How Much is Homeowners Insurance on a $150,000 House?

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Updated: 01 December 2023
Written by
Jeff Bray
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Purchasing a home is the dream of many individuals and families. You are out in the world, making adult decisions, and now Homeowners Insurance is your next big choice. However, there are so many options, which will you choose?

You don’t want to select a policy that does not provide coverage slab to roof. It has been my experience that Homeowners Insurance shoppers want options. They want to see what a policy offers and then make their decision.

And good for you, an educated homeowner is a happy one. Through this review, we will guide you through Homeowners Insurance on a $150,000 house and provide you with the best companies available.

Key Takeaways

  • Homeowners Insurance cost is driven by the insurance companies’ judgment in the likelihood of you filing a claim. This is called risk.

  • Each state and city have different risks that cause Homeowners Insurance rates to fluctuate. These risks can include environmental dangers like fire, flood, or earthquake.

  • Homeowners can help protect their home from risk by knowing their home, the area they live in, and purchasing the right policy for their home.

How Much Is Homeowners Insurance on A $150,000 House?

On average, homeowners can pay $960 annually for Homeowners Insurance on a $150,000 house. That is $80 per month. Ultimately, your premium will depend on coverage amount and how you structure your policy.

There are a few key factors that insurers consider when structuring your premium:

Your deductible: After you have an incident, this is the amount you will pay before the insurance begins to pay. The higher the deductible, the lower your premium. The lower the deductible, the higher you will pay per month.

Where you live: Your address will be a primary factor. Is the area in a fire zone or prone to crime? These can contribute to a higher insurance premium. There are some ways to help you lower costs; we will discuss this later.

Claims history: Have you filed a claim in the past? Like auto insurance, your rates may be higher if you have excessive damage claims.

Important: Even if you do not have claims, neighborhood crime can cause insurance rates to climb.

Cost Of Homeowners Insurance by State

One of the biggest factors to the cost of Homeowners Insurance is where you live. One can pay $32 monthly in Hawaii for a $250,000 house, then $304 for the same coverage in Oklahoma. It truly is about location, location, location.

For that same $250,000 home, let’s look at how much premiums would be in a few other parts of the U.S.

State Premium
California $102
Texas $164
Florida $ 165
New York $126
Utah $58
Tennessee $146
Illinois $117
Washington $79
North Carolina $108
Maryland $97

Most expensive states

To keep things in perspective, let’s keep it with a 250K home. We already know Oklahoma is at the top of the list with their Homeowners Insurance policy at $304 per month. Which would be the next states to follow them?

State Premium
Kansas $257
Nebraska $246
Colorado $179
Arkansas $177
South Dakota $175

Cheapest states

Now, look at the bottom of the scale and see the cheapest states for Homeowners Insurance for a $250,000 home. We know that Hawaii has a $32 per-month policy. Let’s keep our eyes stateside.

State Premium
Vermont $55
Delaware $57
Utah $58
Oregon $60
New Hampshire $61

Cost Of Homeowners Insurance by Policy Limit

When you purchase a home, always insure it for the entire value. In fact, the lender, in most cases, will demand it. Insurance companies will quote-based increments of $100,000, some even $50,000.

Remember that your house’s sticker price is not always the amount you want for your policy. This covers only your dwelling. Homeowners Insurance protects your personal property should you suffer a loss that is covered under the policy. When you experience a total loss, the payment should match your home and property. If you have expensive items, consider riders covering artwork, heirlooms, and other high-dollar items.

Cost Of Homeowners Insurance by Company

Not all companies are created equal. This breeds competition. It is wise to shop around and get a quote from at least three companies before purchasing a policy. As we discussed a minute ago, some companies break down their policies differently based on your area. Each company rates this factor differently. Ensure you are comparing apples to apples. There are different types of policies.

The three basic homeowner policies are:

  • HO1: Basic Form – This is known as ‘named peril.’ This means you have a list of perils the tenant can suffer on your policy. You will not be covered if your incident is not on the list.
  • HO2: Broad Form – As its name implies, it covers more than the basic. It covers the named perils and other incidents such as falling objects, overflow of water or stream, and weight of snow and ice.
  • HO3: Special Form – This is the most common type. It combines HO1 and HO2 and adds Liability insurance, Additional Living Expenses, and Medical Payments. It also adds personal property coverage. It is an ‘open peril.’ This means it covers all perils unless your policy excludes it.

Each of these will carry a different cost, so when pricing your policy, ensure you receive the correct HO form policy quote.

How Do You Calculate Your Home Insurance Needs For a $150,000 House?

It is important to know your home, whether you have lived there for one year or ten years. A homeowners policy is one of the biggest insurance decisions you can make should you experience a loss. It is important to consider these factors before making your purchase.

  1. The home itself – This coverage is there should your home be lost due to a covered incident.
  2. What you own – Your personal property should they be lost or stolen.
  3. Other buildings around your home – These include sheds, garages, and other structures like a doghouse.
  4. What if I can’t live in my home? – This part of your insurance will pay for living expenses while you cannot live in your home while it is being rebuilt.
  5. What if someone gets hurt at my house? – This portion can help pay for expenses should someone be injured on your property. It will pay for liability and medical expenses.

Considering all these factors will give you an idea of your target policy need and if $150,000 is adequate insurance for your home.

What Do You Need to Cover in A $150,000 Home?

We touched on it earlier, but let’s discuss it further. What do you need to cover in your $150,000 home? A standard HO3 policy has many levels of coverage, but it also has many exclusions. Among these are:

  • Flood damage
  • Neglect
  • Power failure
  • Mold damage
  • Intentional damage
  • Earthquake
  • Foundation issues
  • Pet damage
  • Rodent infestation
  • Defective construction

That be given, some riders can be added that provide coverage for some of the excluded items.

Flood Damage

Consider rainwater. A homeowners policy will cover water damage when it falls from the sky. It will cover most hurricane damage without purchasing a wind rider or a separate deductible. However, you are not covered if the water rises from the ground. You will need to purchase Flood Insurance to be covered.

Collective Facts: Remember that if you have collectibles, this may not be covered entirely by a homeowners policy, and you may need to purchase a separate policy to cover items such as paintings, collections, and artifacts.

Earthquake Damage

Another natural disaster the other coast deals with does not fall within the parameters of being covered under a standard HO3 policy. One can add Earthquake Insurance to have coverage for their home and belongings.

Does a $150,000 Home Need Replacement Cost Coverage?

You have heard the adage that a vehicle loses value the second it drives off the lot. Well, that can be said somewhat of a home. The home loses some of its value the moment the keys are handed to the buyer. Age takes over. While it is not as strenuous as a vehicle, time will take its toll on a home.

When considering home insurance, replacement cost vs. actual cash value becomes essential. Here is the difference:

Actual Cash Value (ACV): When you purchase a home, you pay $150,000. As your home ages, it loses its value. When you experience a claim ten years later, it may be worth $120,000. This is its ACV.

Replacement Cost Value (RCV): You purchase the same home for $150,000. Your home ages the same, it still loses its value. However, when you experience a claim, you will receive $150,000. You do not lose any value due to depreciation.

There are a couple of add-ons to replacement cost value. Guaranteed and Extended Replacement cost. Guaranteed will rebuild your home to the specs that the original house was constructed under. Extended will factor in home value inflation. A home that cost 150K to build may cost 250 to build now. It is designed for those who live in disaster-prone areas like Tornado Alley.

How to Get Home Insurance for My $150,000 House?

Purchasing Home insurance doesn’t have to be a complicated process. We know you are looking for insurance for a home for $150,000, and we have suggested you pull quotes from three companies. Let’s assume you have all that together. What is the next step you will take for your home insurance?

Compare your quotes.

Remember, the least expensive is not always the best. Make sure you compare apples to apples. Read the fine print and check for included benefits that the others do not include.

1

Explore discounts.

If your homeowners company also insures vehicles, you may want to consider switching your auto policy to the same company. This can save you money on both policies. Where you work can also bring benefits, as can the organizations you belong to. Going paperless or paying for your policy annually instead of monthly can bring discounts.

2

Explore options.

Cash value vs. replacement cost will have an impact on your premium. It can also assist you in the future to replace your home in the event of a total loss.

3

Talk to a live person.

While one can do so much online, it has been suggested that you talk to a live agent. They can ensure adequate coverage and help you find discounts you may miss.

4

How to Save On Homeowners Insurance for a $150,000 House

You can save money on your homeowner’s policy. This is one of the main reasons why it is essential to talk to a live agent. They can search for discounts to help you lower your monthly premium. We talked about bundling and going paperless, but here are a few other dollar-saving ideas.

Installing security cameras

Having an eye on your place can deter thieves and provide a discount on your insurance policy.

Where you live

Living in a low-crime area will also provide a lower insurance rate.

Your credit score

Insurance companies use your credit rating as a measure of your insurance rates. Improving your credit score can lower your premium.

Deductible and coverage limits

Lowering your policy limits can help you save on your premium.

Construction code

If your home is up to code or has been retrofitted for storms, it can provide discounts.

Factors That Affect the Cost of Homeowners Insurance

We discussed the location of your home being a primary factor in the insurance cost. Here, we want to discuss other factors that impact the cost of Homeowners Insurance.

Age of the home

How long the home has been there? A newer construction will be less expensive to insure than an older one. Chances are it is more up-to-code and tile roof than composite shingle.

Proximity to fire hydrant

Believe it or not, the closer you live to a fire hydrant, the less you will pay for Homeowners Insurance.

Weather

Living along the Gulf Coast, tornado alley, or earthquake country can impact the cost of insurance. Remember that some of those, you will need to purchase a rider for coverage.

Building materials

What your home is made of will impact your insurance cost. Wood and sheetrock or brick and mortar can determine the price of your homeowners policy.

Other elements that can play into your insurance premium are how many people live in your area, specific state regulations, and marital status.

FAQs

Is it hard to get Homeowners Insurance on a $150,000 house?

Shopping for Homeowners Insurance for $150,000 is not difficult. The main thing is to find a company that sells policies in your area. Then, when you begin to fill out information for quotes, ensure you are comparing the same policy with each company. For instance, an HO1 policy will cost less than an HO3.

What is the cheapest state for $150,000 homeowner insurance?

Through our review, Vermont was the least expensive state to purchase homeowner insurance in.

What does Homeowners Insurance cover?

The standard Homeowners Insurance policy, which is HO3, covers the home itself, other structures such as a garage or shed, your personal property, additional living expenses while you are displaced, and personal liability should someone injure themselves on your property.

What isn’t covered by Homeowners Insurance?

There are thirteen perils Homeowners Insurance does not cover. However, you can purchase riders that will cover some perils. The thirteen named perils are: Flooding, earth movement, pest infestations, mold or wet rot, certain dog breeds, wear and tear or neglect, power surges, home-based business liability, local building ordinance or law, intentional damage, nuclear hazard, war, and government action.

What are the most expensive states for $150,000 Homeowners Insurance?

Among the most expensive states to live in are Oklahoma, Kansas, and Nebraska. These states are within Tornado Alley. However, there are ways to lower your insurance rate. You can purchase a home made of brick or install shatterproof glass or storm shutters.

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