| Photo from larkinfarrell.com via Steve Derodar
In an era of rising climate risks, economic uncertainty, and increasingly high-value properties, homeowners’ insurance has become more vital than ever. Whether you own a suburban house in California, a condo in New York, or a beachside villa in Asia or Europe, ensuring your property is no longer a matter of luxury—it’s a cornerstone of responsible ownership. As disasters strike more frequently and markets grow more volatile, having the right insurance is not just smart planning—it’s essential.
Homeowner’s insurance is a policy that protects your home and possessions from losses and damages. It typically also includes liability coverage, which shields you financially if someone is injured on your property. In short, it covers what you own and what might happen. However, the quality and extent of coverage can vary significantly depending on your location, provider, and the type of policy you hold.
Most standard homeowner’s insurance policies cover a range of threats. These include fire and smoke, theft or vandalism, weather-related damage such as hail and windstorms, personal liability, and temporary housing if your home becomes uninhabitable. But while these coverages sound comprehensive, they often have exclusions or limits that homeowners must be aware of, especially in areas prone to specific risks.
Recent real-world events serve as sharp reminders of these risks. In the United States, wildfires in California and Hawaii in 2023 destroyed thousands of homes, with billions in losses. Many homeowners found themselves underinsured or denied coverage for wildfire-specific damage. In hurricane-prone Florida, repeated storm damage has caused several insurance companies to exit the market entirely, leaving residents with limited and more expensive options.
Globally, the story is much the same. Venice, Italy, has seen a surge in floods, which have led to skyrocketing premiums for waterfront properties. In Turkey, a massive earthquake in 2023 revealed just how unprepared many households were, with thousands uninsured for natural disasters. Closer to home in the Philippines, Super Typhoons like Odette and Egay exposed another gap—many homeowners had only basic fire insurance, unaware that typhoon or flood protection required additional riders.
“Choosing the right homeowner’s insurance policy requires thoughtful consideration. Ask yourself: What perils are covered? Does your policy include protection against natural disasters like typhoons, earthquakes, or floods? Often, these need to be added separately. Often, these need to be added separately.”
These stories teach us a crucial truth: disasters are becoming more frequent, and the cost of being unprepared is higher than ever. Insurance isn’t just a safety net; it’s a financial recovery plan. Consider these cases: A family in New Jersey received $45,000 after an electrical fire damaged their kitchen. In Metro Manila, a homeowner was reimbursed ₱300,000 for flood-related repairs—thanks to a flood rider. Meanwhile, a homeowner in Japan lost everything to a landslide because their policy didn’t cover earth movement. The difference? The details in the policy.
Choosing the right homeowner’s insurance policy requires thoughtful consideration. Ask yourself: What perils are covered? Does your policy include protection against natural disasters like typhoons, earthquakes, or floods? Often, these need to be added separately. Is your coverage based on replacement cost or market value? The former covers the actual cost to rebuild, which can differ significantly from the market price, especially in hot real estate zones.
Other vital considerations include your deductible—the amount you’ll need to pay out-of-pocket before insurance kicks in. A higher deductible might lower your premiums, but could mean more significant expenses during a crisis. Also, do you live in a high-risk zone? Properties in flood-prone, seismic, or wildfire-affected regions will typically require more extensive (and costlier) policies. Don’t forget to declare high-value possessions like jewelry or artwork, which may not be fully covered under basic plans.
And lastly, never overlook liability coverage. If someone is injured on your property and sues, liability protection can shield you from devastating legal and financial consequences. It’s essential for homeowners who frequently entertain guests, rent out space, or maintain potentially risky features like pools or pets.
As the world changes, so must your insurance strategy. Homeownership today comes with more risks than ever—environmental, economic, and legal. But with the right policy, those risks become manageable. Take the time to review your insurance regularly, especially after home renovations, market shifts, or personal milestones. Partner with a trusted insurance advisor and ensure your policy evolves with your life. Because when the storm comes—literally or figuratively—insurance isn’t just paperwork. It’s your peace of mind.
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ABOUT THE AUTHOR: In New York City, Stevenson is affiliated with Elegran Forbes Global Properties as a Real Estate Advisor and licensed Real Estate Salesperson. Forbes Global Properties is a global network of elite real estate professionals, including brokers, developers, and agents, who specialize in luxury properties. Through Forbes Global Properties, members can connect with affluent buyers and sellers across the globe and showcase their high-end properties on a global stage. Stevenson is a Real Estate Board of New York (REBNY) member and the National Association of Realtors (NAR). Email him at svderodar@elegran.com.
