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

min read
Updated: 14 March 2024
Written by
Jeff Bray
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Many people see homeownership as one component of the American Dream – and that’s the case for individuals and families. It’s also a rite of passage for many young adults who are starting to make their way in the world and make big decisions. One of those decisions, when the time comes to buy a home, is Homeowners Insurance. But with so many options out there, how do you get the right one?

You’ll want a policy that covers your home from the foundation to the roof. In other words, you’ll want full coverage. 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.

Key Takeaways

  • Homeowners Insurance premiums are determined by insurers’ judgment on the odds of you filing a claim. So, insurers consider the risk factor.

  • States and cities have their own specific risks that influence Homeowners Insurance policy rates. Risks can include things like earthquakes, floods, fires, and crime.

  • Homeowners can safeguard their residences from risks by understanding their houses, knowing the particular risks in the area they live, and getting the right Homeowners Insurance coverage for them.

How Much Is Homeowners Insurance on A $350,000 House?

Homeowners can expect to pay $1,570 annually for Homeowners Insurance on a $350,000 home. That works out to $130.83 monthly. Your premium will be a function of the coverage amount and your policy structure.

There are various factors that insurance companies look at when structuring your premium:

Your deductible: After an event that requires filing a claim, you’ll have to pay a portion of the expense before the insurer steps in and covers the rest. The amount you have to pay is the deductible. The higher your deductible, the lower your premium. The lower your deductible, the higher your premium.

Where you live: Your address will also be a factor. Is your are known as a high-crime zone or a fire zone? If the answer is “yes” to either, your premium may be higher as a result. There are various ways to lower costs – more on that later.

Claims history: Have you filed claims before? Like car insurance, your monthly rates may be higher if you have a lot of damage claims.

You may not be the issue: Even if you haven’t had to file for claims, neighborhood crime might cause insurance rates to rise.

Cost Of Homeowners Insurance by State

One of the main factors for the cost of Homeowners Insurance is your location. You might pay $32 monthly in Hawaii for a house worth $250,000 and $304 monthly for the same coverage on a $250,000 home in Oklahoma. It really is about location, location, location.

For that same $250,000 residence, here’s a look at premiums in other U.S. states.

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

Most expensive states

Keeping things in perspective, let’s stick with the example of a $250,000 house. We’ve already seen that the highest Homeowners Insurance rates in the country are in Oklahoma at around $304 per month. Other expensive states include the following:

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

Cheapest states

Let’s examine the cheapest states for Homeowners Insurance for a $350,000 house. Hawaii has the lowest rates starting at around $32 per month. Other low-cost states for Homeowners Insurance include 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 home, it’s essential to insure it for the full valuation. It’s likely that the lender will insist that you do so. Insurers often offer quote-based increments of $100,000 or sometimes even $50,000.

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. 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.

Cost Of Homeowners Insurance 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 Do You Calculate Your Home Insurance Needs For a $350,000 House?

You need to know certain particulars about your home regardless of whether you’ve lived there a short time or a long time. A home insurance policy is the most important insurance coverage you can get since it can cover you if you experience a loss. There are some vital things to consider prior to buying a Homeowners Insurance policy.

  1. The home itself – This coverage ensures you’re compensated if you suffer a covered incident.
  2. What you own – Your personal possessions if they’re lost or stolen.
  3. What if I can’t live in my home? – This component of your insurance will cover living costs during the period you can’t live in your home during the rebuild stage.
  4. Other buildings around your home – These include structures on your property like the garage, shed, or even doghouse.
  5. What if someone gets hurt at my house? – This section covers costs if someone is injured on your property. It will cover liability and medical expenses.

Considering factors like the one above will give you an indication of your target policy needs and help you decide if $350,000 is enough insurance for your residence.

What Do You Need to Cover in A $350,000 Home?

We mentioned it before, but let’s look at it in more detail. What kind of coverage do you need for a $350,000 home? 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.

Collective Facts: If you have collectibles, it’s vital to know your Homeowners Insurance might not cover these items. That means you might have to buy an add-on policy to cover your family heirlooms, artwork, and other collections.

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 My $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.

Talk to a live individual

While it’s possible to seek home insurance online, you should work with a live agent. A live agent can help you get sufficient coverage and help you find discounts you might otherwise miss.

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.

FAQs

What is the cheapest state for $350,000 homeowner insurance?

Based on our review, Vermont is the cheapest state to buy homeowner insurance in.

Is it hard to get Homeowners Insurance on a $350,000 house?

Buying Homeowners Insurance for a $350,000 home isn’t hard. It starts with finding a service provider that covers your area. After filling out applications for quotes, you’ll want to ensure you’re comparing apples with apples. An HO1 policy is cheaper than an HO3 policy, for instance, so compare quotes with that factor in mind.

What isn’t covered by Homeowners Insurance?

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

What does Homeowners Insurance cover?

A Homeowners Insurance policy, specifically an HO3, covers the home, other structures like a garage or shed, personal property, living expenses if you are displaced, and personal liability if someone gets injured on your property.

What are the most expensive states for $350,000 Homeowners Insurance?

Oklahoma, Kansas, and Nebraska are among the costliest states to get home insurance. These states are in Tornado Alley. But there are things you can do to lower your premium. You can buy a brick home or install storm shutters or shatterproof glass.

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