If you're buying a home, you'll likely need to purchase homeowner's insurance.

Homeowners insurance protects you in the event of a natural disaster, fire, home burglary, or other unexpected events by providing compensation for eligible property damage.

how much is homeowners insurance on a 150,000 house

How Do You Calculate Your Home Insurance Needs?

Homeowners Insurance by State and Neighborhood

Much like the cost of living, homeowners insurance also varies widely depending on the state where you live.

Areas with regularly-occurring natural disasters will naturally have higher premium rates to offset the risk of property damage.

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.

This amount contrasts with the $833 premium for a home of the same price in the suburbs of Los Angeles.

Even within cities, properties may have higher or lower premium rates depending on the neighborhood.

Neighborhoods that have higher theft rates might also have higher premium rates due to the greater perceived risk of property damage.

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.

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 $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:

  • Dwelling (your physical residence)
  • Personal Property/Belongings
  • Liability (to cover lawsuits for property damage or injuries that guests may sustain on your property)

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.

cost of home insurance on 150k house

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.

INSURANCE WHERE YOU LIVE

Home insurance by state.

How Much is Homeowners Insurance on a $150,000 Home?

Just how much is homeowners insurance on a $150,000 house in 2020? 

According to a report by the National Association of Insurance Commissioners, the average annual premium cost of home insurance in the U.S. is $1211.

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.

Using a standard home insurance calculator, you can find out roughly how much homeowners insurance you would need on a 150,000 house in 2020.

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.

That may not seem too bad. 

However, a $200,000 house with the same deductible and liability coverage in Creola, Alabama, costs a whopping $3,388. 

Even if you lower the coverage limit to $100,000, your premium will still cost $3,351.

How to Get Home Insurance for My $150,000 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 we 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.

Take Action

If you have been looking to buy homeowners insurance there is no better time than now.

The best way to determine the average cost of homeowners insurance in your state is to use our home insurance calculator to get a better understanding of your needs.

Once you know how much coverage you need it’s super easy to get started.  You can click here to get a few rates and get started.


Sa El

About the author

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 12 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. He is also an Official Member of the Forbes Finance Council, a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 11 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. He is also an Official Member of the Forbes Finance Council, a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

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