When Was the Last Time You Read Your Homeowners Insurance Policy?

Let’s be honest—most people don’t think about their homeowners insurance policy until something goes wrong. But here’s the hard truth: homeowners insurance in Vancouver, Washington, is changing rapidly. If you’re not paying attention, you could end up underinsured—or worse, uninsurable. And trust me, I’ve seen it happen firsthand.

As a homeowner, investor, and real estate professional, I’ve had my fair share of experiences with homeowners insurance—from handling claims to watching policies evolve. So, let’s dive into what’s happening and how you can protect yourself and your home.

Why Is Homeowners Insurance Getting More Expensive?

If you’ve noticed your homeowners insurance premium creeping up (or skyrocketing), you’re not alone. Insurance rates are climbing nationwide, and Washington is no exception. Here’s why:

• Rising construction costs – Building materials and labor aren’t getting any cheaper, and insurers are adjusting their policies accordingly.

• More frequent claims – From severe weather events to everyday mishaps, insurance companies are paying out more than ever before.

• Natural disasters – While we might not get hurricanes like the East Coast, wildfires, floods, and the occasional earthquake are real risks here.

• Insurance companies pulling out – Some insurers are simply opting out of certain areas altogether, making it harder (and pricier) for homeowners to find coverage.

What to Watch for in Your Policy?

Not all homeowners insurance policies are created equal, and unfortunately, many people don’t realize they have coverage gaps until they file a claim. Here are a few things to keep an eye on:

1. Rising Premiums

Expect your premiums to increase annually—especially if you haven’t reviewed your policy in a while. Inflation, increased risks, and market conditions all contribute to higher costs.

2. Coverage Gaps

Did you know standard policies often don’t cover water damage from floods, landslides, or certain windstorms? You might need additional endorsements to get full protection.

3. Higher Deductibles

Many insurers are raising deductibles, meaning you’ll be paying more out of pocket before your coverage kicks in. Double-check your policy to see what you’re on the hook for if disaster strikes.

4. Limited Provider Options

With some insurers scaling back in high-risk areas, finding coverage isn’t as simple as it used to be. If you’re in the market for a new home, checking insurance options before making an offer is crucial.

The 22VV Homeowners Insurance Addendum for Buyers

If you’re buying a home in Washington, you should know about the 22VV addendum—an important contingency that allows buyers time (usually about 10 days) to shop for homeowners insurance before finalizing their purchase.

Why is this a big deal? Imagine you get a quote for $10,000 a year when you were expecting $2,000 or $3,000. Yikes. The 22VV allows you to back out of the transaction if the cost of insurance is too high. I’ve personally used this addendum for clients when insurers refused coverage due to roof issues—and trust me, no one wants to be stuck replacing a $20,000 roof within 90 days of closing.

Do You Need Flood Insurance in Vancouver?

Vancouver, Washington, sits near the Columbia River, which means certain areas are flood-prone. But here’s the kicker—standard homeowners insurance does not cover flood damage. If you want flood protection, you’ll need a separate policy through the National Flood Insurance Program (NFIP) or a private provider.

Even if your home isn’t in a designated flood zone, checking FEMA flood maps and discussing your options with an insurance expert is a smart move. Trust me, it’s better to know your risks before the water starts rising.

What About Earthquake Insurance?

We’re not California, but we are in an active seismic zone. While major earthquakes are rare, they can happen. That said, earthquake damage is NOT covered under standard homeowners insurance policies.

If you want earthquake coverage, you’ll need to purchase a separate policy. Just be aware that these policies often come with super high deductibles. Is it worth it? That depends. If your home is older or built on soft soil, it might be a good investment. But personally, I’ve lived here for years and haven’t experienced an earthquake yet (knocking on wood as I type this!).

The Bottom Line: Don’t Skimp on Your Policy

Homeowners insurance isn’t a one-size-fits-all deal. If you own a home in Vancouver—or are planning to buy one—here’s what you need to do:

1. Review your policy annually – Call your insurance provider at least every other year to make sure your coverage aligns with your home’s current value, renovations, and major purchases.

2. Understand what’s covered and what’s not – Consider additional coverage for floods, earthquakes, and other specific risks.

3. Work with a trusted insurance provider – Get multiple quotes and ensure your policy provides the protection you actually need.

4. Do not skimp on coverage – Saving a few bucks upfront could cost you big in the long run.

One Last Story…

Back when I was working for a restoration company in Denver, we had a hailstorm with softball-sized hail (yes, you read that right). One investor I knew owned six rental properties and had cut corners on his insurance policies. While he had a reasonable $1,000 deductible for general claims, he didn’t realize his roof deductible was $5,000 per property. That meant he had to cough up $30,000 out of pocket to replace the roofs. Ouch.

Moral of the story? Know your policy. Read the fine print. Ask questions.

Final Thoughts

Homeowners insurance is one of those things that’s easy to ignore—until you desperately need it. Staying informed and proactive can save you thousands of dollars (and countless headaches) down the road.

So, Vancouver homeowners: take some time this week to review your policy. If you’re in the market for a new home, make sure you factor insurance costs into your budget. And if you have questions? Find a knowledgeable insurance agent who can guide you through the process.

Because when it comes to protecting your home, an ounce of prevention is worth a pound of repair bills.

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