Your home is where you spend most of your time. Get peace of mind knowing you’ve protected it with homeowner’s insurance.
While you have plenty of options to choose from, the right policy protects at a reasonable price.
The median house price in the U.S. is slightly more than $300,000, as of March 2020. The question becomes, “How much is homeowner’s insurance on a $300K home monthly?”
Here is everything you need to know to pick the right policy for your home.
How Do You Calculate Your Home Insurance Needs?
There is no standard way to calculate your home insurance needs. You can use an online calculator, hire an appraiser, or use your previous policy's coverage limits as a starting point.
The best option for your money might just be calculating it yourself.
Calculating your home insurance coverage offers the most control over the process. The formula is home square footage x price to build per square foot in your town = coverage limit.
You should already know your home’s square footage, though you can find that information on real estate websites, such as Redfin, Zillow, and Realtor.com.
The cost of building in your town is trickier. Contact a local contractor or builder for an estimate. They’ll need information about the style and construction of your house to provide an accurate figure.
Note that this formula is an estimate, not an immutable number. It doesn't take home renovations or improvements into consideration, which may increase your limit.
If you want a more precise estimate, make a home inventory.
A home inventory involves calculating the value of your personal belongings. Go room by room as you review the prices of significant items, such as electronics and furniture.
Record the values in at least two places, such as a notepad and cloud document, for safekeeping.
Creating a home inventory takes approximately an hour. While it's easiest to do when you're moving between residences, you can calculate your belonging's value at any time.
Here's a step-by-step guide to creating a home inventory for your insurance policy:
THE SIMPLY INSURANCE WAY
Home Insurance made easy.
Agents not required.
Get quotes and sign up online without talking to an agent. But, we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.
Coverage in minutes.
You can get home insurance coverage within minutes of getting your quotes and applying.
What Things Do You Need to Cover in a $300,000 Home?
Most people think of homeowner’s insurance on a 300k home as a form of physical protection.
The policy indeed covers structures from fires, floods, lightning, and other outside damage, It also protects your possessions.
Suppose that a fire destroys part of your living room, including the furniture and electronics.
Personal property protection ensures you receive the necessary compensation to replace or repair those items.
Some of the other belongings it covers include:
Does a $300K Home Need Replacement Cost Coverage?
Replacement cost coverage is the amount of money to replace an object or structure to its pre-loss state. For instance, if your home burns down, the replacement cost would reflect the price of rebuilding.
The goal is that policyholders don't have to spend extra money replacing items, and insurance companies don't worry about intangibles.
Replacement cost coverage is a worthwhile investment for homes of any price. The policy, also known as standard replacement cost, provides compensation up to your dwelling limit.
As a rule of thumb, most policies have a limit of 30% of the dwelling coverage.
Another option is extended replacement cost coverage or guaranteed replacement cost, which compensates you for a specified percentage over the limit.
The operative word here is "guaranteed," so you get as much money as you need to rebuild. There is no cap, unlike the standard policy that goes up to a specific limit.
INSURANCE WHERE YOU LIVE
Home insurance by state.
How Much Is Homeowner’s Insurance on a $300K Home?
The uninformative, but true answer is that it depends. It depends on the likelihood of a natural disaster. It depends on the value of your possessions and the cost of rebuilding.
Perhaps the most important consideration, though, is where you live.
Homeowners in the Great Plains and Gulf Coast tend to pay more for insurance than people living along the coast.
These regions are vulnerable to hurricanes, flooding, and tornados, which drives up the average annual premium.
For instance, the average price of homeowner’s insurance is the highest in Oklahoma at $4,445 while people in Hawaii pay the least, at $499.
The national average for homeowner’s insurance in 2020 is $2,305.
That means home insurance on a $300K home works out to about $200 monthly.
Homeowners can expect to pay somewhere between $1,500 to $3000 annually for their policy.
Again, these are ballpark estimates, so make sure to calculate your home’s policy for yourself.
How to Get Home Insurance for My $300,000 House?
You can check rates across the top home insurance companies based on the type of insurance coverage you need.
If you need the most comprehensive amount of coverage fast then I would recommend either Hippo or Lemonade.
After you get a quote, both of these companies have an instant and online process that allows you to get covered within minutes.
THE SIMPLY INSURANCE WAY
Home Insurance made easy.
Agents not required.
Get quotes and sign up online without talking to an agent. But, we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.
Coverage in minutes.
You can get home insurance coverage within minutes of getting your quotes and applying.
Taking Action
A home is the most significant asset most people will ever have.
Buying homeowner’s insurance gives you the protection and peace of mind you need for that valuable possession.
While policy costs vary from state to state and home to home, most people can expect to pay $1,500 to $3000 annually.
There is no need to wait around if you need coverage click here or on one of the above buttons to get stated.
If you have any remaining questions about homeowner’s insurance on a $300K home, leave us a comment below.
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