8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Homeowners insurance is essential for protecting your home and personal belongings.
The annual cost to insure a $200,000 home can range from $600 to more than $8,000, but your price will vary depending on your location, the level of coverage you choose, your home’s features, your claims history, and even your credit history.
Here’s a closer look at those cost factors and your coverage options to help you get the best homeowners insurance for your needs.
How much is insurance for a $200,000 house?
Nationwide, the average annual premium for homeowners insurance on a $200,000 home is $1,782. Most homeowners pay for insurance as part of their monthly mortgage payment. This money goes into an escrow account your lender uses to pay the annual premium on your behalf. But when you purchase a home, you may need to pay the first year’s premium up front as part of your closing costs.
Some of the cheapest homeowners insurance companies include Westfield, Grange, and Hastings Mutual Insurance Company, but rates vary by state and policy details. Below is a table with the 10 cheapest homeowners insurance companies and their average home insurance costs for homes worth $200,000.
Insurance Company
▲▼
Average Annual Premium
▲▼
Grange
$856
Westfield
$969
Hastings Mutual Insurance Co
$987
Erie
$1,006
Unitrin
$1,136
Amica Mutual
$1,151
AIG
$1,215
American National P&C
$1,277
American Family
$1,307
West Bend Mutual
$1,323
Cincinnati Insurance
$1,330
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Average cost of home insurance on a $200,000 house by state
Home insurance rates vary from state to state due to factors like local weather patterns, the frequency of natural disasters, and the cost of building materials in the area.
For example, Florida is the most expensive U.S. state in terms of average homeowners insurance cost because it’s prone to hurricanes. Homebuyers in Louisiana tend to pay higher premiums for the same reason. On the other side of the spectrum, Maine and Vermont are low-cost states because severe weather events are less common.
Below is a table showing the average annual home insurance rate for a $200,000 homeowners insurance policy by state.
State
▲▼
Average Annual Premium
▲▼
Alabama
$3,008
Alaska
$886
Arizona
$1,536
Arkansas
$2,550
California
$1,359
Colorado
$2,985
Connecticut
$1,323
Delaware
$894
District of Columbia
$887
Florida
$8,064
Georgia
$1,786
Hawaii
$806
Idaho
$1,230
Illinois
$1,602
Indiana
$1,422
Iowa
$1,597
Kansas
$2,527
Kentucky
$1,859
Louisiana
$4,636
Maine
$972
Maryland
$1,293
Massachusetts
$1,405
Michigan
$1,484
Minnesota
$1,751
Mississippi
$3,119
Missouri
$1,995
Montana
$1,379
Nebraska
$2,930
Nevada
$919
New Hampshire
$914
New Jersey
$952
New Mexico
$2,389
New York
$1,634
North Carolina
$1,592
North Dakota
$1,888
Ohio
$1,029
Oklahoma
$3,981
Oregon
$942
Pennsylvania
$968
Rhode Island
$1,504
South Carolina
$2,254
South Dakota
$1,838
Tennessee
$1,865
Texas
$3,207
Utah
$1,063
Vermont
$673
Virginia
$1,221
Washington
$1,088
West Virginia
$1,063
Wisconsin
$1,083
Wyoming
$1,532
What homeowners insurance covers
Homeowners insurance isn’t a legal requirement, but most mortgage lenders will require you to maintain a home insurance policy during your loan term as part of your mortgage loan agreement.
The most common type of homeowners insurance policy is the HO-3, which provides broad coverage for your home, belongings, and personal liability.
Other policy types offer varying levels of coverage. For example, the HO-1 — the most basic home insurance policy available — limits coverage to specific perils named on the policy.
Dwelling coverage protects the structure of your home — including the walls, roof, and attached fixtures — from perils like fire, hail, or vandalism. Coverage is based on the cost to rebuild your home.
Other structures coverage
Other structuresinsurancecovers detached structures like garages or sheds, typically up to 10% of your dwelling coverage amount.
Personal property coverage
Personal property coverage protects your belongings, like furniture, electronics, and clothing — usually up to 50%–70% of your dwelling coverage amount. Special limits may apply to high-value items.
Liability coverage
Liability insurance covers legal and medical expenses if someone is injured on your property or you accidentally damage someone else’s property.
Additional living expenses coverage
Loss of use coverage pays for temporary housing and other costs if your home becomes uninhabitable due to a covered event.
Medical payments coverage
Medical payments insurancecovers minor medical expenses for guests injured on your property, regardless of fault.
A standard homeowners insurance policy doesn’t cover damage caused by earthquakes or floods. You may need to buy a separate policy if you live in a high-risk area.
How much coverage do you need for a $200,000 home?
How much home insurance coverage you need depends on the cost of rebuilding the home — not just your home loan amount or the home’s market value, which also includes the price of the land. Carrying enough coverage to rebuild the house protects you financially in the event of a total loss.
Typically, your insurance agent will recommend a coverage limit for the structure of your home. But you can get an idea of how much coverage you need by multiplying the total square footage of your home by the average per-square-foot building costs in your area. Your local real estate agent or builder’s association can provide this information.
You may need higher limits if your home has special features like arched windows or fireplaces, which increase rebuilding costs.[2]
Factors that affect the cost of home insurance
A number of factors influence the cost of homeowners insurance, including:[3]
Location: It typically costs more to insure homes in areas prone to severe weather events like hurricanes, tornadoes, or wildfires. Local crime rates and proximity to emergency services also affect pricing.
Age and condition: Older homes and those in poor condition often cost more to insure because of outdated wiring, roofs, or construction materials that increase the risk of damage. Newer homes built to current safety standards may qualify for discounts.
Coverage amounts: The more coverage you need for your dwelling, personal property, and liability, the higher your home insurance premium.
Deductible: Your deductible is the amount you’ll pay out of pocket after a claim. Choosing a higher deductible can lower your premium.
Credit: In some states, insurers can use your credit history as a factor when determining your premiums. Poor credit often leads to higher rates because insurance companies see you as more likely to file claims.
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How to save on homeowners insurance
Saving on homeowners insurance doesn’t have to mean sacrificing coverage. Here are a few strategies to reduce your monthly payment:
Bundle policies. Many insurance companies offer discounts if you bundle your home insurance with other policies, like auto or life insurance.
Improve home safety features. Installing smoke detectors, security systems, or deadbolt locks can qualify you for discounts by reducing your home’s risk of damage or theft.
Ask about other discounts. Insurance companies may offer discounts for being claims-free or being part of specific professional groups.
Maintain good credit. Since your credit affects premiums in many states, improving your credit can lower your insurance costs.
Compare quotes. Shop around and compare quotes from multiple insurance companies. Rates can vary significantly, even for the same insurance coverage, so it pays to explore your options.
Homeowners insurance on a $200,000 home FAQs
It can be confusing to decide how much home insurance you need and how to secure a policy. Here’s some additional information to help you better understand how policies and premiums work.
What is the 80% rule in homeowners insurance?
The 80% rule states your policy should cover at least 80% of your home’s replacement cost. If you buy a lower coverage amount, your insurance company may reduce the payout after a claim, leaving you responsible for a larger portion of your repair costs.
How much is the average homeowners insurance premium?
The national average cost of homeowners insurance for a $200,000 home is $1,782 per year. But homeowners insurance rates can vary based on location, coverage levels, credit, and home characteristics.
How can you get an estimate for homeowners insurance on a $200,000 property?
To get an estimate, contact multiple home insurance companies for quotes. You’ll need to provide details like your address, home age, construction, square footage, and desired coverage limits. Some insurance companies may offer online tools to provide quick estimates.
Does the location of your $200,000 home affect your premiums?
Yes. Your ZIP code is a major factor affecting your premiums. Homes in areas prone to severe weather, like hurricanes, tornadoes, or wildfires, or in areas with a high crime, rate tend to be more expensive to insure. Homes in safer areas and those with nearby fire hydrants and fire stations are usually cheaper to insure.
Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.
Janet has been a contributor at Insurify since October 2022.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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