Homeowners Insurance – Part of the Full Cost of Home Ownership
Homeowners Insurance – Part of the Full Cost of Home Ownership
Shortly after my husband I and got married, he joined the military. While we were excited for this chapter in our lives, we were particularly excited about the prospect of purchasing homes in different places we were stationed. Our first duty station was in Colorado, where we found and purchased the absolute best house. With the house already being the biggest purchase of my life, I didn’t consider all the additional expenses that came with home buying, like homeowners insurance.
With very little knowledge of insurance, I took on the responsibility of finding homeowners insurance. After what seemed like a hundred phone calls and hours of research, I found a company and policy that best suited our needs. When we found out we were moving to Virginia, we immediately knew we wanted to purchase a second home. Having learned from the first home purchase, I immediately began calling and asking about hypothetical quotes for the area, size, and cost of house we were looking for. While those quotes were by no means accurate, they gave me a ballpark figure for what to expect. So, after finding another perfect home, we were able to better budget monthly homeownership expenses, making the experience and our month-to-month living much more comfortably.
This is me and my husband in front of our new home in Virginia!
MilSpouse Money
Mission Response:
Congratulations on your home purchase in Virginia, Heather! Finding the best housing situation is not an easy process! There are many factors to consider which will likely change from one duty station to the next.
A major purchase, like a home, includes much more than the mortgage payment, as Heather discovered. The total cost for housing includes rent or mortgage, utilities, insurance, taxes plus maintenance and upkeep costs. Financial experts recommend limiting your total housing expenses to 25% of your gross income or your Basic Allowance for Housing (BAH). Check out Five Rules of Buying a House and Leasing vs Buying before you start shopping so you can be as informed and prepared as possible.
Homeowners insurance is a critical component of risk management for your financial life. An insurance policy is a contract between you and the insurance company to provide financial protection against losses described in the policy. Visit our Insure Your Family page for a high-level insurance overview and our Home Insurance Handout has specific information about premiums and types of coverage.
