3. Homeowners Insurance
Indeed, homeowners insurance isn’t surprising at all taking into consideration that most banks and mortgage companies often require it before issuing you a loan, and the premiums may even be included in your mortgage payments (if your lender helped you get the policy).
However, keep an eye on those premiums—they rise annually. Also, check what your policy doesn’t include, because, in general, homeowners insurances don’t cover “acts of God.” This actually means that you’ll have to purchase extra coverage against certain natural disasters like floods, hurricanes, and earthquakes.
Wait…there’s more: this extra insurance can be quite expensive or it might have an unusually high deductible. For instance, separate flood insurance is between $1,000 and $4,000 per year over and above the $500 to $1,000 a year that most homeowners typically spend on their basic home policies.
