corresponding factor has emerged that’s equally dire for retirees. Fires, floods, tornadoes and periods of extreme heat are not only happening more frequently — they tend to occur (and recur) in the regions where many older Americans live. The majority of counties in the state of Florida, for example, are considered very high or relatively high risk according to FEMA. And Florida’s population includes more than 4.7 million people over age 65.

Worse, despite the increase in natural disasters, signs are that retirees are not taking heed. Call it a triumph of hope over experience, or denial — some at-risk regions are seeing more retirees moving in, not out. For example, five states that are high-risk regions — Florida, Arizona, South Carolina, Texas and North Carolina — also saw the biggest net gain of people over 60 in 2023.

This data dovetails with what realtor Grace Barron-Martinez is seeing in Asheville. Despite the billions worth of damage wrought by last year’s hurricane, “Demand is still pretty strong,” she says. “What I’m seeing more is people paying closer attention to properties themselves. Like, the position of trees, drainage issues or how close the house is to a pond or a creek.”

Rather than viewing Asheville as risky, she says, retirees seem to be taking what happened in 2024 as a fluke, unlikely to recur soon. Or perhaps they’re willing to take on some risks in the name of a better quality of life.

“One of the first clients I met with after the hurricane was a couple looking to relocate from New Orleans,” Barron-Martinez says. “But they’d survived Katrina, so they weren’t particularly fazed.”

Why retirees may be more vulnerable

On top of these physical risk factors, there can be financial repercussions for living in a more vulnerable region. David Flegal, a financial adviser in Cleveland, notes that the cost-benefit analysis of moving into a desirable retirement area — often someplace warmer or coastal — is more complicated now. The demand for homes in these areas, particularly in today’s tight market, is driving up prices — and insurance rates have spiked in some areas as a result.

An analysis by the National Bureau of Economic Research found that homeowners’ insurance premiums rose by 30% from 2020 to 2023 (that’s 13% adjusted for inflation). “This growth is associated with a stronger relationship between premiums and local disaster risk,” the report says. Meanwhile, many insurance companies across the country have stopped renewing policies on homes they deem too risky. A 2024 investigation by the Senate Budget Committee found that the number of non-renewals tripled in some 200 counties.

Flegal has a client who bought a home in Tampa for about $600,000 some years ago. It’s now worth nearly $1.5 million, and the cost of fully insuring the home is now prohibitive. Moving would be painful. “They like where they live, and it feels like home,” Flegal says.

They’d also take a financial hit. Even with the additional cash from the sale of their current property, finding another home could be challenging. Then there’s the tax on the gain from the sale: a likely 15% in long-term capital gains. Flegal notes that the capital gains exclusion for married couples on the sale of a primary residence is $500,000. In this case, even the $500,000 exclusion could leave his client with a $400,000 taxable gain.

The bottom line? “For now, he’s now living in a partially insured home on the Gulf Coast,” Flegal says.

A walk on the financial side

Practically speaking, is it worth factoring in climate- or weather-related risks as part of your retirement? After all, every retiree faces plenty of potential hiccups in the road ahead. Risks include prolonged or chronic illness, losing a spouse through death or divorce, an adult child or grandchild needing financial assistance, and outliving your assets. Not everything can be a line item in the budget.

Jen Mulder, the founder of Pathway Financial Services in Los Angeles, maintains that climate risks need to be part of a long-term financial plan. Thanks to the wildfires that ravaged Southern California last January, clients are more receptive to that conversation. “The wildfires were a wakeup call for a lot of people,” she says.

Still, Mulder says some clients are surprised when she tries to connect the dots to the financial side of their plan. “People don’t realize that certain factors could change — like taxes or inflation — because of these events. Businesses themselves may have more costs, or even liability issues that could impact returns.”

The resilient retiree

Lisa Hillegas, 62, is among those who want to cultivate resilience. In that sense, she’s emblematic of the next generation of retirees who are well aware of the increase in natural disasters and are factoring in those risks.

A lawyer in Ukiah, Calif., Hillegas and her husband moved into the house they hoped would be their forever home in late 2019, just before the pandemic. “We knew there was a fire danger up here,” she says, but they weren’t prepared to be affected by fires hundreds of miles away from their home just two hours north of San Francisco. The record-breaking wildfires in 2020 and 2021 burned millions of acres, generating so much smoke it made life unbearable. Going outside was impossible, and indoors wasn’t much better, Hillegas recalls. “We had air filters in every room. My husband was walking around with one of those filtration masks inside the house. It went on for weeks.”

Not only were all their outdoor activities off limits, Hillegas became deeply worried about the health risks of inhaling toxic pollutants. From her days practicing environmental law, Hillegas was sensitive to the risks of being exposed to chemicals. “With a wildfire, you just don’t know what’s burning — it’s not just trees, it’s appliances, cars, furniture. You're inhaling particles as well as smoke, and we don’t really know what the long-term health impacts are.”

Hillegas and her husband have reluctantly decided to leave California, and they’re now weighing a number of personal, health, climate and financial issues. They’ve considered Maine and Rhode Island — where they have friends or family — but that would put them on the opposite coast from their kids and her husband’s parents.

Making these choices — weighing the cost of living as well as quality of life — has never been an easy calculus. But the threat of natural disasters adds a new layer of complexity. “I consider myself a pragmatist,” Hillegas says. “I want to give myself the best shot at a long and satisfying retirement with my husband. Living in a place where we can’t breathe the air safely for weeks at a time is not the environment I want to grow old in.”

“Now we’re in the process of exploring Portland, Ore.,” she says. “It feels more palatable, because we’re still on the West Coast, and it’s a good city for aging in place.” But, she’s quick to point out, Portland has suffered episodes of extreme heat, as well as wildfires in 2020, albeit far less severe than in California. “All we can do is control what we can. There’s nowhere that’s 100% safe.”

Can you disaster-proof your financial plan?

Gaming out scenarios to come up with different portfolio projections is standard practice in the field of financial planning. Jen Mulder of Pathway Financial Services in Los Angeles has a few additions to that process that she uses to help clients consider the possible impact of different climate- and weather-related events.

Rethink the numbers. If the number of “billion-dollar disasters” continues at its current pace, governments and large companies could be contending with higher costs and bigger outlays. It’s worth running projections that factor in potentially lower returns as well as higher rates of inflation, Mulder says. “Depending on the outcomes, you may want to save more or think about working longer. The point is to give yourself options.”

Consider a Roth conversion. Could tax rates increase, given the burden on the government to help states recover from storms and other events? It’s hard to predict, “but if you believe you could be paying higher taxes down the road, it might be worth doing a Roth conversion on some of your tax-deferred assets now,” Mulder says.

Obviously, doing a rollover from a tax-deferred account like an IRA or 401(k) into a Roth account means you’ll owe tax on that amount at your current rate. But because there are no restrictions on the number of Roth conversions you can do (and no income cap when using this strategy, either), you could roll over a series of smaller amounts over a few years, pay less in tax — and enjoy tax-free withdrawals (once you’ve had the assets in the account for at least five years).

Invest in social capital. Given how vulnerable older people are in any kind of crisis, but especially in a deadly storm or fast-moving wildfire, knowing your neighbors could provide a critical lifeline, Mulder says. While this is true for many retirees, those who relocate need to be proactive about nurturing their social networks: “Let friends and neighbors know if you have hearing issues and might not hear an alarm or warning, or if you have mobility issues and need help getting out of your house.”

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Natural disasters in the 12 months that ended in mid-January represented the costliest stretch of extreme weather in the U.S. in 90 years, according to AccuWeather.

In a span of less than four months, three major weather events hit both sides of the country.

Hurricane Helene, which made landfall on September 26, 2024, was the deadliest hurricane to hit the U.S. mainland since Hurricane Katrina, causing $78.7 billion in damage, primarily in Florida, Georgia and the mountains of North Carolina — far from the usual path hurricanes take.

Hurricane Milton reached land two weeks later, causing $34.3 billion in damage, according to the National Oceanic and Atmospheric Administration.

And three months after that, wildfires spread through the Los Angeles area, causing as much as $131 billion in losses, according to a forecast from UCLA Anderson.

Here, four families whose homes were severely damaged or destroyed by those disasters share their experiences, including the decisions they made as fires or storms approached, how they handled their insurance claims, and their advice to help others prepare for disasters.

Devastated by wildfires

Rob Seltzer, a certified public accountant in Los Angeles, started the day on January 7, 2025, by getting a haircut and driving to his office. Wildfires had been growing in the distance, and at 11:30 a.m., his wife, Linda, called to let him know their son’s middle school had closed because of the wind. Rob immediately drove home to meet his family and discovered that the fire was heading toward their neighborhood of Sunset Mesa, near the border of Palisades and Malibu.

“We had maybe 10 to 15 minutes to grab stuff and get out of there,” he says. “My wife grabbed clothes for all of us, some jewelry and a few other things, but not a lot. I grabbed my two guitars, my camera, my laptop and a few client files. I had my dad’s watch and grandfather’s watches, three bottles of Dom Perignon and a bottle of 1942 Don Julio [tequila].”

The Seltzers could see the fire over the ridge from their home, a 2,000-square-foot ranch house built in 1971. The house was special because of its location. “We’d look out at the ocean and see Catalina every day. On the front side, you could look at the Santa Monica Mountains,” Rob says. “We’ve seen fires from our house before, so I wasn’t panicked. I thought we’d be back the next day.”

They had three cars and two drivers, so Rob evacuated in the old Jeep he’s owned since he was 20 years old — he’s now 62 — and Linda took the SUV. They left their Tesla at the house and drove away to stay with friends.

Rob and his neighbors tried to monitor their homes from their Ring security cameras. A few hours later, the neighbor who lived to the Seltzers’ right called to say the hedge between their driveways was on fire. Then the neighbor on the other side said the fence between their houses was on fire. The Seltzers’ Ring camera went out at 4 p.m. They weren’t allowed back in the neighborhood, but Rob figured that his house must have been destroyed.

The next morning, they learned that only one house remained standing among the 42 homes on their street. Rob called his insurance company that morning. His broker called back within 15 minutes, and an adjuster called within 1-½ hours. The insurer advanced the family $10,000 to pay for temporary housing and food.

The Seltzers stayed with friends for the first few days and went to a pop-up disaster center in Los Angeles, where representatives from government agencies and dozens of insurance companies helped fire victims start to get their lives back in order. The family replaced their passports, Social Security cards, marriage license, and birth certificates.

Ten days after the fire, they were finally allowed back into the neighborhood. Outfitted in hazmat suits, the Seltzers and their neighbors dug through the rubble with firefighters. They found little pieces of their lives. Some handmade silver that Rob’s mom had received as a wedding gift in the 1950s had all melted together. Their 13-year-old son, Mario, who is a second-degree black belt in karate, found some of his karate weapons, which had been tarnished from the fire. Linda saw her coffee mug, “but there was stuff melted on it.”

More than 5,000 homes in their area were destroyed, and finding a place to live was difficult and expensive, especially because they wanted to stay near Malibu Middle School for Mario. They were one of 60 candidates for the first apartment they applied for. With help from a friend who owns a property management company, they ended up renting a two-bedroom condo.

Navigating the insurance claim
For loss-of-use coverage (also known as coverage for additional living expenses), which helps pay for rent or a hotel while you’re out of your home, the insurance company gave the Seltzers four months of rent up front. It will continue to pay until they reach the $75,000 limit, which will likely happen long before they’ll be able to move back home. “It’ll probably be three or more years,” Rob says.

The Seltzers also received an initial check for their personal property coverage within a few weeks. They used the money to start buying new clothes and replacing items they lost. But the check amount is lower than their coverage limits, and they’ll need to provide documentation of the contents that were destroyed to get the additional payout.

Getting paid for the dwelling coverage — which covers the costs of rebuilding the house — took longer. Typically, for those who have a mortgage, the insurer writes the check to both the homeowner and the lender, and the lender releases the funds to the homeowner in installments as repairs progress. The Seltzers’ insurance company sent a check in February, but they didn’t get any of the money from their mortgage lender until mid April. “After multiple calls on a weekly basis to my lender, we finally received the amount of our insurance payment, less the amount we owed on our mortgage,” Rob says.

Rob believes the insurer should pay them more, however, because they had renovations completed on their kitchen and backyard, making the home more expensive to rebuild. So he’s challenging the adjuster’s valuation of their home. “I think that we will prevail. I have ledger printouts of every dime we spent and pictures of the remodel.” If that doesn’t work, he’ll ask a contractor he knows to provide detailed rebuilding cost estimates to give to the insurer.

“I can’t emphasize it enough: Be your own advocate, and don’t take no for an answer,” he says.

Damaged by floodwaters

Ryan Ford and his family were monitoring the path of Hurricane Helene on September 26, 2024, from their home in St. Petersburg, Fla. “We were very nervous because anytime a hurricane is out in the Gulf, we’re concerned about flooding in our area,” says Ryan, who lives in the Snell Isle neighborhood. The storm seemed to pass by their home at about 6 p.m. and stall out. “Nothing was really happening,” he says.

But the water arrived a few hours later. “Around 9 p.m., I started to notice water slowly creeping up the streets and up our driveway,” he says. “Around 9:45 p.m., it was at the top edge of our driveway. About 45 minutes later, that water was in our house.”

At first, the Fords tried to keep the water out, but it continued to rise over the next two hours, reaching a depth of about 3 feet outside the house and about 10 to 12 inches inside. “It reached a point where we kind of gave up trying to keep it out,” he says.

Ryan, his wife, Martha, their 16-year-old daughter, and their cat and dog huddled on a bed for several hours, trying to stay safe as the water continued to rise until about 4 a.m. Then, as low tide arrived, “we opened up the doors to our house, and the water rushed out,” he says. “Everybody stepped up with a broom or something trying to get water out.”

They continued to clean up the next day. “We started piling stuff up and throwing it away. It’s really like a blur,” Ryan says. “There was nothing to indicate that this hurricane was going on, other than the fact there was water in our house from the storm surge.” It was the first time water had come in their one-story house in the 15 years they had lived there.

Water damage was in every room, and they had to cut out up to 4 feet of drywall from the bottom of all of their walls. They wasted no time in contacting their insurance companies. “While we were in the bedroom with the water around us, we put in claims,” Ryan says.

Their homeowners insurance provider quickly determined that the damage was caused by flooding and denied the claim (homeowners insurance doesn’t cover flood damage). Fortunately, the Fords also had flood insurance, which they had purchased from a private company so they could have higher coverage limits than the National Flood Insurance Program offers (only up to $250,000 for dwelling and $100,000 for possessions).

The insurer sent out an adjuster within about a week, who determined the rebuilding cost. But getting coverage for their damaged furniture and other possessions was more complicated. They had to document the name of each damaged item and the room it was in. They also had to provide receipts or estimates of current replacement costs based on the retail prices of similar items they looked up online, as well as photographs of the items.

Their private flood policy had coverage for additional living expenses, which the NFIP doesn’t include, and the $10,000 they received helped pay for a rental house until they moved back into their home in February.

Contractors were hard to come by after the storm, but the Fords happened to be in the middle of a home renovation; their contractor had nearly finished adding a room on to the back of their house when the storm hit. He quickly shifted his focus to fixing the rest of the home.

They tapped their emergency fund to start rebuilding while waiting for the insurance money, which was fortunate because the claims process was lengthy, Ryan says. They received the claim payment in February and felt the amount was fair. But their private flood insurer canceled their coverage when their policy term ended in May, and now their only option is the NFIP. “No other private insurer was willing to come back into this area,” Ryan says.

Crushed by a tree

Brandi Gabbard’s home in the Barcley Estates neighborhood of St. Petersburg made it through Hurricane Helene without any damage. But two weeks later, on October 8, she and her husband evacuated as Hurricane Milton advanced, and a very large, old tree fell, crushing about one-third of their house. All three bedrooms and a bathroom were destroyed. “The City of St. Petersburg had about 18 inches of rain in the storm,” says Brandi, who is managing broker for Sun Coast Realty Solutions and a city council member representing the far northeast part of St. Petersburg.

The Gabbards returned home after the bridges to Pinellas County were reopened on October 10, and they took pictures of the damage and filed their insurance claim online. They also had plenty of pictures on hand of their home from before the storm. “When you live in Florida, you get very used to photographing your home. We took updated photos before we evacuated for Helene,” she says.

While waiting for the insurance company to process her claim, Brandi called around to get tree-removal quotes, which ranged from $8,000 to $30,000. She and her husband chose the lowest-cost option, had the tree removed, and put tarps on the crushed parts of their home to try to prevent further damage. They also visited an insurance village in a local recreation center, where representatives from many insurance companies were available to assist homeowners. They checked the status of the claim, made sure the insurer had everything it needed, and found out when the field adjuster was planning to inspect the damage. “Right then and there, they were able to give us a little bit of money to pay for some of our out-of-pocket expenses,” Brandi says. Because the home was damaged by the falling tree and rain that fell inside, rather than rising floodwaters, the homeowners policy provided coverage.

About two weeks after the adjuster’s visit, the Gabbards received his report with the payout estimate, which was close to estimates they’d been receiving from contractors, minus the deductible. “It was a bit of sticker shock, the reality of actually seeing the deductible in front of you in a time when you’re faced with tens of thousands of dollars of repairs,” says Brandi.

In Florida, windstorm deductibles on a homeowners insurance policy typically range from 2% to 5% of the dwelling coverage. The higher the deductible, the lower the premiums. But that means if you have a $1 million policy, for example, you’ll have to pay $20,000 to $50,000 out of your pocket before the insurance kicks in.

Finding a contractor was difficult after back-to-back hurricanes, but Brandi and her husband managed to secure permits and hire subcontractors, and they did as much of the work as they could themselves. By mid April, the repairs were about 80% finished.

Brandi recommends reviewing your insurance every few years to make sure you have enough coverage, no matter where you live. “It’s so important that people understand the risk that is associated with our climate changing,” she says. “Every place is vulnerable.”

Crumpled by a mudslide

Marilyn and Jonathan Clark both grew up in North Carolina and moved to Florida after college, settling in Santa Rosa Beach, near Panama City Beach. But they always wanted to buy property in North Carolina. “It was our dream to get a place in the mountains,” says Marilyn. In 2022, they bought a cabin in Fairview, N.C., about 10 miles away from Asheville, and fully renovated it in 2023. “It was an incredible property by a creek on the side of a mountain,” she says. They had been renting it out through Airbnb and visiting occasionally, and their goal was to eventually retire there.

The Clarks were at their home in Florida when Hurricane Helene was headed toward them. They evacuated to Alabama, says Marilyn, who loaded the kids and cats into their Airstream trailer. Meanwhile, their Airbnb guests had checked out of the North Carolina home on Wednesday, September 25, and the next guests weren’t due until Sunday.

The Clarks were relieved that their Florida home made it through the storm, but a neighbor in North Carolina called at about 9 a.m. on Friday and told them that the chimney from their cabin was in the creek. “The second story crashed into the first story, and the roof split in half when the chimney fell into the creek. The cement foundation moved 20 feet, and the whole house shifted. I never imagined anything like that. The landslide, mudslide and the amount of water — it’s still incomprehensible.”

The Clarks contacted their homeowners insurance company, but it took several tries for the adjuster to get to their property because the bridge over the creek to their home was washed out. Thanks to their experience living in Florida, the Clarks were ready to give the insurance company a detailed inventory and records of their renovation. But it didn’t help. Because they didn’t have flood, landslide or mudslide insurance, their claim was denied, she says.

The Federal Emergency Management Agency sent them $500 for food, but because the damage was to their second home rather than their primary home, the Clarks don’t qualify for most assistance programs. They submitted detailed paperwork for a North Carolina mitigation grant — a program that buys damaged properties, demolishes them and preserves the land as green space — and are waiting for the decision. “It was like writing a thesis,” Clark says. “If we get the mitigation grant, it will cover the house for the price it was the day before the storm. That was our dream house and where we wanted to retire,” she says.

The Clarks are hoping to deduct some of the losses on their tax return, and their records of the home improvements and inventory should help.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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There is no way to put a price tag or insure against the losses that people are suffering after the flooding in Texas. The damage to property can be calculated in dollars and cents, but the suffering and loss of life are incalculable.

We do need to have a discussion about the one part of this we have control over, though, namely what type of insurance policies are available to help us protect our physical assets from flood damage.

First and foremost, let's be sure we are all clear on the fact that no one who has a basic homeowners insurance policy has coverage for damage caused by flooding.

You also do not have coverage for flood damage on your condominium owners insurance policy or your renters insurance policy.

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As a matter of fact, practically all property insurance policies specifically exclude the peril of flood damage. Flood insurance is something you have to purchase separately. Which means you have to think about it separately and plan for it separately.

Here's one way to buy flood insurance

There are two places to acquire flood insurance: One is FEMA, and the other is from a private insurance company. Let's dig a little deeper so you can see precisely how to do this.

A flood insurance policy through FEMA comes from the National Flood Insurance Program (NFIP). You can start the process of purchasing it here, or you can get the same policy with the assistance of a licensed insurance agent or broker.

I feel it fair to point out that the cost is identical in purchasing this policy, whether you purchase from a broker or through FEMA. I believe you will get better service and council from a licensed agent or broker. However, your mileage may vary.

Another way to buy flood insurance

The other way of purchasing flood insurance is from a private insurance company. These policies are almost exclusively offered by licensed independent insurance agents or brokers. You may find a company out there that will sell you a policy directly.

However, once again, since there is likely no cost savings in doing so, it's better to let the person with the license guide you through the process to ensure you actually get the coverage you want.

The private flood insurance market is larger than you may think, assuming you've given it any thought. You may wonder why insurance companies specifically exclude damage by flood and then turn around and sell it anyway.

Simple answer: The insurance companies offering home insurance, condo insurance and property insurance generally do not have the proper underwriting and processes, nor clearly the desire, to deal in flood insurance.

However, the private companies that do offer flood insurance … Well, they tend to offer only flood insurance and are experts in the field. Some of these companies specialize in high-risk exposures such as floods, wildfires, earthquakes and the like. They know their stuff.

What's the difference?

What is the difference between an NFIP policy and one from a private insurer? Well, in a word, a lot. Maybe that counts as two words? Moving on.

The NFIP policy will provide up to $250,000 for the structure and $100,000 for the contents of your property. That's it. That may seem like a paltry amount of money if your home is swept away by floodwaters.

I feel it is safe to say that there are many homes that would need more than $250,000 to rebuild them from scratch, and if that's accurate, then the policy offered is clearly inadequate.

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Private insurance companies can offer any type of coverage they wish. That means you may be able to get coverage up to the full amount needed to rebuild your home. At least, you may be able to select an amount upfront that is significantly higher than $250,000.

In addition, private insurers may give you the chance to purchase more in personal property coverage than $100,000.

More coverage from the private market will mean more money, right? Well, get ready for the surprise. More often than not, a private insurance company is going to offer a flood insurance policy at a cost that is less than what FEMA's NFIP policy offers. Wait, did I just say you can get more coverage for less money? Why, yes, yes, I did.

Keep in mind that a third of all flood claims that NFIP pays out are not in what are considered to be high-risk flooding areas.

Bottom line: Flood insurance is out there and available to purchase. It can be as inexpensive as $100 per year — yes, I've seen it — but depending on the amount of coverage and your property's exposure, I would expect it to cost more.

Hindsight is 20/20, of course, so let's try to learn from what we just saw in Texas and give ourselves an insurance checkup. And if we live in an area that could flood but we don't have flood insurance, let's seriously consider fixing that.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Florida is once again investing heavily in protecting homes and wallets from hurricane damage. Thanks to a fresh $280 million funding boost in the 2025–2026 state budget, the My Safe Florida Home program is making a major comeback.

The program, which offers grants of up to $10,000 per household, helps eligible homeowners pay for such critical wind-mitigation upgrades as impact-resistant windows, fortified doors and roof reinforcements.

The initiative is designed to increase hurricane resilience and reduce the financial strain of storm recovery. These upgrades could also lower your homeowner’s insurance premium, which can be a much-needed relief in a state where coverage costs have continued to climb.

High demand prompts return of Florida’s hurricane upgrade initiative

The My Safe Florida Home program originally launched in the mid-2000s but was revived in 2022 following years of extreme weather and rising insurance costs.

By 2023, demand had overwhelmed supply. Thousands of applications were left unfunded when the program ran out of money, prompting lawmakers to step in this year with a significantly larger allocation.

That $280 million funding infusion aims to reach more Floridians this time around, giving residents a second chance to upgrade and protect their homes.

Eligibility requirements for My Safe Florida Home grants

The program is open to full-time Florida homeowners who live in single-family, site-built homes. To qualify, your home must meet certain requirements:

• It must be your primary residence.
• The insured value must not exceed the cap (currently $700,000).
• A wind mitigation inspection is required to identify needed upgrades.
• Priority is given to homeowners age 60 and older.

Once approved, eligible homeowners can receive up to $10,000 in matching grants, with the state covering $2 for every $1 the homeowner contributes.

Lower-income households might qualify for a full grant with no match required. Keep in mind that the grant money is provided after you’ve been approved and have the required wind-mitigation work done on your home.

Eligible home improvements under the grant program

Funds from the program can be used to install:

• Impact-resistant windows and exterior doors
• Upgraded garage doors
• Roof reinforcements or replacements
• Improved roof-to-wall connections

These improvements can significantly strengthen your home’s ability to withstand hurricane-force winds, potentially sparing you from catastrophic damage during storm season.

How home upgrades can lower your insurance costs

While hurricane mitigation is the primary goal, the financial incentive doesn’t end there. By making these upgrades, homeowners could become eligible for wind mitigation credits that lower their property insurance costs.

"Improving your home’s structure is one of the few strategies Florida homeowners can take to directly reduce insurance premiums,” said Florida Chief Financial Officer Jimmy Patronis in a recent press release. “The My Safe Florida Home program is a win-win.”

These savings can be especially valuable as Florida continues to see steep increases in home insurance premiums. Even modest discounts from wind-mitigation credits can help offset rising costs and make coverage more affordable in the long run.

How to apply

Funding is available on a first-come, first-served basis and if past cycles are any indication, interest will be high.

The program will prioritize senior citizens and low-income homeowners with several special application periods before opening to the general public:

• July 1–15: Low-income homeowners age 60 and older
• July 16–30: Low-income homeowners of any age
• July 31–Aug. 14: Moderate-income homeowners age 60 and older
• August 15–30: Moderate-income homeowners of any age
• August 31 and later: All other eligible Florida homeowners

To apply, visit MySafeFLHome.com and complete the eligibility form. From there, you’ll schedule a free wind mitigation inspection. Once you receive the inspection report, you can choose a contractor and submit your grant application.

If you're thinking of applying, start gathering your insurance and property documents now to avoid delays.

A timely opportunity for Florida homeowners

Florida’s renewed commitment to hurricane resilience is welcome news for many, especially as the state approaches peak storm season. With $280 million in funding on the table, those who qualify should take advantage of the opportunity to strengthen their homes and potentially lower their insurance costs.

Given the program’s popularity and limited funds, acting early could make all the difference. Don’t wait until the next storm warning; start preparing now.

Compare some of today's best home insurance offers with the tool below, powered by Bankrate:

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Congratulations, you've worked hard and are ready for a vacation. Some time away. Some R&R. Some phone-free time (though we know that never actually happens). Are any of your insurance policies — auto, homeowners, renters or health insurance — going along for the journey?

Here are three things to keep in mind about your insurance when you're traveling this summer in the U.S. (If you're leaving the country, check with your insurance agent or broker to find out if the level of coverage you have is sufficient or if you'd be better off with a supplemental insurance policy.)

The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

No. 1: Rental cars

If you're fortunate enough to be flying somewhere and renting a car, then you're sure to be hit up with a plethora of options at the rental car counter, the good old upsells.

The rental car you managed to find was $40 a day, but you're going to get everything from liability insurance to physical damage insurance, even mechanical breakdown and towing coverage. Heck, you can even prepay for gas so you can return the car on empty.

So to buy or not to buy — that is the question. Some options are a matter of personal choice. If you want to prepay for gas, why not? It's convenient.

When it comes to liability and physical damage to the car, it will depend on the personal auto insurance policy that you already have.

Most policies will extend the same coverage you already have to a temporary replacement vehicle. Liability insurance is typically even more portable, so chances are you can skip paying extra for that if you already have it on your existing insurance policy.

Now, these days, there may be some extremely basic policies out there that specifically exclude rentals, so before making any final decisions, either check your policy language, or save some time and ask your insurance agent or broker if your coverage will extend to a rental car.

No. 2: Your luggage, your stuff

So many things can happen to your luggage — you forgot it in your Uber, the airline lost it or sent it to Budapest or, heck, maybe a hotel employee moonlights as a thief.

If you have a property insurance policy — let's narrow it down to a homeowners insurance policy, condominium owners policy or renters policy for the sake of discussion — then chances are excellent you will have some coverage accompanying you on your journey, with a few caveats.

First, your entire amount of personal property coverage will not go with you. See, the insurer will figure you're not taking everything you own on your trip, so 100% of your coverage won't go either. Typically, 10% of your personal property amount will be covered while you are away.

So, if you have $100,000 in personal property coverage, then while you're on the beach in Hawaii, you will have about $10,000 in coverage. Check your policy or with your agent or broker — there are nuances in this area, too.

No. 3: Medical issues

We're only human, and let's face it, stuff happens. You can get the flu just as likely while away as you can at home. Arguably, you are more exposed to bacteria and viruses while traveling than you are when working from home.

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So, yeah, it's the pits, but you may get sick and need a doctor. Or, and I hate to even put this out in the universe, you could get injured.

While the view from the top of that cliff looked magnificent, the jump into what appeared to be deep water may not have been. Even needing a simple prescription medication brings your health insurance into play.

While there is a great deal of nuance here, depending on your health insurer and the type of plan you have, most of them will have provisions for emergencies.

It wouldn't be a bad idea to have a peek at that policy as well so that you know whether to pay out of pocket or go through the process of providing your insurance information to the pharmacy, only to be told it is not in your network.

Work hard, play hard. Vacations are meant to be enjoyed, not dreaded, but — and I'm not trying to be a Debbie Downer — the truth is, I can personally attest to things happening when you're away from home.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

While meteors aren’t exactly rare, one making landfall in the middle of a densely populated area is. But that’s exactly what happened yesterday afternoon in Blacksville, a town just south of Atlanta, Georgia.

Around noon local time, hundreds of reports of a fireball in the sky flooded into the American Meteor Society and the National Weather Service. The meteorite is estimated to have started as a roughly three-foot wide chunk of asteroid, barreling through the atmosphere at approximately 29,000 miles per hour before breaking apart about 27 miles above the earth, according to NASA.

But the rare event may have literally hit home for one resident of Henry County, just south of Atlanta. According to a National Weather Service Facebook post, the Henry County homeowner reported a rock piercing through their roof and cracking their floors as it landed inside their home at about the same time that reports were coming in about a fireball in the sky. While local officials are still investigating the situation and have yet to confirm whether the rock was a piece of the meteorite, radar imaging from NASA does suggest that debris from the meteorite fell in the area where the home is located.

There are more than a few surprising things home insurance won’t cover, so this news may have you wondering if you’d be able to file a claim with your insurance company if this were to happen to you. The good news is that it should be covered by a standard home insurance policy. But here’s what you need to know.

What are the odds of a meteorite crashing into your home?

According to NASA, Earth is pummeled by over 48 tons of meteoritic material every day. But nearly all of it vaporizes in the atmosphere before reaching Earth’s surface. That phenomenon is what creates the shooting stars and meteor showers that stargazers hike out to remote locations to watch.

Those that do make it to the Earth’s surface are known as meteorites – and the American Meteor Society estimates between 10 to 50 meteorites make landfall each day. But only around two to 12 of those will hit anywhere near an inhabited area, with the rest falling into the ocean or landing on uninhabited land.

So, the odds of a meteorite careening into your home are comfortingly low. But, as that Georgia homeowner may soon find out, low is not the same as zero.

Does home insurance cover meteorites and other objects from space?

Fortunately for that Georgia homeowner and for you, most standard home insurance policies would cover falling objects, including meteorites, satellites and space junk.

Specifically, a standard HO-3 policy usually protects the physical structures on your property – like your home and garage – against all perils except for those expressly excluded, like flooding or earthquakes. While you’d need separate flood insurance or earthquake insurance to cover those exclusions, falling objects are not typically excluded in a standard policy.

At the same time, your personal property, or the contents inside those physical structures, will either have that same coverage or be covered under a specific set of named perils, with anything not named in your policy being excluded.

Even in this case, falling objects are often one of the named perils covered in a standard policy. Still, if you want to be absolutely sure, you can review your policy now and look for “falling objects” as a named peril or, less likely, as an exclusion.

Now, on the off chance that a fireball crash lands into your car, you would only be covered if you had comprehensive car insurance. An event like this is rare enough that you shouldn’t let it scare you into adding extra coverage. But there are plenty of other more likely causes of damage to your car that would only be covered by a comprehensive policy. So, if you don’t already have this type of car insurance, it’s worth looking into the cost of adding that coverage.

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As we head into summer storm season, lightning strikes are an increased danger.

According to the National Weather Service, approximately 100,000 thunderstorms occur in the United States each year, and certain locations, such as west central Florida, can experience particularly severe thunderstorms.

Natural disasters such as lightning can cause death and property destruction, and lightning strikes are a frequently overlooked danger. These lightning safety tips can help you protect yourself, your loved ones and your home.

How to stay safe during lightning storms

If you’re caught in a lightning storm, understanding how to stay safe could save your life. The National Weather Service reports that about 20 people are killed by lightning in the United States each year. Survivors of lightning strikes can experience significant injuries, and some could face lifelong neurological damage.

Fortunately, these lightning safety tips can help keep you safe during storms:

• Watch the forecast: Check the summer weather forecast before you head outdoors, especially if you’re going to go boating or hiking. While you’re out, watch for dark clouds, and carefully listen for distant thunder.
• Keep your distance: Lightning can strike as far as 10 miles from the nearest rainfall, so it doesn’t have to be raining for you to be struck. If there’s a storm remotely nearby, it’s time to seek shelter.  
• Stay in your car: If you’re caught in a storm, don’t try to get out of your vehicle. A hard-top car’s steel frame can help protect you, but make sure you’re not touching any metal within your vehicle.
• Stay safe indoors: If you’re able to safely get into your house, stay away from windows and doors. You should also avoid lying on concrete floors or leaning on concrete walls, since lightning can travel through metal wires or bars in concrete.
• Avoid water: Lightning can travel through your home’s plumbing, so avoid contact with water, such as washing dishes or bathing during a storm.
• Avoid electronics: Lightning can also potentially travel through electrical systems in your home, so you could be electrocuted if it strikes while you’re touching an electronic device that’s plugged in. Don’t use your computer, washer, stove or other appliances during a storm.
• Wait it out:  According to the U.S. Centers for Disease Control and Prevention, you’re in the greatest danger at the beginning and end of a storm. Wait at least 30 minutes after a storm passes before you go outside.

Does home insurance cover lightning damage to your home and property?

A lightning strike, either directly to your home or in a nearby location, can cause significant damage. Lightning can cause explosions and damage to electronic devices and appliances, and it can even start fires that can damage or destroy your home.

Most homeowners insurance policies include lightning as a covered peril, and they will pay repair or replacement costs for your home and your belongings.

However, be sure to review your policy’s limits and exclusions; your personal belongings might be covered only up to a set amount, so you could still lose money if you have to replace belongings after a lightning strike.

According to the Insurance Information Institute, in 2023, United States homeowners received $1.2 billion in home insurance payouts for lightning claims. The average cost of each claim was $17,413. Florida, Georgia, Texas, California and Alabama had the highest number of lightning claims in 2023.

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Tips for protecting your home from lightning

While insurance will usually cover damage caused by lightning, it’s best to prevent the damage altogether if possible. These lightning safety tips can help you protect your home:

• Install whole-home surge protection: An electrician can install a whole-home surge protector in your home’s main electrical panel. The surge protector can help protect your appliances from electrical surges caused by lightning and other issues. Angi estimates that whole-home surge protectors cost an average of $300, and the installation costs around $100 to $200.
• Use device surge protectors: You can also buy surge protectors to use for your individual devices. Surge protectors are only intended for smaller devices that don’t draw large amounts of energy. Large appliances such as refrigerators, space heaters and air conditioners need to be plugged directly into a wall outlet.
• Unplug your devices: If you’re home when a storm strikes, unplugging your devices offers extra protection.
• Invest in a lightning protection system: A lightning protection system can help prevent or minimize damage to your home. The system incorporates a lightning rod, which intercepts a lightning strike. Once the lightning strikes the rod, it’s guided through a safe, conductive path to the ground. According to Angi, these systems cost from $443 to $2,663 to install.

Some of these preventative measures, such as a whole-home surge protector and a lightning protection system, might qualify for a discount on your homeowners insurance and could lower your premium.

If you’re considering installing any of these systems, contact your insurance company ahead of time to see if the system qualifies and to make sure you meet any additional requirements.

Even if you don’t receive an insurance discount for these summer storm safety measures, they can pay off in increased peace of mind, knowing that you’re protecting your home.

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Once upon a time, we had weather “seasons.” You know, wildfire season out West, hurricane season along the coasts, tornado season anywhere in between. Toss in some softball-size hail in the South … you get the idea.

There was some pattern to watch, some historical data that actually supported what we were seeing and expected to see.

Now, every day, there seems to be the potential for catastrophic damage somewhere from the weather or wildfires.

The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

Here’s how you can help protect your home from the storms and other disasters that keep coming — and save some money on your insurance as an added bonus.

1. Protect your home from hurricanes as much as you can

In 2012, Hurricane Sandy, aka Superstorm Sandy, set the record for the largest Atlantic hurricane ever recorded. At its peak, its winds stretched 1,150 miles across.

But it isn’t always about size. Hurricane Katrina, in 2005, was the most devastating hurricane to ever hit our country, with damage costs of about $190 billion and more than 1,800 fatalities.

The damage that hurricanes can do cannot be overestimated. Here are a few things you can do to batten down the hatches:

• Install hurricane shutters or impact-resistant windows
• Secure the roof
• Reinforce entry doors and garage doors
• Trim trees and secure outdoor items
• Clear drainage areas and seal openings

2. Protect your home from tornadoes as much as you can

The May 2011 tornado that struck Joplin, Missouri, caused more than $3 billion in damage and killed 158 people, injuring more than a thousand.

This monster was over a mile wide and ran for a full 22 miles.

Here are five things you can do to be as prepared as you can be:

• Have an emergency kit on hand
• Develop a family communication plan
• Secure your personal property
• Know where in your house or nearby to take cover at a moment’s notice
• Keep the news on and listen to warnings

While we don’t tend to get very much notice for tornadoes, we can still do what we can to have all of our ducks in line.

3. Protect your home from fire as much as you can

From January 7 to January 31, wildfires ravaged Southern California with damages to the tune of $275 billion. These fires took out more than 10,000 structures and killed 30 people.

Wildfires are not just a California thing either. In the past five years alone, more than 30 million U.S. acres have burned.

Here are some things you can do to prepare:

• Create a defensible space around your property
• Harden your home with ember-resistant vents and noncombustible roofs
• Keep important documents in a fire-safe place or off-premises
• Back up all electronic data to a location other than your home
• Follow the most up-to-date building codes to protect against fire

4. Protect your home and other property from hail

Hail happens. Big hail. In 2022 alone, more than $3.5 billion in insurance claims related to hail were filed. We saw hailstorms in Minnesota, Texas, Arkansas, Illinois, Nebraska, Wisconsin, Iowa, Colorado, Oklahoma and South Dakota.

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Hail is one of those crazy things that can happen fast. It can injure and even kill people, as well as make a real mess of property.

For hail prep, think of these steps:

• Protect vehicles and outdoor equipment (hopefully you have a garage)
• Reinforce the roof and gutters
• Secure windows and cover skylights, if possible
• Keep a first aid kit handy
• Keep a keen ear to the news so you aren’t caught off guard

Now that you have some ideas on how to protect your house, let’s talk about how you may even save money on your insurance premiums.

Remember, you and the insurer are aligned here, you want to avoid a loss, and so does the insurance company, so they will likely be willing to offer you a break in what you are paying them for doing any number of things, including everything we talked about above.

Discounts exist, depending on your state and insurance company, for:

• A stronger roof
• Cleared flammable items and brush
• Smoke alarms
• Sprinklers
• Certain types of windows
• Home bolting and retrofitting
• And more

The best way to find out how much you can save and for what, is to call your insurance agent or broker and ask one simple question: “Please tell me all the discounts that are available for my policy.”

Then you can see what you can do, or what you have done, that counts as a premium-reduction discount.

Don’t ask, “How about this?” or “How about that?” Ask for the entire list and go through it. Your wallet will thank you.

Want to learn more about insurance? Visit KarlSusman.com.

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• I'm an Insurance Expert: This Is How You Get the Right Insurance Coverage at the Right Price
• Four Reasons It May Be Time to Shop for New Insurance
• How to Balance Your Insurance Expectations vs the Reality
• Are You Tempted to Drop Your Homeowners Insurance?

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Kiplinger readers are a savvy bunch, especially when it comes to making smart choices with their money. So for the third year running, we asked you to rate financial providers based on your experiences with them. More than 2,700 readers completed our survey earlier this year, judging the products and services they use in 13 categories, from brokers and wealth managers to annuity providers, tax software, and home and auto insurance companies.

In the survey, respondents scored providers on certain criteria, such as their experience with the company’s customer service team, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. Readers also had the option to leave comments about their experience, and we have shared some of them in the full category guides (remarks may be lightly edited for length and clarity).

For each category, we’ve listed an overall winner that earned the highest total score. We’ve also listed other products and services that earned above-average scores for the various criteria we asked readers to assess. Many thanks to all of you who participated in the survey.

Kiplinger Readers’ Choice Awards Categories

Best Full-Service Brokers

We asked readers to evaluate brokerage firms whose offerings run the gamut of services to customers, whether online, by phone, through in-person assistance at brick-and-mortar branches, or some combination. Readers rated the strength of their broker’s customer service, how likely they are to recommend the firm to others and their overall satisfaction with the broker.

The overall winner is Fidelity Investments.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best full-service brokers.

Best Wealth Management

These firms take a holistic look at your finances and offer advice tailored to you. Beyond assisting with investment strategies, advisers may help you manage credit and debt, savings, estate and tax planning, and more. Readers rated wealth managers based on the quality of financial advice they received, the trustworthiness of the advisers, how likely they would be to recommend the firm to others and their overall satisfaction with the wealth manager.

The overall winner is Fidelity Wealth Management.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best wealth management services.

Best Cash Back Credit Cards

Cash back cards usually offer simple terms and the opportunity to earn rewards on everyday purchases. We asked readers to rate cash back cards on the responsiveness of customer service, how likely they would be to recommend the card to others and their overall satisfaction with the card.

The overall winner is Fidelity Rewards Visa.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best cash back credit card.

Best Travel Rewards Credit Cards

These cards typically offer extra points or miles on travel spending. And many heap on additional perks, such as statement credits for hotel, airline or dining purchases. Readers rated travel rewards cards on the strength of customer service, the likelihood they’d recommend the card to others and overall satisfaction.

The overall winner is the Platinum Card® from American Express.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best travel rewards credit card.

Best Airline Card Rewards Programs

Airline credit cards reward brand loyalty. You’ll get miles or points for every flight you book with the airline, and with some programs, you can earn free airline tickets, access to airport lounges and other travel perks. We surveyed readers in three areas: strength of customer service, whether they would recommend the credit card program to others and overall satisfaction.

The overall winner is the Southwest Airlines credit card rewards program.

Read our full guide: Kiplinger Readers' Choice Awards 2025, airline credit card rewards programs.

Best Hotel Credit Cards Rewards Programs

As with airline card programs, hotel credit card programs reward you for being loyal to a particular hotel chain. The more you stay, the more perks you can receive, such as free nights, upgraded rooms, late checkouts and more. These hotel credit card programs earned top marks from our readers, who rated the programs on the strength of customer service, the likelihood they’d recommend the program to others and overall satisfaction.

The overall winner is the Marriott Bonvoy credit card program.

Read our full guide: Kiplinger Readers' Choice 2025, Hotel Credit Card Rewards Programs.

Best National Banks

These large institutions have a presence in many states and offer branches where you can conduct transactions. We assessed readers’ overall satis­faction with their bank, their opinion of its customer service and the like­lihood they would recommend the bank to others.

The overall winner is Chase Bank.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best national banks.

Best Internet Banks

Internet banks often provide higher yields than their brick-and-mortar counterparts. The reason? Internet banks don’t have physical locations, so their overhead costs are lower, allowing them to pay out better rates. Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

The overall winner is Charles Schwab Bank.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best internet banks.

Best Auto Insurance Companies

We asked readers to weigh in on auto insurance, judging their primary provider based on how competitive the rates are, their experience with filing claims and how likely they are to recommend the insurer to others. The following companies stood out from the rest in our survey.

The overall winner is USAA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, auto insurance companies.

Best Homeowners Insurance Companies

Readers rated their homeowners insurance provider based on how competitive the rates are, how positive the experience is when filing a claim and how likely they would be to recommend the insurance company to others. Most of the providers that collected accolades for homeowners insurance are also honorees for their auto insurance services.

The overall winner is USAA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, homeowners insurance companies.

Best Annuity Providers

Annuities are contracts that allow you to pay an amount up front or over time in exchange for the opportunity to create a steady stream of income in retirement; they may be fixed or variable, and they may provide income immediately or in the future. We asked readers to assess their annuity provider based on customer service, their overall satisfaction with the company and how likely they are to recommend it to others.

The overall winner is New York Life.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best annuity providers.

Best Tax Software

These programs guide taxpayers through the ins and outs of preparing and filing a tax return. The offerings vary depending on your return’s complexity and whether you want help from a tax pro. We asked readers to rate their preferred tax-filing software based on ease of use, how likely they are to recommend the service to others and overall satisfaction with it.

The overall winner is FreeTaxUSA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, tax software.

Best Peer-To-Peer Payment Apps

Peer-to-peer payment apps allow you to digitally send and receive money with friends and family from your smartphone. We asked readers to evaluate their preferred payment app’s ease of use, their overall satisfaction with it and how likely they are to recommend it to others.

The overall winner is Apple Cash.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best peer-to-peer payment apps.

How Readers Chose Their Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between February 20 and March 21, 2025. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: full-service brokerage firms, wealth managers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, hotel credit card rewards programs, national banks, internet banks, auto insurers, homeowners insurers, annuity providers, tax software and peer-to-peer payment services.

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider.

In some categories, we included more-nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm’s advisers and the quality of its financial advice. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring pro­viders that had a score above the overall mean won an “outstanding” accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named “outstanding.”

In each category, providers are generally listed in descending order by the number of criteria for which they received the “outstanding” designation — so a product or company that is deemed “outstanding” in three areas, for example, is listed before a provider with one or two “outstanding” awards.

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards
• Readers' Choice Travel Rewards Credit Cards
• Readers' Choice Airline Credit Card Rewards Programs
• Readers' Choice Hotel Credit Card Rewards Programs
• Readers' Choice National Banks
• Readers' Choice Internet Banks
• Readers' Choice Auto Insurance Companies
• Readers' Choice Homeowners Insurance Companies
• Readers' Choice Annuity Providers
• Readers' Choice Tax Software
• Readers' Choice Peer-to-Peer Payment Services

About the Kiplinger Readers’ Choice Awards 2025
The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps. For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Homeowners Insurance Companies

Readers rated their homeowners insurance provider based on how competitive the rates are, how positive the experience is when filing a claim and how likely they would be to recommend the insurance company to others. Most of the providers that collected accolades for homeowners insurance are also honorees for their auto-insurance services.

OVERALL WINNER: USAA

Outstanding for:

• Competitive rates
• Claims experience
• Most recommended

USAA topped the ranking among homeowner insurance policy providers as well, gaining high scores from readers in all three areas we asked them to rate. Readers like USAA for its affordable premiums and customer service during the claims process.

“Been with USAA for over 50 years, and their response to claims is superb and unmatched,” says one reader. “I recommend USAA simply because the company has great customer service and ensures we are satisfactorily covered,” says another. USAA home insurance plans are available nationwide.

Erie Insurance

Outstanding for:

• Competitive rates
• Claims experience
• Most recommended

Readers — especially those who have both a home and auto insurance policy with Erie — appreciate the insurance company’s customer service and pricing. If you bundle multiple policies, such as for homeowners and auto insurance, the typical discount is 20%, according to Erie. A discount is also available with an Erie homeowners insurance plan when you install smoke alarms, a burglar alarm system or an automatic sprinkler system in your home.

Amica

Outstanding for:

• Claims experience
• Most recommended

Although Amica didn’t score as highly as the other winners for its rates, there are a number of ways to get discounts. If you have a recently remodeled home, a newly built home, or zero claims over a three-year period, you may be eligible for a discount. Opting for paperless billing or installing a monitoring system for water or gas leaks are other ways to save.

AAA

Outstanding for:

• Competitive rates

AAA’s offerings vary by state, but many respondents rated the company highly for the competitive rates available in their state. Several respondents noted they are grateful that AAA offers coverage in areas where some other insurance companies are no longer present due to risk from natural disasters, such as in Florida and southern California.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards
• Readers' Choice Travel Rewards Credit Cards
• Readers' Choice Airline Credit Card Rewards Programs
• Readers' Choice Hotel Credit Card Rewards Programs
• Readers' Choice National Banks
• Readers' Choice Internet Banks
• Readers' Choice Auto Insurance Companies
• Readers' Choice Annuity Providers
• Readers' Choice Tax Software
• Readers' Choice Peer-to-Peer Payment Services

With hurricane season beginning in June, now is the time for homeowners to review their insurance coverage and prepare for the possibility of severe weather. While many people assume their homeowners insurance policy will cover storm-related damage, that isn't always the case, especially when flooding is involved.

Flood damage is one of the most common coverage gaps for homeowners. Standard homeowners insurance policies typically cover wind damage from hurricanes and tropical storms, but they almost always exclude damage caused by flooding. Unfortunately, many homeowners don't discover this limitation until after water has already entered their homes.

Before severe weather threatens your area, take a close look at your insurance policies and understand what is and isn't covered. If you don't already have flood insurance, you may still have time to purchase a policy. Here's how much flood insurance costs, what it covers and why it may be worth considering even if you don't live in a high-risk flood zone.

How much is flood insurance?

The Federal Emergency Management Agency (FEMA) reports that an average National Flood Insurance Program (NFIP) policy costs about $786 per year, based on 2023 data. That equates to about $65.50 per month. Private insurance providers also offer flood insurance, and rates for those policies can vary.

Several factors will affect your flood insurance cost. One of the biggest is whether your home is in a designated flood zone and its elevation level. Homes in flood-prone areas or at lower elevations typically face higher premiums due to the increased risk.

Insurers also consider the value of your home and how much it would cost to replace it. If you’ve previously filed home insurance claims, an insurance company may see you as a higher risk to insure and may charge you higher premiums.

While paying for flood insurance is another expense in addition to your standard homeowners insurance costs, flood insurance may help cover expensive repair or replacement costs after a flood. According to the National Flood Insurance Program (NFIP), 99% of United States counties have been impacted by flooding since 1996, and NFIP policyholder claims average $68,000.

Use the tool below, powered by Bankrate, to compare some of today's top insurance offers:

Does home insurance cover flood damage?

No, standard home insurance policies do not cover flooding. To make things more annoying, water damage that you might not consider flood-related could still be classified as flooding by your insurance company.

Because of these tricky classifications, it's usually a good idea to add home insurance even if you don't live in a flood-prone zone.

Does renters' insurance cover flood damage?

Like home insurance, renters' insurance does not usually cover damage to your belongings caused by flooding. Fortunately, a flood insurance policy for renters is usually cheaper since it only has to cover your belongings, not the property itself.

What does FEMA’s Risk Rating 2.0 mean for homeowners who need flood insurance?

FEMA implemented Risk Rating 2.0, a new method for calculating NFIP policy pricing. Risk Rating 2.0 went into full effect on April 1, 2022, and changed the way that policies are calculated.

Under the former calculation method, flood insurance premium calculations were heavily based on factors like a home’s flood zone and elevation.

Under Risk Rating 2.0, the factors considered are expanded, including a property’s flooding frequency, common flood types, its proximity to flood sources, and building characteristics, like the height of its first floor. Rather than relying on a flood map, the Risk Rating 2.0 system calculates premiums based on factors specific to individual homes.

According to the NFIP, Risk Rating 2.0 helps ensure that rate increases and decreases more accurately reflect the flood risks that individual homeowners see. NFIP reports that 96% of policyholders will see decreases or increases of no more than $20 per month under Risk Rating 2.0.

What does flood insurance cover?

Flood insurance covers your building and its components, including the electrical and plumbing system, built-in appliances, fuel tanks and solar energy equipment and detached garages.

A standard flood insurance policy also provides coverage for your personal belongings. This includes items such as clothing, furniture, electronics and appliances like your washer and dryer.

Most policies include limited coverage for high-value items, such as artwork or collectibles, though coverage caps may apply. Be sure to review your policy details to understand what is included and whether you may need additional coverage for certain valuables.

Flood insurance generally excludes items such as cars, swimming pools and decks. Policies through the National Flood Insurance Program (NFIP) also do not cover temporary housing or additional living expenses if you’re displaced from your home during repairs.

Coverage exclusions vary depending on the policy you purchase, so make sure to thoroughly read and understand your flood insurance policy. If you have any questions about your insurance, contact your insurance company when purchasing the policy to get a clear explanation.

Who needs flood insurance?

If your home is in a high-risk flood area, such as a flood zone, it’s a very good idea to purchase flood insurance. If you have a mortgage by a federally regulated lender, your lender may require you to buy a minimum amount of flood insurance to protect your home.

Flood insurance isn’t necessarily required if you’re in a low or moderate risk area, but it’s still a good idea. According to the National Association of Insurance Commissioners, 25% of floods occur outside of high-risk areas.

Many situations can cause floods, such as a neighbor’s pool draining into your home or heavy spring rains that flood your basement. Buying flood insurance can give you peace of mind knowing that your home is protected just in case.

How to reduce flood risk and lower your flood insurance cost

There are several ways you can reduce the risk of your home flooding:

• Elevate your home: If your home is at high-risk in a flood zone and has previously flooded, you may consider raising it up to prevent future flooding. This is a significant investment, but it could be worth the cost if your home repeatedly floods.
• Seal your foundation: You can apply a waterproof foundation sealer to your home’s foundation to help keep water from penetrating it. Be sure to focus on seams and vents to close up any gaps.
• Install a backflow valve on your sewer: Water damage caused by a sewer backup is considered flood damage and isn’t covered under your traditional homeowners insurance. You can install a backflow valve on your sewer to help prevent any water from entering your home.
• Elevate your heating and cooling systems: Consider elevating your heating and cooling systems, electrical panels and water heaters so they are less likely to be damaged in a flood.

Your flood insurance provider may give you a discount for implementing some of the above steps to reduce flood risk to your home. Contact them to describe the ways you’re actively working to reduce flood risk.

If you want to save more on your flood insurance, be sure to shop around and get quotes from multiple companies. You might also choose a policy with a higher deductible, which can lower your premiums. Just be sure that you have money for the deductible set aside in case you ever have to file a claim.

Related content

• Hurricane Insurance Claims: 10 Things You Need to Know
• Should You Get Earthquake Insurance?
• 8 Reasons Why Your Home Insurance Costs Are Surging
• 4 Ways to Lower Your Home Insurance Premium in 2025

Did you know your local independent insurance agent of broker can kick you to the curb if they are so inclined? Why in the world would they want to get rid of someone who generates income for them?

Here are the top five reasons why your insurance agent or broker may tell you to take a hike.

1. Being abusive to the agent and staff

I get it. You are contacting your insurance agent or broker only when there is an issue. You need to add a new car, or you have a claim. Rarely do you just pick up the phone or shoot over an email that says, “Hey, thanks for being there, buddy!”

The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

However, that doesn’t give you a reason to be a jerk. You’re talking with people, other human beings, with feelings, families and lives of their own. Yes, you are the customer, and the customer is always right, but that is not to the exclusion of all decency.

Pro tip: Remember this the next time you’re interacting with your insurance professional — you’re talking to a person. Imagine you are face-to-face, not behind the protection of your keyboard or cellphone.

2. Asking the same questions over and over

Sometimes you have a question about your insurance policy, or a claim, or a billing issue, or any number of things. Totally legit, totally OK, and that’s what your agent or broker is there to assist you with.

When it gets to be a problem is if you can’t, or won’t, remember what you’ve been told. It can go something like this:

• Monday. You ask your agent if you can let your neighbor drive your car for an emergency. You get the answer.
• Thursday. You call your agent again to find out if you let your neighbor borrow your car, will your policy cover them? Answer given.
• Following Tuesday. You email your agent to say your neighbor took your car to the market. Is that OK? Answer given.

There is nothing wrong with asking the question, but if you’re asking the same question over and over and over … Well, you can see how that may drive your licensed insurance professional bonkers.

Pro tip: If you have a bad memory, take notes.

3. Not paying your bills

Your insurance policy costs money, not unlike pretty much everything you buy in this world. And if you don’t pay the premium, then, big surprise, the insurance policy will be canceled.

If you have a credit card with a balance, all is good as long as you make the payments. But if you stop paying, the card issuer will cancel the card, and you’ll be sent to collections. Not good stuff.

When your insurance policy is canceled, there is this thing called Murphy’s Law that says that the moment you have a lapse in your insurance coverage, you will have a loss and need your insurance.

This puts you in a precarious situation and your insurance professional is stuck having to deliver the news to you that you don’t have insurance because you didn’t pay the bill. Not a conversation anyone wants to have.

Pro tip: If you can’t remember to pay the bill, consider using automatic payment plans, such as auto-debiting from your checking account or even charging a credit card (get those rewards points!).

4. Leaving unfounded or angry online reviews

Picture this: You’re upset that your auto insurance premium increased. Mind you, this has literally nothing to do with your insurance agent or broker — they don’t set the rates.

You’re ticked off and go online and leave a review on Yelp or Google that skewers your agent or broker specialist for charging you too much when the car accident you had was not your fault.

You make Yelp happy with a detailed recounting of your situation and smash that one-star button. Ha!

Later, when you call your agent with a billing question, you’re surprised that the person you burned isn’t super friendly with you?

Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.

Pro tip: Don’t complain about your insurance agent or broker online. If you have a problem, reach out to them to talk it over or find a new agent.

5. Being in the 20% of the 80/20 rule

The 80/20 rule is well known in the business world. It posits that 80% of your time is taken up by 20% of your clients. That means that when the phone rings at your agent’s office, 80% of the time it is someone who calls a lot. Over. And over. And over.

I can’t explain why this happens. However, I can attest to the fact that the phenomenon is real. Some people call their insurance agents and brokers, and some just don’t.

If you find yourself knowing your agent or broker’s phone number or email by heart, you may be in that 80%. And your agent or broker does not love that about you.

Insurance agents and brokers are running businesses. Like all businesses, there are finite resources. If you’re using up the lion’s share of those resources, you leave other customers, and the business owner, at a disadvantage. It leads to an overall bad experience for everyone.

By all means, utilize your insurance guru — that’s why you chose to purchase through a person, not a machine or online.

Pro tip: Remember that there are others like you who have chosen the same insurance agent or broker and deserve the attention we all want.

Want to learn more about insurance? Visit KarlSusman.com.

Related Content

• I'm an Insurance Expert: This Is How You Get the Right Insurance Coverage at the Right Price
• Four Reasons It May Be Time to Shop for New Insurance
• What Claims Adjusters Are Thinking vs What They're Saying
• How to Balance Your Insurance Expectations vs the Reality

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Americans faced 5,430 severe hail events last year, according to the National Weather Service Storm Prediction Center Annual Severe Weather Report Summary. And that's considered a relatively mild year for hailstorms, with the count topping 7,300 in 2024 and over 10,000 in 2023.

The point is: Hail happens often, especially if you live in the Midwest. And the damage these natural disasters cause adds up. According to a 2023 analysis by State Farm, the major insurance agency paid out $3.5 billion in hail-related claims that year. That's just one insurer in one year.

Hail can dent vehicle exteriors and crack windshields, as well as damage your home's roof, gutters and windows.

Fortunately, your home and auto insurance policies can help cover some of the costs of repairing your home or vehicle. To maximize your insurance payout, you'll need to be sure to meet your insurer's claim requirements.

In some cases, it may make more sense to pay for the damage out of pocket, so before you file a hail damage claim, take a moment to review whether it will pay off.

Is a hail damage insurance claim worth it?

Before you file a hail damage claim, start by reviewing your insurance policy. Most homeowners insurance policies and comprehensive auto insurance policies cover hail damage. Confirm that you have coverage for hail damage but also review your deductible to decide if you should file the claim.

Your insurance deductible might be as small as a few hundred dollars or it could be several thousand dollars. Whatever you've set it at, consider whether the cost of the hail damage will exceed the deductible.

For example, if you have a $4,000 deductible and your home has sustained only minor damage, it may make more sense not to file a claim. You'll be paying the bulk of the repair costs out of pocket anyway, so there's no reason to add a claim to your record.

You'll also need to consider potential rate increases and long-term implications. Filing a claim can also cause an insurer to increase your premiums. Insurers base your rates, in part, on how likely you are to file a claim. So, the logic is that if you've filed one in the past, you're more likely to file another one in the future. The insurer may raise your rates as a result.

If you have multiple claims in a short period, you might even face a nonrenewal or cancellation down the road if you file another claim now as the company decides you're too risky to insure.

Generally speaking, it makes sense to file a hail damage insurance claim when the damage is substantial and will cost more than your deductible to repair. If you have minimal damage and the repairs are affordable, you may decide to pay for the repairs yourself, avoiding any insurance premium increases.

How to file a hail damage insurance claim

If you decide a hail damage claim is worth it, you should immediately document the damage to your home or car right away. Take clear, detailed photos and videos from different angles and include a timestamp.

Try to estimate the size of the hail and take photos of the hail with a common object, like a dollar bill, for a size reference. Keep your photos and videos organized and label them so you can easily access them. Make sure to write down the date and time when the damage occurred, too.

Next, file the claim with your insurance company. To get an insurer to pay your claim after a natural disaster, it's important to file quickly. Many insurance companies now have apps that you can use to file a claim, and you can often upload photos right within the app.

If you have questions about the claims process, you can also file a claim over the phone. Be sure to record the representative's name and date of the call, and take detailed notes about any next steps.

If this is your first claim, pay attention to how the claims process was. Was it a smooth process, or was it overly complicated and riddled with unhelpful customer service every step of the way? If your current insurer made filing this claim a headache, it may be worth shopping around ahead of your next renewal to see if you can find better rates (and service) elsewhere.

For car insurance, you can start your search with our car insurance comparison tool, powered by Bankrate:

Tips for working with adjusters on your hail damage insurance claim

Once you've filed a claim, your insurance company will usually schedule a time for an adjuster to come out and review the damage in person. In the meantime, contact local contractors or auto repair specialists to get quotes of your own. Try to gather three quotes in writing for the repair costs.

During your appointment with the adjuster, you can share your photos and videos and the repair quotes that you’ve gathered. The adjuster will review the damage, estimate the repair costs, and prepare an initial claim offer.

You don't have to accept the initial claim offer if it doesn't cover all of the work and expenses that the contractors included in your estimates. You can contact the adjuster again and highlight the differences in cost, and they may be willing to increase the offer.

If you don't reach an agreement with the adjuster, you have several other options:

• Hire a public adjuster: A public adjuster works to help you get the claim amount that you're entitled to. When hiring a public adjuster, look for someone local and research the company's reputation. Public adjusters charge a percentage of the claim payout that you receive in exchange for their service.
• Contact your state's insurance commissioner’s office to file a dispute: Your insurance commissioner can advocate for you and can work to reach a claim payout agreement that's fair.
• Hire a lawyer to represent you: A lawyer can negotiate with the insurance company on your behalf and may be able to secure an agreement that covers your repair costs. If the lawyer can't reach that agreement through negotiation, they can represent you in court. Hiring a lawyer can be very expensive, so this option makes the most sense if your house has sustained extensive damage and you have a very expensive claim.

How to complete the insurance claim process

Once you've agreed on a payout amount, sign the claim agreement to finalize the claim. Your insurance agent will inform you how you'll receive payments, whether you'll receive one or more checks in the mail or the insurer plans to pay the contractor directly.

Your insurance company may recommend local professionals who can repair your home or car. But you have the right to choose your own contractor or repair shop. You might decide that one of the contractors you received a quote from is right for the job, or you can continue speaking with local contractors until you find one you trust. Be sure to ask the contractors about their timelines, including when they'll be able to start and finish work.

Dealing with hail damage is an inconvenience, but filing a claim with your insurance company can help pay for many of the costs involved. By properly documenting the damage and being prepared to work with the adjuster, you can maximize your claim payout to cover most of your repair costs.

Compare some of today's top home insurance offers with the tool below, in partnership with Bankrate:

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The National Weather Service may be predicting a quieter hurricane season this year, but flooding events are already picking up pace. From dangerous rip currents to flash flooding, the stormy summer weather to come could put your home at risk of water damage, even if you're safely outside of hurricane country.

If any kind of water does cause damage, there is, unfortunately, a pretty high chance your home insurance won't cover the bill.

As you brace for summer storms, here's what you need to do to prepare for a hurricane and prevent water damage around your home. You'll also get information about the supplemental insurance coverage you need to line up before natural disaster strikes.

Does home insurance cover water damage?

Your homeowners insurance helps cover many types of damage that may occur to your home, but when it comes to water damage, insurance claims get more complicated.

There are several types of water damage not covered by insurance, so depending on the cause of the damage, you might be fully responsible for the repair costs.

Water damage is a common and often costly home repair. According to the Insurance Information Institute, from 2018 to 2022, the average cost of a water damage claim was $13,954. About one in 60 homes filed a claim for property damage caused by water damage or freezing.

To make sure you’re covered, it’s a good idea to thoroughly read your insurance policy. Look for mentions of the types of water issues that home insurance won’t cover.

Common water issues home insurance won’t cover

While insurance will cover certain types of water damage, there are many common water damage exclusions.

• Gradual Leaks: Home insurance is designed to cover damage that results from unexpected, sudden events, like a burst pipe. Slow, unnoticed leaks from pipes, faucets, appliances or roofs that take place over time are usually considered to be maintenance issues, not sudden accidents. Insurance companies consider these types of gradual leaks to be the homeowner’s responsibility.
• Sewer Backups: A sewer backup, in which water backs up into your home through the plumbing system, can cause thousands of dollars in damage, but most traditional home insurance policies won’t cover sewer backups.
• Flooding: If water from an outside source enters your home, it's considered to be a flood. That includes water that comes from heavy rains, hurricanes, overflowing rivers or snowmelt. Most traditional policies don't include flood insurance, so water entering your home from an outside source isn't covered unless you have a separate flood insurance policy.
• Broken Appliances: If your dishwasher, water heater or washing machine leaks, your insurance may cover the damage if the leak was sudden, such as if the machine unexpectedly broke. But if the machine malfunctioned because of wear and tear or lack of maintenance, your insurance won’t cover the damage.

10 tips to help avoid water damage to your home

There are several ways to actively help prevent water damage to your home.

1. Regularly Inspect Plumbing: Since homeowners insurance won’t cover gradual leaks that are caused by old or poorly maintained plumbing, regularly inspecting your plumbing can help you identify these leaks early on to minimize damage.

Look for corrosion or slow leaks in areas under your sink or behind appliances. If you find any issues, promptly have a plumber out to evaluate and fix the leaks.

2. Maintain Your Roof and Gutters: Keep your roof in good repair to protect your home's interior from water damage. Inspect the roof at least twice a year, during the spring and fall, as well as after any heavy storms or strong winds.

Promptly repair missing or damaged shingles and trim back any tree branches that could damage your roof. Regularly clean your gutters and keep your downspouts clear to prevent water backup and to channel water away from your home.

3. Install a Water Leak Detection System: A smart leak detector like the Ring Flood and Freeze Sensor can identify water pooling on a floor and send an alert to your phone so you can quickly address the issue.

If you want a more comprehensive solution, a device like the Moen Flo Smart Water Monitor can detect abnormal water usage in your home and shut off the water to prevent leaking and flooding.

4. Maintain Your Sump Pump: Test your sump pump twice a year and before any anticipated big storms or heavy rains. During storms, check your basement frequently to make sure the pump is operating correctly.

Consider installing a sump pump with a battery backup system, which can keep the pump operating during power outages. You can also install a sump pump monitoring system, like the Level Sense Sump Pump Monitor, which monitors your sump pump and sends an alert to your phone if it detects an issue, like a high water level.

5. Strategically Grade Landscaping: Walk around your home and inspect the grade of your landscaping. Landscaping that slopes toward your home can direct water into your foundation, potentially leading to leaks.

Regrade the landscaping so the ground slopes away from your home, directing rainwater and snowmelt away from the foundation.

6. Seal Foundation Cracks: Regularly inspect your basement and foundation walls and floors for any cracks, which could let moisture into your home. You can seal small cracks yourself, but be sure to hire a professional to address larger issues.

7. Maintain Your Appliances: Keep track of the age of your appliances and their required maintenance using a digital calendar or other monitoring system.

Replace washing machine and dishwasher hoses every five years, or sooner if they show signs of wear. When you replace them, upgrade to stainless steel braided hoses, which are extra durable.

8. Install a Backwater Valve: A backwater valve helps prevent any water leaving your home through drain pipes from reentering your home. Hire a plumber to install a backwater valve in your home to help prevent sewer backups.

Some cities even offer residents rebates to install them, so check with your town hall for any potential savings.

9. Choose Waterproof Materials in Your Home: You can also weatherproof your house through strategic material choice. Consider using water-resistant flooring and sealed surfaces in spaces like basements, kitchens and bathrooms where leaks and moisture could be an issue.

If your basement often experiences leaks and moisture, a raised modular flooring tile allows water that gets underneath the tile to quickly dry for a lower-maintenance option. Installing a dehumidifier can also reduce moisture in your basement.

10. Review and Update Your Insurance Coverage: You can buy additional insurance coverage and endorsements to extend your homeowners insurance water damage coverage. For example, some insurance providers offer a sewer back-up endorsement that would cover damage caused if your sewer system backs up into your home.

You can also purchase a separate flood insurance policy that would cover damage caused by flood waters, whether that’s from a hurricane or a heavy rainfall. If you’re thinking of buying extra coverage, thoroughly read through the policy and make sure you understand any exclusions.

Use the tool below, powered by Bankrate, to compare today's top home insurance offers:

The best ways to prevent homeowners insurance water damage issues

Since many types of water damage are not covered by insurance, it’s helpful to take an active role in preventing damage from occurring in the first place.

Focusing on maintaining and weatherproofing your home can minimize or prevent water damage and save you money in the long term.

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The rise in natural disasters, including wildfires and droughts, has taken a heavy toll on California, leading to unprecedented financial impacts. Insurers are bracing for potential losses of $135 billion to $150 billion from the January wildfires alone.

As traditional insurers pull out of the state or limit coverage, unregulated carriers are stepping in. However, with less oversight, homeowners are taking on greater risks, and many are seeing more insurance claims denied by these companies.

This shift in the insurance landscape has left many homeowners in a precarious position, unsure of where to turn for reliable coverage. As more residents face claim denials and policy limitations, the long-term viability of these unregulated carriers is coming under increased scrutiny.

The challenge of getting insurance in California

Securing home insurance in California has become increasingly difficult, with the state now facing a full-blown insurance crisis. Even homeowners who manage to secure coverage are grappling with rising rates.

According to ABC News, state regulators approved a 12% average rate increase for Mercury General homeowners' policies in March. Safeco is set to raise rates by an average of 7.2% in May.

Finding homeowners insurance is becoming more challenging as insurers face mounting claims from natural disasters like the California wildfires. These events are causing substantial financial impacts, leading some insurance companies to withdraw from the state entirely.

The Public Policy Institute of California reports that more than 100,000 homeowners lost coverage between 2019 and 2024 as insurers canceled or declined to renew policies.

Since 2022, seven of California’s top 12 insurance providers have scaled back their offerings or exited the market altogether. Major insurers like State Farm, Farmers and Allstate have limited new policy issuance, while Tokio Marine Holdings announced their departure from the California home insurance marketplace in 2024.

The rise of surplus line insurers: Why more Californians are turning to unregulated coverage

As traditional or “admitted” insurers retreat from California, unregulated insurers are stepping in to fill the gap. Admitted or licensed insurers are required to file their rates with the Department of Insurance and participate in the California Insurance Guarantee Association (CIGA), which offers some protection if an insurer goes bankrupt.

In contrast, non-admitted or surplus line insurers can operate in California without filing their rates with the Department of Insurance or participating in CIGA. This means that homeowners who choose surplus line coverage don’t have the same financial safety net if the insurer becomes insolvent or can’t pay claims.

Historically, surplus line insurance was used primarily for high-risk properties or cases where traditional coverage was unavailable. However, it has increasingly become a mainstream option for many Californians as admitted insurers leave the market.

Data from the Surplus Line Association of California reflects this shift. In Bakersfield, surplus line insurers saw a staggering 2,500% increase from 2023 to 2024, while San Jose experienced a 1,500% increase over the same period.

Why insurance claim denials are on the rise

While surplus line insurers provide an alternative for homeowners who can’t secure coverage through traditional carriers, they operate under fewer regulations, and that’s causing problems.

These insurers have more flexibility when designing policies and adjusting rates, which can result in higher premiums and more exclusions for policyholders.

Reports indicate that surplus line insurers are denying homeowner insurance claims at an unusually high rate. This means homeowners, already paying more for coverage, may find themselves without financial assistance when their property is damaged or destroyed. In such cases, policyholders have little recourse, leaving many claims unpaid.

How California homeowners can find home insurance

Surplus line insurance comes with a risk of higher insurance claim denials, so think carefully if you plan to choose a surplus line insurer.

If you need insurance coverage for your California home, there are several ways to get coverage.

• Contact local insurance brokers or agents. They will be aware of insurers offering coverage in your area and can help get quotes and compare rates.
• Use the California Department of Insurance’s Home Insurance Finder database. The database can help you identify insurance companies and agents and brokers.
• If you can’t find fire insurance, the FAIR Plan offers basic fire insurance coverage for high-risk properties in California.
• Focus on protecting your home from natural disasters, which may help you get insurance coverage. Create a defensible space around your home to help prevent fire spread to the structure, invest in storm shutters and consider products like fire-resistant gutter guards to help protect your home.

Finding insurance in California may take some research and time, so start the process early. While rates may be high, carefully review your policy to make sure you have enough coverage but that you’re also not paying for more insurance than you need.

Always be sure to ask about any potential discounts, such as discounts for multiple policies or for investing in modifications that will help protect your property from disasters.

Explore and compare some of today's best insurance solutions with the tool below, in partnership with Bankrate.

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Upgrading your home security can give you peace of mind, help minimize property damage, protect your family and even help you save money on home insurance rates.

If you're ready to boost your home security, you don't necessarily have to call in a professional. There are many DIY home security upgrades that you can easily make yourself.

When you're done, call up your insurer. Many home insurance companies offer discounts for home security upgrades, though the amount of the discount varies by provider and the type of device or upgrade. So, make sure to call afterward to find out if any of your DIY projects qualify for a lower home insurance premium.

1. Smart home security systems

DIY smart home security systems like Ring, SimpliSafe and Wyze offer affordable home security packages. You can choose from packages including security cameras, motion sensors and alarms.

For example, the Ring Alarm Wireless Security System includes a base station, keypad, door/window contact sensor, motion detector and range extender to help you get started. You can add on more devices over time, which can help minimize the initial costs of your security system.

These systems tend to be easy to install yourself, and you can customize them to your security goals. For example, you might decide to add on smart smoke detectors and carbon monoxide alarms. If the alarms are triggered, your monitoring system will contact your local fire department, even if you're not home at the time of the fire.

Security systems can be smart investments in your home's safety. According to a study funded by the Alarm Industry Research and Education Foundation, 60% of burglars would look for an alternative target if they saw an alarm system, and most burglars look for an alarm before attempting a burglary.

Additionally, some insurers offer discounts for monitored systems or even unmonitored smart home security systems. So be sure to ask your home insurance provider if there are discounts available and which type qualifies.

2. Deadbolts and reinforced door hardware

The deadbolt that's currently on your door might not do the best job of protecting your home, so consider reinforcing it with a Grade 1 deadbolt.

The American National Standards Institute developed a system to rate deadbolt quality. Grade 1 deadbolts offer the highest quality, most reliable security based on factors like their strength and the quality of materials used.

Upgrading your deadbolt can help prevent a burglar from being able to kick in your door. In addition to investing in a Grade 1 deadbolt, reinforce your door frame with a steel strike plate.

Use long screws that go at least one inch into the door frame stud to maximize the resistance of the strike plate, making your door more difficult to kick in. These affordable upgrades can have a big impact on your home’s security.

3. Motion-sensor lights and smart bulbs

Outdoor motion-sensor lights can deter break-ins and improve the visibility around your home. Since the lights only turn on when activated, they can help save you money on your electrical bill while improving your home's security.

You can install many motion-sensor lights in place of an outdoor flood light, but you'll need some electrical knowledge since the lights will have to be wired in.

Solar motion-sensor lights, like the Bell + Howell Solar Powered Motion Sensor Flood Light, are much simpler to install and can be easily relocated around your home and yard as needed.

4. Security window film

Security window film helps strengthen your glass windows, absorbing impacts from a break-in attempt and helping to prevent the window from shattering.

Some window films also darken your windows to prevent burglars from being able to easily see into your home.

Window film is easy to install and can be left in place for years. It may help to slow or deter break-ins, and can also help minimize storm damage.

5. Video doorbells

Video doorbells are affordable and easy to install, and many can pair with your existing smart security system.

While some doorbells are designed to be hardwired, there are plenty of battery-powered options, like the Ring Battery Doorbell Plus, that make for an easy DIY installation.

If you're renting your home, look for a no-drill video doorbell mount that's easy to install and just as easy to remove when it's time to move out.

With a video doorbell, you can answer your door and speak with visitors even when you aren't home. The doorbells also capture and store video footage that you can use as evidence in case you need to file a home insurance claim. These doorbells offer peace of mind and are a great investment in your home's security.

Additional ways to lower your home insurance premiums

If you're looking to lower your home insurance premiums, start by calling your insurance provider. Ask whether the home security device you're considering qualifies for a discount, and take the opportunity to explore other potential savings.

You might be eligible for discounts by bundling your home and auto policies, enrolling in paperless billing, or making home improvements like installing a new roof.

Make it a habit to review your insurance coverage annually to ensure it still fits your needs — and that you're getting all the discounts you qualify for.

If you're considering bigger home improvement projects, that could qualify for bigger discounts. Spring is a great time to tap your home equity to get those projects funded.

Use your tool below, powered by Bankrate, to see what kind of home equity rates you can get right now:

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You may be wondering when it is appropriate to start shopping around for a new insurance policy. There is a right time — and, yup, there is an absolute wrong time. Let’s go over all of this so you can know when to take your policies to market, or not.

Here are four reasons it might be time to shop for a new policy.

1. Your premium increased significantly

I know that the first thing that goes through most folks’ minds is, when your insurance premium increases, it is time to shop for new insurance. While this can be true, everyone has to have a reasonable threshold before they start looking around for a new insurance company to partner with.

When is it enough is a truly personal choice. If your premium goes up $1, would you stop for a cheaper policy? What about $100? $500? $1,000? Rather than looking at the dollar amount, or even a percentage increase, look at how it may or may impact your bottom line.

If the amount is money you could have missed, then leave it be and move on. If it’s an amount that will force you to have microwave noodles for dinner rather than a well-balanced meal, then maybe it is time to see what options are out there.

2. You’re getting poor customer service

Did you recently call your insurance company, agent or broker with a question and find yourself in an endless loop of menus and unanswered voice messages?

While the availability of insurance products varies from state to state, and some areas are pretty tough to get a policy altogether, that doesn’t mean that you can let people off the hook for poor service. Look around for alternatives, whether it be your personal representative or the insurer behind them.

3. The policy terms changed or no longer suit your situation

Insurance policies are contracts, and they renew. That means that the terms you have now may not be the same when the policy expires. If you find that the terms of your policy have materially changed enough that they no longer suit your needs, time to move on.

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Although many insurance policies have a similar foundation, the details can be quite different. Where coverage may exist under certain circumstances with one company, another may directly and specifically exclude a loss of that type.

The insurance policy may have been an ideal fit for you 10 years ago when you purchased it. However, upon reviewing it now, you may find it is far from what you need.

4. You encountered a difficult or unsatisfying claim process

It may turn out that you had a pretty lousy experience when filing a claim with your insurer. Maybe the claims adjuster was a jerk, or the time it took to get things done was longer than you feel it should have been, or even worse, the insurer did not cover something you felt was within the policy terms. This is a very common time for people to start shopping around.

Why this is the worst time to shop around

Unfortunately, as common as this scenario is, this is the absolute worst time to go looking for new insurance. Here’s why.

You may have had the same insurance policy for decades and never filed a claim until now. While the claim is in process, the insurance company is doing what they do — checking on the damage, figuring out what is covered and what is not.

While your claims adjuster is walking that fine line between meeting your expectations and following the policy you purchased, you may say, “Well, enough of this, I’m going elsewhere.”

Any insurance company will not see you as a person who had been claim-free for years. Instead, they will see someone who just had a claim and are now looking to jump ship during the process.

You are inadvertently showing off your worst self, and it’s a double whammy:

• First, you are someone who has suffered a loss — certainly not the ideal client to an insurer.
• Second, if you’re looking to switch insurance companies with an open claim, it draws into question if that claim is being covered, or if you plan to try to file it with a new insurer with the hopes of a different outcome.

No matter how you crack it, post- or mid-claim are the absolute worst times to shop.

So when is the best time?

You may be wondering, then, when is the best time to shop around? The answer may surprise you. Unless there has been an astronomical event, be it a claim failure, price increase or change in policy terms, the majority of the time it is better to just stay put.

Yes, you read that right — just don’t shop. Unless there is a compelling reason to switch insurers, you may find that the yourself out of the frying pan and into the fire. After people shop for insurance, they typically end up just as unhappy as before, or sometimes more unhappy since they had to go through the process.

If you’re determined to shop around, the best circumstances are:

• When you haven’t had any claims
• When your driving record is clean

This is when you would look to an insurer like a good risk to take.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Weather can take a toll on your home and lead to expensive repairs. Home insurance helps protect your property when disaster strikes, but that doesn't mean it'll cover everything that happens, and you don't want to file a claim if you can avoid it.

Most insurers exclude damage caused by neglect or improper maintenance. For example, if a roof suffers water damage and your insurer notices clogged gutters, the company might pin the damage on a lack of maintenance and deny your claim.

Each year, about one in 35 insured homes experiences a property damage claim related to wind or hail, and one in 60 insured homes files a claim for water damage or freezing, according to the Insurance Information Institute.

These nine home hardening projects are things you can do yourself over a weekend or hire a pro to handle for you, and they can help safeguard your home from the elements. This will lower the risk of needing to file a claim in the first place and increase the odds of a claim being approved if you do need to file one. As an added bonus, some of these projects might also help lower your home insurance premiums.

1. Seal windows and doors

Drafty windows and doors can drive up your home heating and cooling costs, and leaks and water intrusion can damage your home's interior. Fortunately, sealing windows and doors is a pretty easy DIY weatherproofing project.

To start, use caulk to fill in any gaps between your window frames and walls. Caulk can create a finished look to the space, and if you choose a paintable latex caulk, you can always paint over it.

Next, install weatherstripping along the bottom of doors and windows where gaps occur. You can choose several different types of weatherstripping, including adhesive-backed products that are simple to install. Make sure the weatherstripping is the right width for the space and that it compresses when you close the window or door.

If you have older, single-pane windows, caulking the framing might not be enough. In the long term, replacing those older windows with double-pane ones is a great energy-efficient upgrade. Until then, an affordable and easy way to minimize heat loss through your windows is to use a sheet of heat-sealed plastic.

It's kind of like the Saran Wrap you'd use to store leftovers in the fridge. You stick it to the window frame and then blow on it with a hair dryer until it shrinks to create an airtight seal. Come spring, you can simply peel it off.

2. Find and seal other sources of air leaks around your home

Your windows and doors are the usual suspects. But there are plenty of other less obvious air leaks around your home that can make it feel drafty even with the most well-insulated doors and windows.

To find those leaks, start by inspecting the exterior of your home for small holes and cracks. As you find one, seal smaller gaps and cracks with caulk and fill larger ones with expanding spray foam.

Next, do the same inside your house. Some common culprits include the attic hatch, recessed lighting, baseboards, light switches, outlets, plumbing connections and exhaust vents (such as the one coming from your gas furnace or fireplace).

3. Install gutter guards

Clogged gutters can cause ice dams, roof damage and foundation issues. If water overflows the gutters and runs down the side of your home, it can also damage your siding.

Gutter guards can help prevent clogs and save you time on gutter cleaning and maintenance. These systems are usually easy to install, too. The Gutter Guard by Gutterglove can be screwed or taped onto your gutters, and it prevents debris such as leaves and sticks from getting stuck.

Be careful about accessing the gutters. Always take precautions when you use a ladder, like having a second person present. If you're not comfortable with accessing the gutters or don't have someone around who can spot you, you should hire a professional to do this work. Your safety is always key.

Most insurance companies don't offer discounts for gutter guards, but weatherproofing your home with gutter guards can help prevent damage to your roof.

4. Insulate your plumbing (indoors and outdoors)

You can usually find pipe wrap or rolls of foam pipe insulation at a home improvement store such as Lowe's or Home Depot. Wherever pipes are exposed to unconditioned air — think plumbing in the attic, crawl space or garage — you want to wrap them in foam insulation.

This can prevent freezing in the winter, but it can also make your hot water system more efficient by minimizing heat loss as the heated water travels through your pipes.

5. Clean or replace air filters

A dirty filter isn't just bad for your air quality: It also makes your HVAC system work harder to pull air in and heat (or cool) your home efficiently.

Most filters need replacing every three months or so. Even if your system has reusable filters, they should still be cleaned about as often. Basically, that means cleaning or replacing them whenever the seasons change.

6. Make sure your sump pump works

A sump pump can help prevent basement flooding, but only if it's clean and functioning properly. You don't want to find out it's not working in the middle of a storm.

To start, unplug the pump so there's no power going to it, then remove any dirt or debris on the pump itself or in the opening around it. Once clean, plug it back in and pour a bucket of water into the sump pump area to make sure it kicks on when it's supposed to.

If it doesn't, you might need to repair or replace the pump. For simple repairs (such as swapping the float switch), it'll be easy to do yourself. For a complete replacement or more complicated repairs, you might want to hire a plumber.

Even if your sump pump works fine, consider adding a battery backup if it doesn't have one. If the power goes out in a storm, you want your pump to have an alternate power source so it can keep doing its job.

For example, the Basement Watchdog Sump Pump System has a battery backup that features 24-hour monitoring and alarms that can alert you to problems with power conditions and other issues. The battery backup ensures the pump stays operational during power outages, so your basement stays dry.

Home insurance usually won't cover damage caused by sump pump failure or overflow. You can add on water backup coverage for extra protection, but buying a sump pump with backup power might help you avoid having to file a homeowners insurance claim and pay your deductible.

7. Secure loose fencing and other outdoor items

Flying debris can damage your home, windows, vehicles and other structures on your property, and damage caused by flying debris is a common source of home insurance claims.

This includes such things as loose fencing, trash cans, patio furniture, trampolines, playsets and other common backyard items. Not only can they be blown around in a storm, but they also wear faster if left out to be exposed to the elements.

For the sake of your home and the outdoor items themselves, store them in your garage or in a shed for the cold season. For things that can't be stored (such as your fence), take the time to secure any loose parts. That might mean replacing rotting fence boards or reinforcing pergolas to make sure they're securely attached to the ground.

For larger items that aren't already securely attached to the ground, such as raised garden beds or fire pits, consider using tie-down kits. These are basically straps and stakes that you can use to strap your outdoor decor to the ground, holding it in place during bad weather.

8. Upgrade roof anchors or shingles

Minor upgrades to your roof might lower your home insurance premiums. Roof repair costs can range from $150 to $8,000, and roof replacements can cost even more, according to This Old House.

There are several affordable, DIY-friendly ways to upgrade your roof. Applying a sealant to your shingles can help protect them from moisture and UV rays, prolonging their lifespan and helping them to better protect your home.

Remember to follow safety protocols for any project that requires a ladder and roof access. If you're not comfortable with this work, you can hire a local handyman to do it.

As a more involved project, if you're in a location that often sees hurricanes and strong winds, installing hurricane clips can help reinforce and stabilize your roof. These clips attach your roof trusses or rafters to the walls of your home, helping secure the roof to prevent it from being lifted off of your house during extreme winds.

Hurricane clips are best installed by a professional, and a roofing expert can help identify the appropriate types of clips and placement for your home. Familiarity with local building codes is also important.

9. Keep up with winter tree pruning

This is an often-overlooked task but an important one for protecting your property. If you have any trees near your house, your garage or your fence, get a licensed, knowledgeable arborist — not just a tree trimming service — to inspect the trees around your property.

Weak limbs or new growth that's too crowded have the potential to break off in a storm or even on a windy day. Getting these risky limbs removed annually, especially in winter when pruning is less stressful on trees, can improve the overall health of the tree and reduce the risk of falling limbs damaging your property.

If you're handy with a chainsaw and the trees aren't too large, you might be able to do this task yourself. Make sure you look up proper pruning techniques. Cutting a limb in the wrong place (or at the wrong time) can make your tree vulnerable to disease or trigger the growth of weakly attached new limbs.

Additional ways to save on home insurance

These weatherproofing projects might qualify for insurance discounts, helping you cut home insurance costs without losing coverage.

Insurance companies often offer discounts for other upgrades, too, like for installing a new roof or buying a monitored home security system.

To maximize your savings, contact your insurance company and ask about available discounts that can lower your home insurance premiums. Update the insurance company when you’ve completed your upgrades, too.

Looking to save on home insurance? Use the tool below to explore some of today's top home insurance offers:

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Everywhere across the country, we are seeing natural disaster after natural disaster. Wildfires out West and tornadoes and flooding in the South, and hurricane season is coming soon. After each of these events, many of us get to deal with our insurance company and, by extension, a claims adjuster.

Here are the top three things your claims adjuster says to you and what they are actually thinking.

1. After a fire

You are evacuated due to a massive fire heading your way. You hole up at a hotel and await finding out your home’s fate. Sadly, not much is left once the flames are extinguished. Your first conversation with your insurance company’s claims adjuster may go like this:

You: I’ve lost everything! I can’t believe this. I need you guys to get busy rebuilding my house, like tomorrow. Just wire me my policy limits for everything. Seriously, the fire is out, let’s get the ball rolling so I can get my house back before everyone else starts hiring the good contractors.

Claims adjuster: I am so sorry for your loss. Let’s start the process, gather the information we need, get you some money right away so you are as comfortable as possible and move forward from there.

What the claims adjuster is thinking: Poor fella. Everything is gone. But start rebuilding your house tomorrow? Dude, the place is still smoldering, and it is going to take 12 to 18 months before all of the debris removal is completed and the toxins are gone. I can’t just write a check for everything — the policy has requirements for things we both have to do. Take a breath, you’re alive and have a policy — you’re much better off than some. And don’t worry, there will be plenty of contractors fighting to get money from us to rebuild your place.

2. After a storm

Toto, I’ve a feeling we’re not in Kansas anymore. A tornado destroyed your house. It’s going to take a lot of money to rebuild it.

You: Can you believe this weather? Like, out of nowhere, this tornado moved in and basically ripped apart half of my house. I barely escaped. Have you seen the house? I don’t want to live there anymore. Just write me a check and take the house. You can have it.

Claims adjuster: I am so sorry for your loss. It must be very emotional to have just barely escaped the storm. Let’s see what options are available for you under your insurance policy.

What the claims adjuster is thinking: No, you can’t have the money from your policy meant to rebuild your home and just hand your home over to us. You have a loan on that house, remember? I don’t think your bank would be very happy to see you walk away from it and take your insurance proceeds.

3. After a flood

It’s pouring cats and dogs. Not just a lot of rain, but the kind of rain that you can’t even see through, day after day after day. Then water makes its way up your driveway and starts coming under your front door. Soon, your home isn’t under water, but the water is in your home, from the bottom up.

You: My house is effectively a large swimming pool. The water level has risen above the couches, above the beds, and even some of my wall shelves are wet. I wouldn’t be surprised to see water shooting out of the chimney. I’m glad I have my homeowners insurance policy to pay for all of this.

Claims adjuster: That sounds absolutely horrible. I am so, so sorry to hear this. Unfortunately, flood damage is specifically excluded from your homeowners insurance policy. The policy lists in Section I – Exclusions, “We do not insure loss caused directly or indirectly by flood, surface water, waves, water backup, water below the surface.” This type of coverage would be covered by a Flood Insurance policy, available from FEMA or an insurance agent or broker. Would you like information for the Small Business Administration on obtaining a loan to fix your damage?

What the claims adjuster is thinking: So apparently you’ve never read your insurance policy. The first section under exclusions is literally labeled “Flood.” It’s right there. And don’t get irritated at me — I didn’t write the policy.

So what can we learn to do (or not do) from these exchanges?

• Keep your expectations realistic when it comes to what your insurance company can do and how quickly.
• Understand the limits of what your insurance does. Insurance policies are indemnity policies, meaning they are designed to put you back to the way you were before the loss. If that meant you had a house, then rebuilding that house. They are not designed to cash you out.
• Read your insurance policy so you know what’s covered and not covered.
• Don’t take your frustrations out on the claims adjuster — they’re just doing their job.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Homeowners insurance can protect you against a wide range of risks, but not everything is covered. That’s a problem as severe weather becomes more common and costly.

The 2025 Atlantic hurricane season, for example, has already produced nine named storms — four hurricanes, including three major systems with winds over 115 mph. While the U.S. mainland has so far avoided major landfalls this fall, experts warn that even late-season cyclones can deliver destructive winds and flooding.

Yet many of the disasters homeowners fear most — from flooding to earthquakes to sewer backups — usually aren’t covered by a standard policy. Here are six common disasters that could cost you thousands if you don’t plan ahead.

Natural disasters not covered by home insurance

While hurricanes, floods and wildfires dominate the headlines, those aren’t the only costly events that can damage your home. And many of them fall outside the scope of a standard policy. The following are six

Flooding

Flooding is one of the most common disasters homeowners face — and it’s not covered by standard home insurance. Whether caused by heavy rain, melting snow, overflowing rivers, hurricanes or tornadoes, flood damage requires separate coverage through the National Flood Insurance Program (NFIP), administered by FEMA. You can purchase this coverage through your insurance provider.

If you're questioning whether flood insurance is worth it, consider this: just one inch of water in your home can cause up to $25,000 in damage, according to FEMA. Keep in mind that there’s also a 30-day waiting period before flood insurance takes effect.

Earthquakes aren’t covered by standard policies either. If you live in a region prone to seismic activity, you’ll need a separate earthquake policy. Other natural disasters often excluded from homeowners insurance include landslides, sinkholes, and in some cases, wildfires.

Review your policy carefully — especially if you live in a high-risk area — to make sure you have the protection you need.

Explore and compare some of today's top home insurance offers with the tool below, powered by Bankrate:

Sewer or sump pump backup

Flood damage caused by sewer or sump pump backups isn’t covered by standard home insurance — or by flood insurance. While many homeowners understand they’re responsible for their sump pump systems, fewer realize they’re also on the hook for the sewer lines that run from their home to the city’s main system.

Sewer backups can cause thousands of dollars in damage — not just to flooring and personal belongings but also to electrical systems, which can be costly to repair.

To protect against this type of damage, you’ll need to purchase sewer or sump pump backup coverage, either as a policy add-on (endorsement) or a separate policy altogether. Costs typically range from $50 to $350 per year, depending on your chosen coverage limits.

Damage caused by lack of maintenance isn’t covered

Homeowners insurance is designed to protect against sudden and unexpected events — not gradual wear and tear. If damage to your home is determined to be the result of neglect or lack of maintenance, your insurer won’t cover the cost of repairs.

That means problems like mold, termite damage or infestations from rodents or insects typically aren’t covered. The same goes for issues caused by delayed upkeep, such as leaky roofs, rotting wood or plumbing problems that could have been prevented with routine inspections and maintenance.

In the eyes of insurers, these types of issues are preventable and the homeowner’s responsibility. To avoid costly repairs — and denied claims — stay on top of regular maintenance and address small problems before they escalate.

Injuries on your property might not be fully covered

While most homeowners insurance policies include liability coverage for injuries, there are exceptions — especially when the injury is linked to poor maintenance or higher-risk features on your property.

For example, if someone is hurt due to a broken step or loose handrail, your claim could be denied if the damage was deemed preventable. Similarly, trampolines, swimming pools, and even treehouses are often considered attractive nuisances — features that carry added risk and may be excluded unless you’ve added specific liability coverage.

If you have any of these extras, it’s a good idea to review your policy and talk to your insurer about umbrella insurance or personal liability endorsements to make sure you're fully protected. The cost for additional coverage can vary significantly based on your risk level and the features involved.

Valuables like jewelry or collectibles may be underinsured

Your homeowners insurance policy likely includes personal property coverage, but it may not be enough to fully protect high-value items such as jewelry, fine art, antiques or collectible items if they’re lost, stolen or damaged in a covered event.

Standard policies often impose limits on payouts for certain categories — for example, you might only be covered for up to $1,500 for stolen jewelry, regardless of its actual value.

To ensure full protection, you’ll need to schedule these items through a rider or endorsement, which provides coverage based on appraised value.

The cost will depend on the items you’re insuring and their total worth, but it can be a small price to pay for peace of mind.

Additional deductibles for named storms

If you live in a coastal state, it’s important to know that damage from named storms like hurricanes and tropical storms often comes with a separate deductible.

According to the National Association of Insurance Commissioners, these deductibles typically range from 1% to 10% of your home’s insured value, though some may be a fixed dollar amount. This added cost applies in 19 states and the District of Columbia, where insurers either require a specific endorsement or a separate policy to cover named storm damage.

Here are the states where this applies:

• Florida
• North Carolina
• South Carolina
• Georgia
• Virginia
• Texas
• Mississippi
• Alabama
• Louisiana
• Hawaii
• New York
• New Jersey
• Pennsylvania
• Massachusetts
• Maryland
• Rhode Island
• Delaware
• Connecticut
• Maine

You’ll notice that most of these states are prone to hurricanes, so insurers may not allow homeowners to buy this coverage within one to two days of a hurricane or other major severe-weather event.

The reason for the separate deductible stems from Hurricane Andrew in 1992, although they became more common after Hurricane Katrina, which caused more than $64 billion in insured losses.

Review Your Coverage Regularly

In general, any damage that exceeds your policy limits won’t be covered, which is why it’s important to review your homeowners insurance annually. Make sure your coverage is sufficient to fully replace your home and belongings in the event of a disaster.

Even if nothing has changed in your situation, it’s still a good idea to check your coverage levels. Inflation and rising construction costs have significantly increased the price of materials and labor in recent years, which means you could be underinsured without realizing it.

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The damage an earthquake can cause to your home really seems like something that home insurance would cover, but many insurance companies stopped covering earthquakes in the 1990s, according to FEMA.

As a result, only a fraction of homeowners living in earthquake-prone areas are covered. California, for example, experiences 90% of all the earthquakes that happen in the United States. Yet, just 13% of the state's residents have earthquake insurance.

California isn't the only state where earthquakes happen. According to the National Association of Insurance Commissioners (NAIC), there is some risk of an earthquake in 42 states. The risk is higher in some states compared to others, but shopping for home insurance that includes earthquake coverage isn't just for Californians.

Does home insurance cover earthquakes?

Standard home insurance usually does not include earthquakes or other land movements, like landslides.

You need to add an earthquake insurance policy, which often covers any damage that results directly from the earthquake itself or its aftershocks, but not damages that would be covered by your standard home insurance.

Here's a breakdown of what a typical earthquake policy might include:

• Earthquake insurance covers damage to the insured property that directly resulted from the ground shaking. That might include things like a cracked foundation, crumbling exterior or belongings that broke as a result of falling during the quake.
• It may also cover your living expenses if you can't live in your home while it’s being repaired, up to a specified limit.
• For repairs of covered damage, the policy will also typically cover the cost of building code upgrades and emergency repairs.
• Damages caused by aftershocks within about 72 hours of the initial earthquake can usually be lumped together into a single claim (with a single deductible).
• For renters, the coverage only applies to your personal property, not to the building itself. You may also be able to add loss of use coverage to pay for any living expenses if you have to move out while the landlord makes repairs.
• Earthquake insurance does not cover damage from disasters that might be triggered by an earthquake, like fires or water damage resulting from a water pipe that burst during the quake. For those, you’d file a separate claim with your standard home insurance.

You'll usually see a deductible of between 2% and 20% of the total insured value. The higher the deductible, the more you agree to pay out of pocket if an earthquake damages your home.

You might even see separate deductibles for separate types of coverage, such as the house itself, your belongings inside and any separate structures outside.

Which states are most likely to have earthquakes?

According to the U.S. Geological Survey, 16 U.S. states have an above average risk of experiencing an earthquake:

• Alaska
• Arkansas
• California
• Hawaii
• Idaho
• Illinois
• Kentucky
• Missouri
• Montana
• Nevada
• Oregon
• South Carolina
• Tennessee
• Utah
• Washington
• Wyoming

The likelihood of an earthquake varies considerably among those states, with states west of the Rockies, especially California, having the highest risk.

But states in central and eastern parts of the United States face their own unique risks: earthquakes are less common, but when they do happen, they tend to spread out further from their epicenter and houses are less likely to be built to withstand the shaking.

If you live in any of these states and you don't currently have earthquake insurance, it's time to start looking into your coverage options.

In some cases, you may be able to simply add the coverage to a standard home insurance policy. If that’s not an option, you’ll have to buy separate earthquake insurance.

Which states are least likely to have earthquakes?

While it's still worth looking into your regional risk of an earthquake, even if you don't live in one of the 16 higher-risk states, there are a few states in the U.S. where earthquakes are very unlikely:

• Florida
• Iowa
• Minnesota
• North Dakota
• Wisconsin

If you live in one of these states, you can probably skip earthquake insurance. Though, it's still worth looking into other types of land movement coverage like landslides or sinkholes – both of which are also surprisingly not covered by standard home insurance.

How much does earthquake insurance cost?

A typical earthquake policy will cost between $0.50 and $15 per $1,000 of coverage, according to the Insurance Information Institute.

So for $300,000 worth of coverage, you might see a quote ranging from $150 up to $4,500 depending on where you live, the type of home you live in, what kind of coverage you want and other factors.

In California, you can expect to see the highest premiums, with earthquake policies costing above $1,300 per year on average, according to Lending Tree.

In Texas, you can expect to pay between $500 and $800 per year for earthquake coverage. On the East Coast, premiums are typically cheap, averaging around $300 or less.

One way to lower your premium is to increase your deductible. If you live outside of California, where earthquakes are a risk but far less likely, opting for a higher deductible can be a good compromise.

You'll keep your premium down, but still have coverage in the event of a once-in-a-lifetime disaster.

Another way to save is to have your home retrofitted. Seismic retrofitting involves things like installing bracing and bolting around your home’s frame and foundation to make the structure more resistant to earthquake damage.

This can not only lower your premium but also decrease your risk of experiencing serious damage during an earthquake.

Does renter's insurance cover earthquakes?

Not a homeowner? Even if you rent, earthquake insurance could still be a necessity. Like home insurance, standard renter's insurance policies exclude earthquake damage.

If your landlord has earthquake insurance, that policy only protects the building itself, not your belongings.

So, if you're renting in one of the higher-risk zones identified by the USGS, you should look into both renter's insurance and earthquake coverage to make sure you're fully protected.

Since you're not paying for coverage of the building itself, you can usually get earthquake insurance for much less than a homeowner would pay.

Is earthquake insurance worth it?

Home insurance isn't cheap (especially if you live in one of the eight states where premiums are highest) so if you're hesitant about spending even more to add earthquake insurance, you're not alone.

But the potential savings if you do have an earthquake can make that extra cost worth it if you live in one of the states where earthquakes are possible.

According to Home Advisor, the average cost to repair earthquake damage ranges from $5,000 to $25,000. Even if you live in one of the lower-risk states, the savings from a single claim could more than make up for years of premium payments.

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In recent months, we have all been witness to the wildfires, tornadoes and floods that have torn through cities and rural areas across our country.

As so many property owners are learning, time does not heal all wounds, especially those inflicted on them by some — not all — insurance companies attempting to avoid or minimize payments through sneaky and dishonest claims-adjusting practices, such as lowballing loss values.

If anyone doubts that statement, then I recommend doing a Google search on: property damage undervalued by claims adjusters.

“Guy,” a longtime reader and claims adjuster for a regional homeowners insurance company, told me in a video chat, “This is a time when the power difference between management and claims people in the field becomes evident. We were told in meetings, ‘If you want to keep your job, write loss reports the way we tell you and to hell with accuracy.’” Guy requested anonymity so he could speak candidly.

He showed me photos of an insured’s damaged home, his original repair estimate and the “revised final estimate” from management. “They are ripping off the insured, and just as soon as these jobs are done, I am out of here,” he said.

What to do if your insurance company isn't playing by the rules

The question that frustrated property owners often ask is, “What can I do — who should I hire — if my own insurance company is not responsive, or it appears that I am being jerked around? Should I retain an attorney or a public adjuster?”

When you’re faced with this choice, it could very well be one of the most important financial decisions you make when your life is turned upside down.

I ran this important question by Los Angeles-based independent insurance broker Karl Susman, who writes articles for Kiplinger.com and is a CBS News consultant.

Additionally, I spoke with John Petrov, a public adjuster based in Diamond Bar, Calif., who explained the role of a public adjuster (PA).

“All claims adjusters have the same job,” Petrov said. “Those who work for insurance companies try to minimize the payment of claims, while public adjusters work for the person harmed. A PA’s job is to handle your claim correctly and honestly and help you obtain everything you are entitled to, not to cut corners in order to keep the boss happy.”

In my law practice, I’ve known many PAs who worked for large insurance carriers, became disillusioned by shady claims practices, went out on their own and, as I heard repeatedly over the years, “It just felt good, as I was really helping someone for a change.”

Greatest risk you now face: Being pressured into signing a contract

I asked Susman and Petrov: After living through a natural disaster — seeing your home, business, all the things that have meaning in your life just disappear — what is the greatest risk you now face?

Petrov replied, “Allowing yourself to be pressured into signing up with someone who just appears out of thin air, promising to handle the claim.”

He underscored: “That’s how PAs get a bad reputation. Never hire a public adjuster who just shows up and hands you a contract. You are vulnerable.”

Susman agrees: “There may come a time when you will need a PA, but never select one who is looking for you. Stay local, as you should for attorneys, and referrals from trusted sources are important.

“Remember, unlike your insurance company’s claims adjuster, who is paid by them, you are giving a percentage of the money your insurance company pays on the claim to the PA. Take your time and research that person and their company before signing.”

What to keep in mind if you have a claim

Susman and Petrov provided these tips to try to make the process of filing a home insurance claim less intimidating:

• Promptly file the claim with your insurance company. Policies contain time limits for filing claims.
• While it is certainly appropriate to schedule a consultation with an attorney, generally there is no reason to run up attorney fees at the beginning of the claims process. “However, if you are asked to give a statement under oath, hire an attorney for that,” Petrov stressed.
• Allow the claims process to proceed normally. If it appears that, even after speaking with a claims supervisor, you’ve hit a brick wall, then it is time to speak with a PA.

Take your time when considering offers

With large losses, clients tend to feel a sense of urgency. They need money as soon as possible to begin putting their lives back together.

Therefore, beware of rushed, lowball offers and pressure to accept them, especially after a natural disaster.

That is what often creates the need to hire a PA. And, yes, you will pay their fee (which varies by state), but the net result could be much better.

If you want to learn more about this and other insurance topics, both Petrov’s website and Susman’s website have highly useful information.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

From a natural disaster standpoint, the past few years have been off the charts, including:

• Wildfires caused extensive damage in Los Angeles and on the island of Maui
• Hurricane Ian destroyed a large swath of Florida
• Hurricane Helene left a trail of destruction through North Carolina
• Multiple tornado outbreaks hit the central and Midwest regions of the country

Even now, flooding is devastating parts of the Midwest and South.

In 2024 alone, the United States suffered 27 natural disasters that each caused more than $1 billion in damage.

That’s devastating to the people in the disasters’ paths — and their finances. Not only do they face the obvious expenses associated with disaster recovery, they’re also discovering that bills for homeowners insurance can be a long-term — even permanent — hit to the wallet.

Soaring insurance premiums and fewer providers

One of the largest insurers in the country, State Farm, reported it lost $4.7 billion on its homeowners insurance business, which was a significant chunk of the $23 billion in losses the industry as a whole reports over the last five years.

Such reported losses are causing sharp increases in insurance premiums nationwide, even in states we don’t ordinarily associate with major natural disasters, such as Colorado and Minnesota.

My own clients have complained about their insurance premiums skyrocketing even though, here in Silicon Valley, we are far away from the wildfires that caused so much destruction in Los Angeles.

Even worse, for those in states that are common sites of headline-generating disasters like hurricanes, earthquakes and wildfires, some companies are withdrawing from the homeowners insurance market entirely.

That leaves people in states such as Florida and California scrambling to find coverage and increasingly failing to do so.

It also leaves a system known as “insurers of last resort” — state-run insurance programs designed for people who can’t get private coverage — as their only option. The trouble is, such last-resort options are generally much more expensive than private insurance.

Many who can’t find or afford coverage are forced to take the risk of going without if they can. If they still have a mortgage, that’s generally not an option because the terms of the loan require the home to be insured.

Should a homeowner not obtain coverage of their own, the bank will exercise an option called “force-placed” mortgage insurance and bill the homeowner for the premiums.

That’s a risky option: Under a force-placed policy, the homeowner is not the insured; the bank is. This means that, should a disaster destroy the home, the bank will be made whole, while the homeowner will receive no compensation.

How to cut the cost of homeowners insurance

When premiums are on the rise, it’s important to assess your coverages: Don’t just ask, “Do I have enough?” but rather, “Do I have too much?”

It will not be a surprise that insurance agents who receive commissions for selling insurance products will often be more than happy to sell you coverages you don’t actually need, while it’s also possible to have coverages you needed when you signed up, but no longer do.

For example, if you sell a boat that is insured and fail to inform the insurance company that you no longer own it, you will keep paying to insure it unnecessarily. The same applies to other possessions which may be separately insured with riders, such as jewelry and art.

Once you’ve cut out unnecessary policies, if your premiums are still too high, consider increasing your deductible. If your deductible is currently $500, upping that to $5,000 will likely save you money on your premiums. However, make sure you increase the amount in your emergency fund so you can cover the higher deductible should it be necessary.

Insurance has always been complicated, but perhaps never more so than in the age of almost-routine billion-dollar natural disasters.

It’s important to work with your financial adviser to get a second opinion on whether your insurance coverages are appropriately sized for your unique circumstances.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You may have noticed a trend that is making it more difficult and more expensive to insure your home. So what is up with homeowners insurance? Why is it getting so difficult to buy, and why is the price going up, up, up and away?

Homeowners insurance — or property insurance, as those of us in the industry also refer to insurance that encompasses homeowners insurance, condominium owners’ policies, landlords’ policies and renters’ policies — is seeing a titanic shift that we are all feeling.

Ready? Set? Climate change!

Whether you believe climate change exists or not, what isn’t in dispute is that the insurance industry is seeing more frequent and bigger claims across our great nation because of weather, wildfires and other natural disasters.

We have tornadoes, floods and hurricanes in the South; tornadoes, earthquakes, blizzards and floods in the Midwest; wildfires, dust storms, floods and earthquakes in the West; and hurricanes, nor’easters, blizzards and wildfires in the East.

Oh, and let’s not forget volcanoes erupting in Hawaii and possibly Alaska, landslides in California and droughts that come and go all over the U.S.

And the disasters are more frequent than ever

Would it surprise you to know that these events are more and more frequent? Not only that, but when they occur, they are packing a stronger punch.

Don’t just take my word for it — check in with the National Oceanic and Atmospheric Administration. You can find the same frightening information over at the World Meteorological Organization sounding the alarm.

It is happening, people, like it or not, believe it or not. It reminds me of a T-shirt I saw once that said that science doesn’t care what you believe.

Here are some startling numbers, courtesy of the Insurance Information Institute:

Losses paid from catastrophes in 2004-2013: About $65 billion ($104 billion in 2025 dollars).

Losses paid from catastrophes in 2014-2023: $773 billion. Yes, that’s more than seven times the losses in 2004-2013. What’s more, $320 billion of those losses happened in 2017-2023 alone.

See the trend? Up, up, up, more, more, more!

How this translates to more expensive insurance

If your insurance company is paying more money, your premium is going to be higher. They need your money to pay claims when they come, after all. So more claims and more expensive claims mean higher premiums for us all.

Paying more for insurance is a double whammy. One, we have to pay more out of our pockets for the protection that we need. Two, we’re all experiencing more losses — and significantly more damaging ones at that.

Keep your eyes open for ways to protect your home, because the only thing we can do to try to keep our premiums down is to lower the risk of having a loss in the first place.

To find out how to protect yourself from losses caused by disasters, see the Kiplinger article How to Protect Your Home from Natural Disasters With the Right Insurance.

That article also includes information on how to prepare your house to withstand anything that nature can throw at it, often referred to as home hardening, a process that could get you a break on your home insurance premiums.

And, finally, check out today's article Home Insurance: How to Cut Costs Without Losing Coverage for tips on keeping your costs down without dropping your insurance.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.