A home is more than a financial asset; it’s a cornerstone of stability, family life, and cherished memories. For many, especially physicians, a home represents both a significant investment and a sanctuary—a place where life’s meaningful moments unfold. Physicians dedicate years to achieving the financial security that allows them to invest in a home, which makes it essential to protect that asset fully. The White Coat Investor is committed to supporting followers in safeguarding the financial investment of their homes and the space that holds their family’s milestones and memories. By providing expert guidance and resources, WCI ensures physicians can preserve the value and the meaning of their homes.
Are you paying more than you need to for homeowners insurance? We work with the carriers on Farmers Insurance Choice® to help you secure great insurance coverage at discounted prices. Compare quotes from multiple top carriers for auto, home, renters, motorcycles, boats, RVs, and more—all in one convenient place. Customers save an average of $509* a year on auto and home insurance by switching to Farmers GroupSelect®. Call 888-805-2001 or get a quote online to see how much you can save.
In this guide, WCI followers will find the basics of choosing homeowners insurance: understanding the types of coverage available, customizing policies for any home, and balancing insurance costs with protection. With practical tips for reducing costs, insights on necessary (and unnecessary) riders for various assets, and guidance in avoiding common buyer mistakes, this resource is dedicated to looking out for WCI followers' best interests.
How Much Homeowners Insurance Coverage Do Physicians Need?
Physicians need more than just basic coverage; they need insurance that truly protects the home they’ve worked so hard to build. At a minimum, that means enough to cover the replacement cost—the amount it would take to rebuild the home itself, not its market value. Replacement cost coverage ensures you’re financially whole, even if rebuilding costs rise like they have in the last several years.
A few may think about self-insuring, but for most, that may not be the best financial move. Covering the full cost of rebuilding or handling liability claims out-of-pocket could drain the savings you’ve worked hard to build. Insurance is there to shoulder the big risks, so your financial security remains.
Physicians should also prioritize liability coverage. High limits—$300,000 or more—are essential, and an umbrella policy is an affordable way to extend that protection further.
What Does Homeowners Insurance Cover?
Homeowners insurance provides essential protection for a property, its contents, and the financial and emotional security of the owner. However, standard policies often come with limitations that may leave certain areas underinsured in case of loss or damage. It’s crucial to understand these potential gaps in coverage and assess where additional protection may be necessary. Here’s a breakdown of what’s typically covered, common additional riders, and important considerations when designing a policy tailored to a variety of needs.
#1 Dwelling Coverage
This is the foundation of any homeowners policy, covering the structure of your home itself. If a fire, windstorm, or similar disaster damages your home, dwelling coverage helps with the cost to repair or rebuild. For high-value homes, replacement cost coverage is crucial to avoid out-of-pocket costs if construction expenses rise.
Example: An orthopedic surgeon whose home was damaged by a fire could rebuild without financial strain thanks to replacement cost coverage, which kept them from paying out-of-pocket when construction costs came in higher than expected.
#2 Other Structures
Homeowners insurance typically covers additional structures on your property—such as detached garages, guest houses, sheds, and fences—usually at a percentage of your dwelling coverage. If you have valuable detached structures, double-check the limits to see if you need a rider for full protection.
Example: A general practitioner built a detached home office, only to find it wasn’t fully covered by their policy’s standard limit for other structures. By adding a rider, they can ensure it would be protected in case of future damage.
#3 Personal Property
Homeowners insurance also covers personal belongings like furniture, electronics, and clothing, up to a certain limit—typically 50%-70% of the dwelling amount. High-value items like jewelry or art often need additional riders to be fully covered.
Example: After a burglary, a dermatologist was relieved that their policy covered most household items. However, they learned that their high-value art collection wasn’t fully insured and added a rider to protect it.
#4 Liability Coverage
Liability coverage is key for physicians, offering protection if someone is injured on your property or if you accidentally cause damage to someone else’s property. It covers medical bills, legal fees, and damages. Higher liability limits are often recommended for physicians, along with an umbrella policy for added protection.
Example: An emergency room physician faced a lawsuit after a guest slipped on their icy steps. Their homeowner's insurance covered the guest’s medical bills, while their umbrella policy handled additional legal expenses, keeping their personal assets intact.
#5 Additional Living Expenses (ALE)
If your home becomes uninhabitable due to a covered event, ALE coverage pays for temporary housing, meals, and even additional travel costs. This ensures you can continue life as normally as possible while repairs are underway.
Example: After a major storm caused damage to their home, an internist’s ALE coverage allowed their family to stay in a hotel near the hospital where they worked, reducing disruption and additional commuting time.
What Doesn’t Homeowners Insurance Cover?
Homeowners insurance doesn’t cover everything; here are some common exclusions and options for additional coverage.
#1 Flood Damage
Standard policies don’t cover flood damage. If you live in a flood-prone area, you’ll need separate flood insurance to protect against this type of loss.
Example: A plastic surgeon in a coastal area learned the hard way after their basement flooded during a storm. Since flood damage wasn’t covered, they later added a flood policy to avoid future financial losses.
#2 Earthquake Damage
Most policies exclude earthquake damage. If you live in an earthquake-prone area, you’ll want to consider purchasing a separate earthquake policy.
Example: After a small quake caused structural damage, a hospitalist in California realized they needed additional coverage. They added an earthquake policy, knowing it could save them significant expenses in a future, larger quake.
#3 Sewer or Water Backup
Issues like sewer backup or a failed sump pump are not typically covered. Many insurers offer an add-on to protect against this type of water damage.
Example: When a backed-up sewer line caused water damage, a veterinary surgeon who didn't have this add-on faced costly repairs. They later opted for the extra coverage to avoid a similar situation.
#4 Maintenance-Related Damage
Homeowners insurance doesn’t cover damage from maintenance issues, such as mold or pest infestations. It’s designed for sudden and accidental events, not gradual damage from a lack of upkeep.
Example: After discovering mold in the basement, a neurologist learned it wasn’t covered due to its gradual growth. They took steps to prevent future issues by addressing moisture problems.
Self-insuring certain items might make sense to save a few dollars, but it’s critical to understand the inclusions and exclusions of homeowners insurance to design a policy that fits unique financial situations. A well-tailored policy can protect both home and lifestyle, ensuring that what matters most, financially and emotionally, is fully covered.
Additional Riders and Add-Ons for High-Income Households
For high-income households, standard homeowners insurance may fall short in protecting unique, high-value assets and certain risks. Additional riders and add-ons provide enhanced coverage for specific items and situations, ensuring that your insurance fully aligns with your lifestyle and financial profile. Here are some essential options to consider.
#1 High-Value Personal Items Above Standard Limits
Standard policies have coverage limits on high-value items like jewelry, electronics, or art. If you own expensive items, you may need to add riders to ensure full coverage.
Example: A dermatologist’s valuable watch collection wasn’t fully covered under standard limits. By adding a rider, they could insure each item for its full replacement value.
#2 Home Business Endorsement
If you run a business from home, this add-on extends coverage to business-related property, like equipment and inventory, and it may provide some liability coverage. Standard homeowners policies usually exclude business property, so a home business endorsement can cover professionals who work from home.
Example: A psychiatrist who ran a telemedicine practice from home added a business endorsement to cover essential office equipment, ensuring they wouldn’t lose out if their equipment were damaged.
#3 Identity Theft Protection
High-income households are often at higher risk of identity theft. Many insurance companies offer identity theft coverage as an add-on, assisting with legal fees, lost wages, and expenses associated with recovering stolen personal information.
Example: When a physiologist’s identity was compromised, their identity theft rider helped cover the costs of restoring credit and addressing fraudulent charges.
#4 Ordinance or Law Coverage
If you own an older home, local building codes may require costly upgrades if you need to rebuild after a covered loss. Ordinance or law coverage provides funds to bring the property up to current codes, which can be particularly valuable if local codes have changed since your home was built.
Example: An obstetrician’s older home required additional work to meet updated electrical codes after a fire. Ordinance or law coverage helped cover these added expenses.
#5 High-Value Home and Equipment Coverage
If you own unique or luxury features—like a custom pool, high-end home systems, or specialized appliances—consider extra coverage to protect these assets. Many policies exclude or limit coverage for these items.
Example: A nurse anesthetist invested in a custom wine cellar and added a rider to ensure it would be fully covered if damaged.
How Much Does Homeowners Insurance Cost?
The cost of homeowners insurance varies widely, especially for physicians who may own high-value homes or who need additional coverage. Knowing the factors that influence premiums can help tailor coverage to fit both budget and protection needs.
Factors That Affect Homeowners Insurance Premiums
- “Location, location, location”: Homes in areas prone to natural disasters or high crime rates usually have higher premiums due to increased risk.
- Replacement cost: High-value homes or those with custom features cost more to insure because they require more funds to rebuild.
- Age and condition of the home: Older homes or homes with outdated systems may increase premiums, though upgrading these systems can reduce costs.
- Deductible amount: Choosing a higher deductible generally lowers your premium, while a lower deductible results in a higher premium.
- Claims history: Frequent claims on the property can lead to higher premiums, as insurers view it as a greater risk.
- Safety and security features: Homes with security systems, smoke detectors, or storm-proof features may qualify for discounts.
- Credit score: In many states, insurers consider credit scores when determining premiums, with higher scores often leading to lower premiums.
Avoid These Mistakes Physicians Can Make When Purchasing Homeowners Insurance
When selecting homeowners insurance, it’s easy to overspend on features or riders that may not be necessary for everyone. For instance, some people purchase additional personal property coverage or add specific riders for high-value items they don’t own, like expensive art or jewelry. If your belongings don’t exceed the standard personal property limits, there’s no need to add extra coverage. Similarly, choosing a low deductible may seem safe but can drive up premiums unnecessarily; a higher deductible often makes more sense for high-income earners who can cover minor repairs out-of-pocket.
Other common mistakes include paying for identity theft protection when similar coverage might already be provided through a credit monitoring service or bank. Rental income or home business endorsements also aren’t necessary unless you rent out a portion of your home or operate a business from it. Likewise, riders for recreational or “attractive nuisance” items, like pools or trampolines, aren’t needed if these features aren’t on your property. Additionally, flood or earthquake coverage may be unnecessary if you live in a low-risk area, so it’s worth confirming whether these add-ons are relevant to your location.
However, one almost essential coverage addition, especially for high-net-worth individuals like physicians, is an umbrella policy. This provides extra liability protection, helping to safeguard personal assets in the event of a major claim or lawsuit. By understanding what is truly necessary, you can avoid paying for redundant features while ensuring comprehensive protection where it matters most.
Tips to Save on Homeowners Insurance Premiums
Physicians can reduce homeowners insurance premiums without sacrificing coverage by applying several effective strategies. Bundling multiple policies—like home, auto, and umbrella insurance—can lead to substantial savings, as many insurers offer discounts for combining policies. This reduces premiums and also simplifies the process by consolidating coverage under a single provider.
Additionally, choosing a higher deductible is a straightforward way to cut monthly premiums, as taking on more out-of-pocket responsibility for minor claims lowers the overall risk for the insurer. This works well for physicians with emergency funds that can handle small repairs.
Another valuable approach is installing home safety features—such as security systems, smoke detectors, and storm-resistant windows. These upgrades decrease the risk of damage or theft, and insurers often offer discounts for homes with these protective measures. Loyalty discounts can also benefit long-term customers, though it’s still wise to re-evaluate your policy annually to ensure you’re getting the best rate and coverage for any changes to your home’s value or personal needs.
Followers of The White Coat Investor (WCI) also have access to exclusive discounts through WCI’s partnership with some of the best insurance providers offering reduced rates specifically for physicians. This partnership gives WCI followers the added advantage of competitive premiums on comprehensive coverage, ensuring protection that aligns with their unique needs and lifestyles.
Additional strategies include avoiding small claims to maintain a good claims history, improving your credit score, and checking for group or affinity discounts through professional associations. Certain home features, like a swimming pool or trampoline, can increase premiums due to liability risks, so limiting these “attractive nuisances” can also help save on costs. Lastly, maintaining or upgrading the roof, or investing in energy-efficient home upgrades, can sometimes yield discounts from insurers as well, providing extra protection and premium savings over time.
To summarize, here are discounts to look for and ways to reduce homeowners insurance costs:
- WCI follower discount
- Policy bundling discounts
- Higher deductible savings
- Home safety upgrades
- Loyalty and annual re-evaluation
- Claims-free discount
- Credit score advantage
- Medical association group savings
- Limiting liability risks
- Energy efficiency discount
- Roof maintenance savings
The Bottom Line
Homeowners insurance is more than a policy—it’s a way to protect everything that makes your house a home. For physicians, the right coverage means knowing that your financial future, lifestyle, and the memories you’ve built are secure. By understanding your options, avoiding common pitfalls, and tailoring coverage to fit your unique needs, you’re not just insuring a structure but preserving a legacy. With the right homeowners insurance in place, you can focus on what matters most, confident that your home and family are well-covered.
What Other Insurance Coverage Do Physicians Need?
For a typical doctor or other high-income professional, the financial catastrophes worth insuring against include disability, personal and professional lawsuits, death of a breadwinner, illness and injury, and loss of expensive property.
Physicians can insure against these risks with:
- Disability insurance
- Malpractice insurance
- Term life insurance
- Health insurance
- Homeowners insurance
Get a quote today for homeowners insurance and save with the WCI follower exclusive discounts!
*Based on average nationwide annual savings of new Farmers GroupSelect® customers surveyed from 2/1/2023, to 9/19/2024, who switched their home insurance policies to Farmers GroupSelect branded policies, responded to the survey, and realized savings. Potential savings vary by customer and may vary by state and product.
The White Coat Investor may receive compensation from White Coat Insurance Services, LLC; licensed in all states including MA and DC; CA license #6009217; NY license #1758759 (exp. 6/2025); Registered address: 10610 S. Jordan Gateway, #200 South Jordan, UT 84095. This does not affect the cost or coverage of insurance.