How Much Is Homeowners Insurance on a $150K House?

The average annual cost of homeowners insurance for a $150,000 home is $1,294.

Amy Beardsley
Written byAmy Beardsley
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Amy BeardsleyInsurance Writer
  • 3+ years writing about auto, home, and life insurance

  • 7+ years in personal finance and technology

Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.

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Danny Smith
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Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Mark Friedlander
Reviewed byMark Friedlander
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Updated January 1, 2024 at 4:00 PM PST

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Various factors affect the cost of your home insurance, especially your home’s dwelling coverage limit. Your insurance premiums are based on your home's replacement cost value, not its purchase price or current market value. For example, insuring a home with $300,000 replacement cost coverage runs about $2,143 per year, while a home with a $500,000 dwelling coverage limit costs about $3,284.

In this article, you’ll learn the cost of homeowners insurance on a $150,000 house by state, how to calculate your coverage needs, factors that affect costs, and strategies to estimate and reduce your premiums.

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How much is home insurance on a $150,000 house?

On average, homeowners spend around $1,294 annually on insurance for a $150,000 house, according to Insurify data. The rate can swing higher or lower depending on several factors, such as your home’s location, style, age, and construction costs to rebuild. The specific insurance company you choose also affects the cost of your premiums.

Here’s a breakdown of the average monthly homeowners insurance rates for a home with a $150,000 dwelling coverage limit from various companies to give you a clearer picture of what you might expect to pay.

Insurance CompanyAverage Monthly Cost
Westfield$790
Erie$795
Travelers$965
Chubb$967
United P&C$971
American Family$973
Armed Forces Ins Exchange$991
ASI$1,031
State Farm$1,064
Allstate$1,081
USAA$1,100
Farmers$1,100
Nationwide$1,111
Foremost$1,113
Auto-Owners Insurance Co$1,128
Allied$1,345
Metropolitan$1,495
Encompass$1,542
COUNTRY Financial$1,714
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.

Average home insurance cost by state

Home insurance rates vary significantly across states due to factors like local weather patterns, crime rates, insurance laws, and construction costs. States facing frequent natural disasters, such as tornadoes, hurricanes, and wildfires, generally experience higher insurance premiums.

For example, Florida is the most expensive state for home insurance, with average annual premiums of $5,153 for a home with a $150,000 replacement cost value, likely due to its hurricane risk and many areas having a National Risk Index of “very high” or “relatively high.” Meanwhile, with its lower risk factors, Maine enjoys the lowest average annual premium, at $638 for a home with a $150,000 dwelling limit.[1]

Below, you’ll see the average cost of homeowners insurance for $150,000 in dwelling coverage in each state.

StateAverage Monthly Cost
Alabama$1,958
Alaska$752
Arizona$1,025
Arkansas$1,785
California$796
Colorado$1,976
Connecticut$975
Delaware$707
Florida$5,153
Georgia$1,299
Hawaii$710
Idaho$736
Illinois$1,149
Indiana$1,125
Iowa$1,166
Kansas$1,956
Kentucky$1,377
Louisiana$2,568
Ma$638
Maryland$932
Massachusetts$1,012
Michigan$991
Minnesota$1,289
Mississippi$2,187
Missouri$1,540
Montana$1,039
Nebraska$2,112
Nevada$712
New Hampshire$740
New Jersey$719
New Mexico$1,570
New York$1,141
North Carolina$1,236
North Dakota$1,388
Ohio$797
Oklahoma$2,903
Oregon$723
Pennsylvania$808
Rhode Island$1,036
South Carolina$1,632
South Dakota$1,535
Tennessee$1,388
Texas$2,382
Utah$665
Vermont$536
Virginia$885
Washington$746
Washington, DC$711
West Virginia$872
Wisconsin$781
Wyoming$1,130
Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.

How much coverage do you need for a $150K house?

Determining the right amount of coverage for a house with a $150,000 replacement cost value is crucial for financial protection. If your policy limits are too low, your policy may not cover the total cost of rebuilding, leaving you to pay the difference out of pocket. But coverage isn’t based on the market value of your home — you must consider the cost of rebuilding your home in the event of total loss.

Typically, dwelling coverage should be enough to rebuild your home at current market rates. But dwelling coverage is only the beginning. A standard homeowners policy has four coverage types:

  • Dwelling coverage: The core of your policy is dwelling coverage, paying the cost to repair or rebuild your home. Policies may also include structures not attached to your home, such as detached garages, fences and sheds.

  • Personal property coverage: Your belongings inside the home, like furniture, electronics, and clothing, require separate coverage.

  • Liability protection: Liability protection can pay legal fees and damages if someone gets hurt on your property.

  • Additional living expenses (ALE): ALE, also called "loss of use," covers temporary living costs if your home is uninhabitable after a disaster.

Here’s a table showing the average monthly cost of home insurance for $250,000 and $500,000 of dwelling coverage based on the age of the house:

Home Age$250K Coverage Amount$500K Coverage Amount
Four years$1,854$3,562
14 years$2,520$4,840
24 years$2,875$5,522
54 years$3,003$5,768
84 years$3,013$5,787
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

How to estimate your homeowners insurance costs

Your home’s location, size, age, and construction type can help you estimate homeowners insurance premiums. The best way to estimate how much you might pay is to use a home insurance calculator. It walks you through property details and personal coverage needs to give you an estimated insurance cost. To get a more accurate calculation, however, it's a good idea to consult with your insurance agent to ensure you have adequate replacement cost coverage.

Factors that affect home insurance rates

Different elements of your home and property influence the cost of your policy. Understanding what they are can help you make informed decisions about coverage and potentially lower your premiums.

These are some key factors insurance companies consider when setting rates:[2]

  • Location, age, and condition: Insurance cost depends on your home’s location, especially if it’s in a disaster-prone or high-crime area. Older homes or those needing repairs can face higher premiums due to the potential for risk and higher repair costs, meaning regular home maintenance can positively affect your insurance rate.

  • Type of construction: The type of construction and materials used affect your home’s resistance to damage. Durable materials and specific construction methods can reduce the risk of damage, potentially lowering your premiums.

  • Proximity to fire services: Homes near fire stations often have lower rates. If you’re closer, you’ll likely have a quicker response time in emergencies, reducing the risk and severity of fire damage.

  • Policy deductible: A higher home insurance deductible can reduce premiums, making regular insurance payments more affordable. However, this choice requires you to pay a larger sum out of pocket in the event of a claim. It’s crucial to weigh the benefit of lower ongoing costs against the possibility of higher expenses during a claim when choosing a deductible. Homes in hurricane-prone areas typically have a separate windstorm deductible that's 1% to 5% of the dwelling coverage limit.

  • Premium discounts: Insurers often provide discounts for various reasons, such as installing security systems, bundling policies, or making annual payments instead of monthly. These discounts can offer substantial savings on your overall insurance costs.

  • Coverage amount: The type of coverage and limits of your home insurance policy directly affect homeowners insurance quotes. Choosing more comprehensive protection or higher coverage limits typically means paying higher rates.

  • Credit and claims history: Insurers often consider your credit history and past insurance claims when determining rates. A good credit score and clean claims record can lead to more favorable home insurance costs.

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How to lower your homeowners insurance costs

Lower homeowners insurance costs are possible through a few strategic approaches. Understanding and applying these methods can reduce your premiums without sacrificing coverage.

Here are some different ways to save on your homeowners insurance policy:

  • Increase your deductible. Higher insurance deductibles can lead to paying less for premiums. It means you’ll pay more if you file a claim, but it reduces your regular insurance payments.

  • Improve home security. Security systems, smoke detectors, and fire alarms in your home can drop your premiums significantly. Insurance companies often apply discounts for homes that are better equipped to prevent theft, fire, and other risks since it reduces the likelihood of costly claims.

  • Bundle insurance products. Many insurance companies offer discounts when you bundle home insurance with other policies, such as auto insurance. It can simplify your insurance management by having coverage with one company while also leading to savings on your overall coverage costs.

  • Review and update your policy regularly. Reviewing your policy ensures you’re not underinsured, but it can also make sure you’re not paying for coverage you no longer need. Adjust your protection to match your current situation, like changes in your home’s value or personal belongings, to potentially pay less for coverage. It's important to ensure your policy's dwelling coverage limit reflects current replacement costs in your area.

  • Shop around and compare quotes. Don’t settle for the first quote you get. Shopping around and comparing prices from different insurers can help you get the best deal. Insurance companies balance risk differently, so prices can vary significantly for the same level of coverage.

Insurance on a $150K home FAQs

Understanding homeowners insurance for a $150,000 house can raise several questions, especially if you’re buying a home for the first time or considering a policy change. Here are answers to common questions to give you confidence when looking at policies.

  • What is the 80% rule in homeowners insurance?

    The 80% rule in homeowners insurance suggests that a policy should cover at least 80% of the home’s replacement value.[3] Your mortgage lender may require it, but it also protects against the risk of being underinsured, which can lead to your insurer not covering the full cost of damage.

  • What does homeowners insurance cover?

    A homeowners policy typically covers damage to both the interior and exterior of your house, personal property in case of theft or damage, and liability for injuries to others that happen while on your property.

  • What isn’t covered by home insurance?

    Homeowners insurance covers a lot, but it doesn’t cover everything. It generally excludes flood and earthquake damage, normal wear and tear, and intentional damage. For protection against floods and earthquakes, you’ll need to purchase separate policies.

    Flood insurance is available through the federally backed National Flood Insurance Program, or from dozens of private insurers. You can typically add earthquake coverage as an endorsement to your home policy, although in California it's separate coverage offered through the California Earthquake Authority.

  • Does the location of your $150K house affect the price of homeowners insurance?

    Yes. The location of your $150,000 home plays a big role in how much you pay for coverage. Higher rates are common in areas with natural disaster risks, high crime rates, or limited access to fire services.

  • How frequently should you expect to make payments for homeowners insurance on a $150K house?

    Most home insurance companies give you the flexibility to choose between annual or monthly payments. Your payment frequency depends on the options your insurer offers and what aligns best with your financial circumstances.

Methodology

Insurify’s team of data scientists analyze millions of home insurance quotes and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.

Sources

  1. National Risk Index. "Map." Accessed November 21, 2023
  2. Department of Financial Services. "Homeowners Insurance: Understanding What Affects the Cost of Insurance." Accessed November 21, 2023
  3. Michigan Department of Insurance and Financial Services. "Homeowners Insurance Replacement vs Repair Cost Policies." Accessed November 21, 2023
Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

Featured in

media logo
Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

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