If you're buying a $150,000 home, you will need to buy homeowner's insurance before you can go to the closing table.
It can seem overwhelming but it doesn't have to be.
The truth is that figuring out how much is homeowners insurance on a $150,000 house isn't too hard.
In this post we will review how to calculate your needs and how to get coverage for your home.
How Much Is Homeowners Insurance On A $150 000 House?
So, just how much is homeowners insurance per month on a $150,000 home in 2024?
We found that the average monthly cost of homeowners insurance is $109.00 per month or $1,308 per year. Of course, that doesn't mean that everyone's home insurance will cost the same amount. The cost depends entirely on where you live and the plan that you purchase.
Rounding up to $200,000 for ease of use, we find that a dwelling that costs $200,000 with a $1,000 deductible and a $300,000 liability coverage has an average $833 premium in the outer suburbs of Los Angeles, California.
THE SIMPLY INSURANCE WAY
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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.
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Coverage in minutes.
You can get home insurance coverage within minutes of getting your quotes and applying.
How Do You Calculate Your Home Insurance Needs?
Much like the cost of living, a homeowners insurance estimate cost also varies widely depending on the state where you live. Areas with regularly-occurring natural disasters will have higher premium rates to offset the risk of property damage.
The easiest way to calculate your specific homeowner's insurance needs is by using our annual home insurance calculator. It's a simple insurance tool we created so that you can find out roughly how much homeowners insurance you would need to have on a 150,000 house in 2024.
Homeowners Insurance By State And Neighborhood
For example, the most expensive state for homeowners insurance is Louisiana, which comes in with an average annual premium of $1,967. Louisiana routinely faces tropical storms and hurricanes that can damage homes.
By contrast, the cheapest state for homeowners insurance is Oregon—a state with considerably fewer natural disasters—with an average annual premium of $659. If you’re considering buying a home, think carefully about where you’ll be living.
Even if the cost of living in your area is cheaper, the homeowners insurance may be pricier due to the year-round risk of natural disasters, such as flooding and tornadoes. However, homeowners insurance costs also vary within states.
A search for homeowners insurance for a $200,000 home with a $1,000 deductible and $300,000 liability in Eureka, California comes out to a $725 premium.
Homeowners Insurance By Company
However, not all insurance companies charge the same rates, which poses another problem: which insurance company to use when purchasing homeowners insurance.
For example, AIG charges an average annual premium of $3,564, while Travelers charges only $1,415.
It's important to read your insurance policies closely and consider what each plan is offering—and whether their coverage justifies higher rates.
Some companies may offer costlier plans due to more personalized coverage, whereas others may be cheaper because they won’t cover many natural disasters or homes with previous insurance claims.
You’ll also want to keep in mind your deductible, which is the amount that you must pay out of pocket before the insurance company will pay out a settlement on your claim.
Deductibles also vary by company, but most insurance policies require a $500 or $1,000 minimum deductible. If you pay a deductible higher than $1,000, that may save you money on the coverage policy long-term.
Homeowners Insurance Costs by Policy Limit
Each home insurance policy comes with its own coverage limit, which is the maximum threshold for coverage—essentially, the maximum amount that the company will pay when you file a claim.
This limit can start as low as $100,000, but the Insurance Information Institute (III) recommends that you purchase a policy that offers between $300,000-$500,000 in maximum coverage.
If you choose an insurance policy with a higher limit, that will likely come with higher annual premium rates.
INSURANCE WHERE YOU LIVE
Home insurance by state.
What Things Do You Need To Cover In A $150,000 Home?
Homeowners' insurance covers you in case of property damage resulting from theft, a natural disaster, a fire, and certain other events as detailed in the insurance policy.
There are usually three types of coverage included in standard homeowners insurance policies:
However, many insurance companies do not cover all types of natural disasters.
For example, despite the threat of earthquakes in California, standard homeowners insurance in the state does not cover earthquake damage.
You will need to purchase a separate policy if you want earthquake coverage.
Does a $150,000 Home Need Replacement Cost Coverage?
One of the last things you need to keep in mind when purchasing homeowners insurance is replacement cost coverage.
Your home’s replacement cost value (RCV) covers how much money it would take to replace your home if it were destroyed or damaged today.
Replacement cost coverage differs from actual cash value coverage (ACV), which covers your home based on the initial market value of your house at the time of purchase—minus depreciation.
Another common policy is guaranteed or extended replacement cost coverage, which goes beyond restoring your home to its original condition.
Under this policy, the insurer will pay whatever amount it takes to reconstruct your house, even if it costs more than the home's actual market value.
The insurer will usually pay this extra cost by reimbursing you for up to 10-25% above your policy limit, which could be anywhere from $110,000 to $125,000 if you purchase a policy with a $100,000 limit.
Extended replacement cost coverage can protect you in case the cost of construction goes up suddenly in your area due to a natural disaster.
Many homeowners insurance policies will offer all of the above options, but it’s up to you to decide which one makes the most sense for your long-term plans.
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.
How to Get Home Insurance for My $150,000 House?
You can click here to get a few rates and get started, or 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 we would recommend either Hippo or Lemonade. Once you know how much coverage you need it’s super easy to get started.