How Much Does Home Insurance Cost for a $150,000 House?


Updated: May 22, 2024

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Homeowners insurance for a $150,000 house, with dwelling coverage set at $250,000, costs an average of $2,423 per year. While you can buy a policy with exactly $150,000 in coverage, opting for slightly higher limits ensures your home remains covered even after renovations or additions. Evaluate your needs properly by understanding how rates can change based on your coverage choices, insurers, deductibles and location.

How Much Is Homeowners Insurance on a $150,000 House?

The average cost of home insurance for a $150,000 home is $2,423 per year. This is for a policy with $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and a $1,000 deductible.

Opting for $100,000 in dwelling coverage might be more affordable at around $1,342 per year, but this may not adequately cover reconstruction expenses after a disaster, potentially resulting in out-of-pocket costs. While getting exactly $150,000 in coverage might be tempting, remember that it’s best to account for potential upgrades and increased material expenses by getting higher coverage. These limits are what are commonly offered by insurers. Still, some providers may offer in-between limits at request. For instance, if you need $125,000 in coverage, you might be able to ask your insurer.

$100K Dwelling / $50K Personal Property / $100K LiabilityAverage Annual Premium$1,342
$250K Dwelling / $125K Personal Property / $200K LiabilityAverage Annual Premium$2,423

How Much Homeowners Insurance Is on a $150,000 House by Dwelling Coverage

If your home costs $150,000 to rebuild, opting for an insurance policy with higher dwelling limits of $250,000 costs an average of $2,423 per year. Your dwelling coverage directly impacts premium rates, as this is what pays to reconstruct your home if it gets destroyed in an accident, covering expenses for the materials and labor.

If you anticipate renovating or adding to your home in the coming year, it’s best to consider getting higher limits. However, higher limits can result in higher premiums. For instance, $1 million in coverage averages approximately $7,652 annually, whereas opting for $100,000 in coverage costs about $1,342 per year.

To properly estimate your homeowners insurance costs, see the table below for a comprehensive view of how dwelling coverage adjusts according to home value.

$100K Dwelling / $50K Personal Property / $100K LiabilityAverage Annual Premium$1,342
$250K Dwelling / $125K Personal Property / $200K LiabilityAverage Annual Premium$2,423
$500K Dwelling / $250K Personal Property / $300K LiabilityAverage Annual Premium$4,137
$750K Dwelling / $375K Personal Property / $500K LiabilityAverage Annual Premium$5,878
$1MM Dwelling / $500K Personal Property / $1MM LiabilityAverage Annual Premium$7,652
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Rates updated:

Jul 12, 2024

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How Much Homeowners Insurance Is on a $150,000 House by Company

Rates for homeowners insurance can vary considerably based on the insurance company you select. Nationwide, for instance, has an average annual cost of around $2,432 for a policy with 250/125/200K limits. In contrast, State Farm offers a more budget-conscious option at an average of $1,490 per year.

These disparities arise from insurers' distinct risk assessments, claims histories and available coverage options. It's wise to compare home insurance providers to secure the most suitable and cost-effective home insurance for your individual needs. The upcoming table showcases how premiums shift based on providers with 250/125/200 coverage.

State FarmAverage Annual Premium$1,895
FarmersAverage Annual Premium$2,135
USAAAverage Annual Premium$2,143
AllstateAverage Annual Premium$2,399
NationwideAverage Annual Premium$2,432

How Much Homeowners Insurance Is on a $150,000 House by Deductible Amount

Your choice of deductible can impact your premiums — for example, a policy with a $500 deductible costs an average of $2,641 per year, while a policy with a $2,000 deductible expenses an average of $2,163 per year. The deductible is the amount you agree to pay out of pocket before your insurance kicks in. Typically, higher deductibles result in lower monthly premiums. It's a trade-off between immediate costs and long-term savings.

Refer to the table below for a visual of how premiums adjust based on deductibles for the 250/125/200 coverage.

$500Average Annual Premium$2,641
$1000Average Annual Premium$2,423
$1500Average Annual Premium$2,299
$2000Average Annual Premium$2,163

How Much Homeowners Insurance Is on a $150,000 House by State

Where you reside plays a crucial role in determining your homeowners insurance expenses. This is due to various factors, including geographical vulnerabilities, climate dynamics and local influences. For instance, for a policy with $250,000 in dwelling coverage, Oklahoma’s annual average is $5,917. In Hawaii, the most affordable state, the average is $454 annually — a difference of $5,463 annually.

The table below will comprehensively illustrate how premiums shift based on your geographic location for the 250/125/200 home insurance coverage.

Data filtered by:Results filtered by:
State:
State:
AlabamaAverage Annual Premium$4,123
AlaskaAverage Annual Premium$1,522
ArizonaAverage Annual Premium$1,991
ArkansasAverage Annual Premium$4,023
CaliforniaAverage Annual Premium$1,148
ColoradoAverage Annual Premium$3,320
ConnecticutAverage Annual Premium$2,288
DelawareAverage Annual Premium$975

How Much Coverage Do You Need for a $150,000 Home?

Getting enough home insurance for a $150,000 home depends entirely on your personal situation, as your coverage level should account for your home's value, rebuilding costs and available funds.

Dwelling Protection

Dwelling coverage safeguards your home's physical structure. Your coverage should ideally match the expense of rebuilding your home after a calamity. If rebuilding from scratch would cost around $200,000, your dwelling coverage should reflect this amount.

Coverage for Belongings

Personal property coverage handles damage to items within your home, such as furniture, electronics and jewelry. To gauge the necessary coverage, create an inventory of belongings and estimate replacement costs. This sum becomes your personal property coverage. Sometimes, insurers automatically set this at 50% of your dwelling coverage.

Exploring Additional Protection

Home insurance includes various types of supplementary coverage beyond dwelling and personal property:

  • Liability
  • Medical
  • Other structures

These forms of coverage often correlate with your dwelling coverage limit.

Factors That Impact Home Insurance Costs

Home insurance costs are influenced by a variety of factors that reflect the unique characteristics of your property and your circumstances. Understanding these factors can help you make informed decisions about your coverage. Here are some key considerations:

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    Location

    The geographic area where your home is situated plays a significant role in determining your insurance premiums. High-risk regions prone to natural disasters or crime might lead to higher rates, while safer areas could result in lower costs.

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    Discounts

    Having security systems, multiple policies with the same insurer or being claims-free for a certain period can make you eligible for discounts that can help reduce your insurance costs.

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    Claims History

    A history of claims on your property can affect your premiums. Homes with frequent claims may be considered risks, leading to more expensive insurance costs.

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    Credit Score

    In some states, your credit score can be used to determine your insurance rates. A lower credit score might result in higher premiums.

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    Coverage Limits and Deductibles

    The amount of coverage you choose and your deductible also impact your costs. Opting for higher coverage limits or lower deductibles can lead to higher premiums, while lower coverage limits or higher deductibles can lower costs.

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    Personal Information

    Details such as your age, marital status and whether you have pets can also influence your insurance rates, as they can indicate potential risks.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.