How Much is Homeowners Insurance on a $200,000 House In 2024?

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Updated: 15 March 2024
Written by
Jeff Bray
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Many people dream of buying and owning their own homes. If you’re ready to take that step, you’ll have to shoulder new responsibilities. One of them is getting the right Homeowners Insurance. But with so many different options available, how do you select one?

You’ll want a policy that covers everything from the roof to the foundation of your home. In my experience in the insurance industry, homeowners want options when seeking Homeowners Insurance. They want to know what a policy includes and excludes so they can make informed decisions.

What you’ll discover is that educating yourself as a homeowner will make homeownership a more pleasant and rewarding experience. It’s about arming yourself with the information you need to make the right choices for you, your loved ones, and your house. As you read this guide, we’ll dig deep and give you the nitty-gritty on Homeowners Insurance on a $200,000 house. We’ll also provide insight into the best insurers available.

Key Takeaways

  • Homeowners Insurance cost is a function of the insurers’ determination of the odds of your filing a claim. This is referred to as risk.

  • Different states and cities face different risks that impact Home Insurance rates. Risks can include things like environmental factors such as floods, fires, and earthquakes.

  • Homeowners can safeguard their houses from risks by considering aspects of their residences, where they’re located, and getting the right coverage for their homes.

How Much Is Homeowners Insurance on A $200,000 House?

On average, homeowners can pay $1,876 annually for Homeowners Insurance on a $200,000 house. That is $156.33 per month. Ultimately, your monthly premium will be determined by your coverage amount and the structure of your policy.

There are some things insurance companies will look at when structuring your premium:

Your deductible: Following an incident, you’ll have to pay a certain amount before the insurance company pitches in for the rest. Your portion is called the deductible. The higher your deductible, the lower will be your premium. The lower your deductible, the higher will be your deductible.

Where you live: Where you reside will be a major. So, if your region is prone to crime or fires, that will impact your policy structure.

Claims history: Whether you’ve made claims in the past will also factor into the structuring of your premium. So, you can expect higher premiums if you’ve made lot of claims in the past.

Important: It’s possible for your rates to increase due to no fault of your own. If you live in a community with high crimes rates, for instance, your premiums will be higher than average.

Cost Of Homeowners Insurance by State

One of the major factors for Homeowners Insurance is your location. One can pay $32 monthly for a $250,000 house in Hawaii, then $304 for the same coverage for a house in Oklahoma. Location, therefore, plays a huge roll in your Homeowners Insurance rates.

For that same $250,000 residence, you can check out the chart below to see what rates you can expect to pay in other states.

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

Most costly states

For the purposes of being consistent, let’s stick with the example of a $250,000 home. While Oklahoma tops the list with its Homeowners Insurance policy at $304 monthly. The other states below Oklahoma include the following:

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

Cheapest states

What about the cheapest states for Homeowners Insurance for a home worth $250,000? Hawaii is the cheapest with a $32 per month policy. Other low-cost states include, in order, the following:

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

Cost Of Homeowners Insurance by Policy Limit

When you buy a house, you should insure it for its full value. Depending on the lender you work with, you might not have a choice. Insurers often go with quote-based increments of $100,000 or, in some cases, $50,000.

Keep in mind that your home’s sale price doesn’t always reflect the amount you want on your Homeowners Insurance policy. This amount covers only your home. Homeowners Insurance safeguards your personal possessions if you encounter a loss covered under the policy. When you face a total loss, the payout amount should be on par with the worth of your home and property. If you own costly items like artwork or collectibles, consider getting riders that will cover the loss of these things.

Cost Of Homeowners Insurance by Company

No two insurance companies are the same. So, you should look around, compare apples to apples, and choose the right insurer and policy for you. Your best bet is to get quotes from three or more insurance businesses before buying a policy. As was mentioned before, some insurers put together policies differently based on your region. Since different companies look at the region factor differently, you need to ensure you’re comparing apples to apples. There are various kinds of policies.

The three common Homeowners Insurance policies are:

HO1: Basic Form – This is called ‘named peril,’ which means there’s a list of perils the tenant can encounter on your policy. You won’t be covered if your incident is not included on the list.

HO2: Broad Form – It covers more than the basic form. Specifically, it covers the named perils and other things like falling objects, flooding, and the weight of snow and ice.

HO3: Special Form – This is the most common kind of policy. It combines HO1 and HO2, but it adds Liability insurance and Medical Payments, Additional Living Expenses, and personal property coverage. The special form, or HO3, is what’s called an ‘open peril’ because it covers all perils except for any excluded in the policy.

These will all include various costs, so when pricing your policy, you’ll want to get the right policy quote.

How Do You Calculate Your Home Insurance Needs For a $200,000 House?

You need to know your home. That’s the case whether you’ve been there for a short while or a long while. A homeowner’s policy is a major decision for you to make as a homeowner – and it’s something that can help you get back on your feet if you face a loss. It’s vital to weigh specific factors prior to making a purchase.

  1. The home itself – You need enough coverage so that you’re properly compensated if your home is lost by a covered peril.
  2. Other buildings around your home – This category includes garages, sheds, and other structures like doghouses.
  3. What you own – Your personal possessions ought to be covered in the event they’re stolen or lost.
  4. What if I can’t live in my home? – You’ll want coverage for living expenses if you suffer a total loss and can no longer live in your home. The coverage will ensure you have somewhere to stay while your residence is being rebuilt.
  5. What if someone gets hurt at my house? – Coverage should also include coverage to cover expenses of anyone injured on your property. It’ll cover liability and medical costs.

Looking at these factors will provide you with some indication of your target policy need and if $200,000 is enough insurance for your house.

What Do You Need to Cover in A $200,000 Home?

We mentioned this topic earlier in this guide, but let’s explore it in more detail. How much do you require to cover in your $200,000 home? A regular HO3 policy has various coverage levels, but it also has a lot of exclusions such as the following:

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

While there are many exclusions, the good news is you can get riders to cover many of these excluded items.

Flood Damage

It’s vital to consider rainwater and the damage it can cause. A Homeowners Insurance policy will cover water damage when the water comes from the sky. It’ll also offer coverage for most hurricane damage without your needing an add-on policy like a wind rider. But your Homeowners Insurance won’t cover you if the flood water comes from the ground. You’ll require Flood Insurance for coverage in such an event.

Collective Facts: Don’t forget that your Homeowners Insurance policy might not cover your collectibles. In such a scenario, you’ll need a separate policy to cover any family heirlooms, paintings, collections, or other valuables.

Earthquake Damage

A standard HO3 policy won’t normally cover damage caused by earthquakes. But you can add Earthquake Insurance to safeguard your home and possessions.

Does a $200,000 Home Need Replacement Cost Coverage?

You’ve probably heard before that a new car loses value the moment it’s driven off the lot. A similar principle applies to a house. Once a buyer takes possession of the keys to a home, the home starts to lose value. The depreciation isn’t as steep as a car driving off the dealership lot, but it loses some value nonetheless. Time takes a toll on any home.

When looking at Homeowners Insurance options, you must understand replacement cost vs. actual cash value. Do you know the difference? If no, see the following:

Actual Cash Value (ACV): When you buy a home for $200,000, it starts to lose value as time goes on. If you file a claim a decade later, it might be worth only $170,000. So, the ACV is $170,000, in such a scenario.

Replacement Cost Value (RCV): If you buy the same home for $200,000, your home will age the same and lose some of its value as it does so. But if you file a claim, you’ll get $200,000, so you won’t lose value because of depreciation. That’s the RCV.

There are some available add-ons to replacement cost value. Those include Guaranteed and Extended Replacement cost. One the one hand, Guaranteed will rebuild your house to the specifications of your original house. On the other hand, Extended will factor into the equation the house value inflation. A home that cost $200,000 to build may cost $300,000 to build now. It’s intended for people who live in disaster-prone regions such as Tornado Alley.

How to Get Home Insurance for My $200,000 House?

Purchasing insurance for your home doesn’t have to be difficult or time-consuming. Since you’re reading this guide, we know you’re seeking Homeowners Insurance for a $200,000 house. And we’ve suggested that it’s best to get quotes from at least three different insurers.   Assuming you’ve already done so, what comes next? Here are the other things to do:

Compare your quotes

Don’t assume that the first quote you get is the best quote. It might turn out to be, but you won’t know unless you get multiple quotes. And when assessing quotes, compare apples to apples. Don’t skim over the details. Read the fine print and see what’s included and what’s not.

Explore options

Cash value vs. replacement cost will factor into your premium. It can also help if you must replace your home because of a total loss.

Explore discounts

If your Homeowners Insurance provider also insures vehicles, it might be worth your while to switch your car insurance policy to the same insurer. You can potentially save money on both insurance policies. When you work can entitle you to lower rates as can any organizations you’re a part of. Other ways to save money include going paperless and paying for your policy annually rather than monthly.

Talk to a live person

While one can do a lot of things online, you should consider speaking to a live customer service representative for your Homeowners Insurance needs. An agent can help you get the right coverage and inform you of discounts you might miss if doing the process on your own.

How to Save On Homeowners Insurance for a $200,000 House

There are many ways to save money. So, it’s a good idea to discuss your Homeowners Insurance needs with a live agent. They can look for discounts to help reduce your monthly premium. You can, for instance, bundle insurance policies and go paperless. Here are some other ways you can save money:

Installing security cameras

It’s a good idea to put in a security camera. They can help reduce the odds of criminal activity on your property. And you can get a price cut on your insurance.

Where you live

Living in a community with a low crime rate can translate into lower premiums.

Your credit score

If your credit score is good, your insurance rates will be better. You’ll want to boost your credit score.

Deductible and coverage limits

Lessening your policy limits can help cut your monthly premium.

Construction code

Is your home up to code? If it is or if you’ve invested into retrofitting it for storms, you can benefit from lower Homeowners Insurance rates.

Factors That Affect the Cost of Homeowners Insurance

We previously said that where your home is situated will factor greatly into your insurance rates. You’ll see below other factors that can influence your rates.

Age of the home

How long ago your home was constructed is one factor. A newer home is more likely to be up to code than an older one, which means a newer home will be cheaper to insure than an older home. If your home is newer, it’s likely to be up to code and have a tile, rather than composite shingle, roof.

Proximity to fire hydrant

You might not know this, but your Homeowners Insurance will be lower the closer you live to a fire hydrant.

Weather

Your home insurance will be higher if you live in a zone that gets earthquakes, in tornado alley, or along the Gulf Coast. You may need a rider to get the extra protection you need for your home and possessions.

Building materials

What your home is constructed from will determine your rate. Wood and sheetrock or brick and mortar can factor into the price of your coverage.

Other things that can factor into your policy costs include the population in your region, state regulations, and marital status.

FAQs

What is the cheapest state for $200,000 homeowner insurance?

Based on our research, Vermont was the lowest-cost insurance in the U.S.

Is it hard to get Homeowners Insurance on a $200,000 house?

It’s not hard to seek out insurance for a $200,000 house. Just ensure you focus on insurers that sell coverage in your area. When you start to fill out applications to get quotes, compare the same type of policy for each insurer. So, if you look for an HO3 policy for one insurer, don’t compare that price to an HO1 policy for another insurer.

What does Homeowners Insurance cover?

HO3, the standard Homeowners Insurance policy, covers the residence itself, other structures like a doghouse, shed, or garage, personal possessions, living expenses if you’re displaced, and personal liability if someone is injured on your property.

What isn’t covered by Homeowners Insurance?

Homeowners Insurance excludes thirteen perils. But you can buy riders to cover some excluded perils. The thirteen named perils include: Flooding, mold or wet rot, earth movement, pest infestations, local building ordinance or law, intentional damage, certain dog breeds, wear and tear or neglect, power surges, home-based business liability, nuclear hazard, war, and government action.

What are the most expensive states for $200,000 Homeowners Insurance?

Oklahoma, Kansas, and Nebraska are among the costliest states for Homeowners Insurance. These states all happen to be situated within Tornado Alley. But there are ways to slash your costs. For instance, you can buy a home made of brick or install storm shutters or shatterproof glass.

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