Living in Lakewood means you're part of a diverse Pierce County community where military families, long-time residents, and newcomers all share the same Pacific Northwest weather challenges. With a population of over 63,000 and a median home value of $512,441, protecting your home is one of the most important financial decisions you'll make. The good news? Lakewood homeowners typically pay less for insurance than most Washington residents. The catch? You need to understand what your policy actually covers—and what it doesn't.
Whether you're stationed at Joint Base Lewis-McChord, settling down near American Lake, or buying your first home in one of Lakewood's established neighborhoods, this guide will help you navigate home insurance costs, coverage options, and the unique risks that come with living in Western Washington.
What Home Insurance Costs in Lakewood
Here's something that might surprise you: Lakewood homeowners actually enjoy some of the most competitive home insurance rates in Western Washington. In Pierce County, you're looking at annual premiums ranging from $510 to $689—that's about $42 to $57 per month. Compare that to Washington's state average of $1,215 to $1,474 per year, and you're saving hundreds of dollars annually just by living here.
But before you celebrate those lower premiums, you need to know something important: Washington home insurance rates jumped 19.5% in the past year alone, marking the third-largest increase nationwide. Over the past six years, rates have climbed by a cumulative 51%. This means the premium you're quoted today might look different when it's time to renew next year.
Your actual cost depends on several factors specific to your home. With 44% of Lakewood's housing being detached single-family homes built in the 1970s (the median construction year is 1974), many homes need updates to electrical systems, roofing, and plumbing—all things insurers care about when setting your rate. If your home is newer or recently renovated, you'll likely qualify for better rates. If you're buying a charming older home near Fort Steilacoom Park, expect insurers to ask detailed questions about updates and maintenance.
Understanding Coverage in a Military Community
Lakewood's proximity to Joint Base Lewis-McChord shapes the insurance landscape here. If you're active-duty military or a veteran, you have access to specialized insurance providers that civilian homeowners don't. USAA, Armed Forces Insurance, and Navy Federal all offer competitive rates and understand the unique needs of military families, including deployment-related coverage extensions and flexible policy terms when you PCS.
For military families deciding between on-base housing at JBLM (managed by Lincoln Military Housing) and buying a home in Lakewood, the insurance considerations are different. On-base housing typically includes coverage through your BAH, with Lincoln Military Housing handling maintenance and liability. But if you're buying off-base, you're responsible for securing your own coverage. Many military families choose Lakewood specifically because home values here—with a median of $512,441—stretch BAH dollars further than in Seattle or Bellevue, while still keeping you close to base.
The Flood Insurance Reality Check
Here's the thing about Pacific Northwest weather that catches many new homeowners off guard: your standard home insurance policy doesn't cover flood damage. Not even close. And this matters in Lakewood because Washington experiences $150 million in flood damage every single year, with over 3,000 flood and flash-flood warnings issued across Washington counties in the past two decades.
Living near American Lake, Steilacoom Lake, or Waughop Lake sounds idyllic until you realize that proximity to water bodies can increase flood risk. Climate change has intensified these risks as storms carry more moisture and atmospheric river events—the infamous "Pineapple Express"—dump over ten inches of rain in 48 hours. Recent flooding in December 2024 led Washington's Insurance Commissioner to issue an emergency order protecting homeowners, but here's the sobering statistic: only about 45,000 homes statewide had flood insurance when that flooding hit.
Industry experts point out that just one inch of water in your home can cause $25,000 to $30,000 in damage. Flood insurance typically costs a few hundred to a couple thousand dollars per year—far less than paying out of pocket to replace flooring, drywall, appliances, and furniture. If you have a federally-backed mortgage and live in a Special Flood Hazard Area, your lender requires flood coverage anyway. But even if you're not in a high-risk zone, consider getting a quote. The National Flood Insurance Program and private insurers both offer policies worth comparing.
What Your Lakewood Policy Should Include
A solid home insurance policy in Lakewood covers more than just the structure. You need dwelling coverage high enough to rebuild your home at current construction costs—not just the purchase price. With Lakewood's diverse housing stock ranging from 1970s-era single-family homes to newer townhouses near the Lakewood Towne Center, reconstruction costs vary widely. Make sure you're not underinsured.
Personal property coverage protects your belongings—furniture, electronics, clothing, and more. Most policies cover 50-70% of your dwelling coverage amount, but if you have expensive items like jewelry, musical instruments, or collectibles, you'll need to schedule them separately. Liability coverage is equally important. With 55.2% of Lakewood homes being rentals, landlords need robust liability protection. But even if you're just hosting friends for a barbecue, liability coverage protects you if someone gets injured on your property.
Loss of use coverage matters more than you might think. If your home becomes uninhabitable due to a covered loss—say, a kitchen fire or severe storm damage—this coverage pays for temporary housing while repairs are made. Given Lakewood's median household income of $70,524, most families can't afford to pay both a mortgage and temporary rent simultaneously without insurance help.
How to Get the Best Rate
Shopping around isn't optional anymore—it's essential. With rates jumping nearly 20% in a single year, the insurer that offered you the best rate three years ago might not be competitive today. Get quotes from at least three to five companies. Nationwide, State Farm, Allstate, and regional providers like Pemco all compete for Washington customers, and their rates can vary by hundreds of dollars for the same coverage.
Bundle your home and auto insurance with the same company. Most insurers offer multi-policy discounts of 15-25%. If you're military, ask about military discounts. If you're a veteran, compare USAA's rates even if you bought your home years ago—you can switch anytime. Improve your home's safety features and tell your insurer about it. New roof? Upgraded electrical panel? Smart home security system? These improvements often qualify for discounts and reduce your risk of filing claims.
Consider raising your deductible. Choosing a $1,000 or $2,500 deductible instead of $500 can significantly lower your premium. Just make sure you have enough in savings to cover the higher deductible if you need to file a claim. And maintain good credit—Washington insurers use credit-based insurance scores when setting rates, so responsible credit management directly affects your premium.
Protecting your Lakewood home doesn't have to be complicated or expensive. With the right coverage, competitive rates, and smart shopping, you can secure the protection your home needs while keeping premiums manageable. Start by getting multiple quotes, review your coverage annually, and don't skip flood insurance if your home is anywhere near water. Your home is likely your largest investment—make sure it's properly protected.
