How Much is Homeowners Insurance on a $350,000 House?

In my experience in the industry, people looking for homeowners insurance want many options to compare so they can find the right one for them. They want to know what different policies offer to facilitate informed decisions.

The more informed you are as a homeowner, the happier you’ll be. As you read through this review, we’ll give you the information you need for homeowners insurance on a $350,000 house. We’ll also explain the best companies available for your needs.

Average Cost Of Homeowners Insurance On A $350,000 House – By State

One of the main factors for the cost of homeowners insurance is your location. You might pay $165 monthly in Florida for a house worth $350,000 and $54 monthly for the same coverage on a $350,000 home in Utah. It really is about location, location, location.

For that same $350,000 residence, here’s a look at premiums in other U.S. states.

Most Expensive States For Homeowners Insurance On A $350k Home

We’ve already seen that the highest homeowners insurance rates in the country are in Kansas at around $257 per month. Other expensive states include the following:

Cheapest States For Homeowners Insurance On A $350k Home

Let’s examine the cheapest states for homeowners insurance for a $350,000 house. Vermont has the lowest rates starting at around $55 per month. Other low-cost states for homeowners insurance include the following:

Cost Of Homeowners Insurance by Policy Limit

When you buy a home, it’s essential to insure it for the full replacement cost valuation. It’s likely that the lender will insist that you do so.

Don’t forget that your home’s sticker price doesn’t always reflect the tally you want for your homeowners insurance policy. It only covers your dwelling amount. Homeowners insurance safeguards your personal property should you sustain a loss covered by the policy.

If you encounter a total loss, the payout amount should match your home and property. If you own costly items like artwork, family heirlooms, or other things, get an add-on rider to cover these items.

Average Cost Of Homeowners Insurance On A $350,000 House – By Company

One insurance business isn’t necessarily as good as another. So, you need to look around for the right fit. Get three or more quotes from different insurers before buying a Homeowners Insurance policy.

Some insurers break down their homeowners insurance policies in different ways based on factors like where you live. Different insurance providers rate this variable differently. You’ll want to compare apples to apples when examining policies and insurance providers.

There are various kinds of policies, the three common homeowner policies are as follows:

HO1: Basic Form – This is called a ‘named peril’ which refers to a list of problems a tenant can encounter on your property. You won’t be covered if your incident is not included on the list.

HO2: Broad Form – This covers more than the basic form. It covers the named perils and other incidents like the weight of ice and snow, falling objects, and overflow of stream or water.

HO3: Special Form – This is the most prevalent type. It combines HO1 and HO2, but it also adds Additional Living Expenses, Liability insurance, and Medical Payments. Personal property coverage is included as well. It is an ‘open peril,’ which means it covers all perils except for any excluded by your policy.

Each of these policy types will carry different costs. When pricing your policy, you must ensure you have the right HO form policy quote.

How Much Coverage Do I Need For A $350k House?

If you bought your home for $350k, that doesn’t necessarily mean that you need that amount of coverage. Remember, you need to calculate the replacement cost value of your home to determine how much coverage to pay for.

You will therefore need to calculate your replacement cost value based on the total square footage of your house, along with all features in your home and its construction materials.

When deciding how much coverage you need, consider the following:

1. Dwelling coverage – It is important that the replacement cost coverage for your home considers current inflation for construction materials and labor so you don’t face a shortfall when suffering a covered loss.
2. Other Structures – These include detached garages, sheds, gazebos, in-ground swimming pools and even doghouses.
3. Your personal belongings – Your furniture, clothes, electronics, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disasters. The coverage is generally 50 to 70% of the dwelling insurance you have on the structure of the house.
4. Loss of use/additional living expenses – This pays the additional costs of living away from home if you cannot live there due to damage from a an insured disaster. It covers hotel bills, restaurant meals and other costs, over and above your usual living expenses, incurred while your home is being repaired or rebuilt.
5. Liability protection – Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. Liability coverage also provides no-fault medical coverage, so if a friend or neighbor is injured in your home, they can simply submit medical bills to your insurance company.

What Does $350k In Dwelling Coverage Really Cover?

$350,000 in coverage means that this is the maximum amount that your insurance company will pay out to you, in the case of a loss.

Comprehensive homeowners insurance should address:

• Dwelling Coverage – Protects the physical structure of your home against covered perils.​
• Personal Property Coverage – Safeguards your belongings, such as furniture and electronics.​
• Liability Protection – Covers legal expenses if someone is injured on your property.​
• Additional Living Expenses (ALE) – Pays for temporary housing and related costs if your home becomes uninhabitable.

A regular HO3 policy has various levels of coverage, but it also has several exclusions. They include the following:

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

While this is the case, riders can be added to cover some of the excluded items.

Earthquake Damage

You won’t be covered for earthquakes under a regular HO3 policy. The good news is you can add Earthquake Insurance to have protection for their residence and belongings.

Flood Damage

Let’s look at rainwater. Homeowners Insurance will cover damage caused by water that falls from the sky. It will cover the majority of hurricane damage without requiring a wind rider or an add-on deductible.

But you won’t be covered from any damage caused by water rising from the ground. You will need to purchase Flood Insurance to be covered.

Does a $350,000 Home Need Replacement Cost Coverage?

You have heard the saying that a car loses value the moment it’s driven off the lot. You can say the same thing, more or less, about a house. The moment the keys are passed from the seller to the buyer, the home starts to lose value. The depreciation isn’t as profound with a house as with a car, but it’s there nonetheless.

When looking for home insurance, you need to look at replacement cost vs. actual cash value. Here is the difference between the two:

Actual Cash Value (ACV): When you buy a house, you pay $350,000. As your home gets older, it loses value. When you file a claim a decade later, it might be worth $320,000. This is its ACV.

Replacement Cost Value (RCV): When you buy a house, you pay $350,000. When you file a claim a decade later, you will get the full $350,000. So, even though there’s depreciation, you will still get the full value of your home. That is its RCV.

There are some add-ons to replacement cost value – Guaranteed and Extended Replacement cost. Guaranteed will cover rebuilding your home to the original home’s specifications. Extended will factor into the equation home value inflation. A home that cost $350K to build may cost $425k to build now. It is designed for people who live in disaster-prone regions like Tornado Alley.

How To Get Home Insurance For A $350,000 House

Buying home insurance doesn’t need to be a difficult experience. We understand you’re researching insurance coverage for a $350,000 house, and we have recommended you get quotes from at least three insurance companies. For the purposes of this guide, we’ll assume you’ve already done so. What follows is a look at the  next steps to take:

Compare your quotes

Don’t assume that the lowest quote is the best option. Compare apples to apples rather than apples to oranges. When you look at the fine print and see what each policy includes, you’ll be better prepared to select the right policy.

Look at options

Cash value vs. replacement cost will impact your premium. It can also help down the road if you experience a total loss and must replace your home.

Explore discounts

If your homeowners insurance provider also insures vehicles, one option is to have both of your policies under one company. You can get a price cut on both policies. Where you are employed can also offer benefits, as can the groups you’re a member of. Going paperless or paying for homeowners insurance annually rather than monthly can also save you money.

Work With An Insurance Professional

It’s possible to conduct much of the process online, but there’s still much benefit you can get by speaking with a live agent. The agent can help you get the right coverage and recommend discounts that you might otherwise have missed out on.

How To Save On Homeowners Insurance For A $350,000 House

There are ways to save money on home insurance, and that’s one reason you should speak to a live agent. They can look for discounts that lower your premium. We looked at going paperless and bundling, but there are other ways you can save money.

Where You Live

If your home is in a low-crime region, your monthly premium will be less than if your home is in a high-crime area.

Putting In Security Cameras

Installing security cameras can deter criminals and give you a discount on your home insurance.

Your Credit Score

Insurance companies look at your credit rating to set your Homeowners Insurance rate, so you can get a better premium with a better credit score.

Construction Code

If your residence is up to code or you’ve retrofitted it for storms, you can get a price cut on your house insurance.

Deductible And Coverage Limits

Reducing your policy limits can lower your premium.

Factors That Affect the Cost Of Homeowners Insurance

We mentioned previously that location plays a major role in homeowners insurance cost. Continue reading to learn about other things that will impact the cost of your coverage.

Weather

Living in the Gulf Coast, tornado alley, or earthquake country areas can influence the cost of home insurance. You might need a rider for certain coverages.

Age Of The House

How old is your house? A newer home will be cheaper to insure than an older one. Chances are a newer how is more up to code and has a tile roof rather than composite shingles.

Building Materials

What your home is constructed out of will influence house insurance cost. Whether your home is made from wood and sheetrock or brick and mortar, the materials can translate into paying more or less than average.

Proximity To Fire Hydrant

The closer your house is to a fire hydrant, the less your house insurance will be.

Other things that can influence your insurance premium are the population in your community, state laws, and marital status.