How Much Is Homeowners Insurance On A $150,000 House In 2022?

Figuring out how much is homeowners insurance on a $150,000 house isn’t too hard and in this post we will review how to calculate your needs and how to get coverage for your home.

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.

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.

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.

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: