Homeowners insurance costs are never the same for everyone. Multiple factors influence how much you’ll pay for homeowners insurance on a $150,000 home, including the location, style, age of the property, how you’ll use the home, what’s inside, and how much protection you want.
The insurer you choose and how you assess your home’s level of risk will also affect your home insurance costs, so it’s important to compare quotes to find the best insurance rates available to you. credible makes it easy to view quotes from multiple homeowners insurance providers.
- how much does homeowners insurance cost?
- factors that affect the cost of homeowners insurance
- where to get $150,000 homeowners insurance
- how to save on $150,000 homeowners insurance
- homeowners insurance frequently asked questions
How much does homeowners insurance cost?
In a nutshell, there is no straight answer to this question.
The cost of property insurance on any home varies based on the factors listed above, with location being one of the most impactful. the price you would pay for coverage on your home in one state, or even in a specific area of the city, could differ greatly from a different state or neighborhood.
For example, the average premiums for basic housing and personal property coverage for a $150,000 home are about $1,413 a year, nationwide, according to the National Association of Insurance Commissioners (NAIC). In Arizona, however, the average annual premium on the same house would be $336, while in Idaho and Alaska it would be only $263.
On the other hand, insuring that same $150,000 home with the same basic coverage would cost you an average of $1,470 in Tennessee. That’s almost six times what you’d pay in Idaho or Alaska.
Premiums vary from state to state for many reasons, including:
- the risk of natural disasters, such as hurricanes, tornadoes, forest fires or earthquakes
- the local price of replacement building materials
- the regional labor costs
- crime rates
No matter what the average cost of homeowners insurance is where you live, comparison shopping can help you find the best possible price for the coverage you need.
With credible, you can compare home insurance rates in minutes.
factors that affect the cost of homeowners insurance
When it comes to creating (and pricing) a homeowners insurance policy on any home, insurance companies consider many important factors. These factors tend to fall into three general categories: household-related, political-related, and personal.
Here’s why some of these factors are important and how they might affect your annual premiums on a homeowners insurance policy.
factors related to the home
First, an insurance company will usually take into account the specifics of your home. this allows the carrier to properly estimate the risk posed by your property and how much it would cost to repair, replace, or rebuild after an eligible claim.
Location: Average rates vary from state to state, with expensive states performing well above average and cheaper states costing much less. But each insurance company uses their own proprietary calculations that can take into account your specific city, county, and even neighborhood. and whether your home is in a rural, suburban, or urban area will also affect premiums.
Age: The year a home was built can affect your insurance premiums in different ways. for example, a newer home will have newer components (roof, foundation, plumbing, electrical) that are less likely to fail and result in a covered loss.
but a newer home may have been built with improved materials or using newer construction techniques, and may cost more than an older property. an older home may have components with more wear, architectural features that are difficult to replicate, or components that would be expensive to replace. this could also increase replacement construction costs.
Size: It stands to reason that the larger a home, the more it will cost to insure. This is because a larger home would likely cost more in materials and labor to repair or rebuild after a loss, regardless of its market value. all other factors being equal, a $150,000 home that is 900 square feet will generally have lower insurance premiums than a $150,000 home that is 3,000 square feet.
Claim history: Insurance companies care about reducing risk. If you’ve made a claim against your homeowners insurance in recent years, this could negatively affect your premiums in the future, at least until enough time has passed. Likewise, if you move into a home that has had a significant claim before you own it, that history can also affect your premium going forward.
Structures: Additional structures on your property mean more opportunities for a claim, so you can expect your home insurance premiums to increase as well. Coverage for structures often includes attached garages, sheds, decks, a swimming pool, guest house, or gazebo.
how home renovations affect your homeowners insurance premiums
factors related to politics
The next set of factors that affect cost focus on the actual policy you create: your specific coverage options, limits, and even the company you choose to buy the policy from.
Coverage limits: It is imperative to have enough coverage to protect your home. but you also want to balance your coverage limits with your budget and needs. the higher your coverage limits, the more you can expect to pay in premiums. conversely, the lower your coverage limits, the lower your premiums are likely to be.
You’ll need to choose both a dwelling coverage limit (protecting your home, related structures, and any permanent fixtures or appliances) and personal belongings coverage (for things you own, like furniture, electronics, and clothing). that are inside your house).
You may also be able to opt for additional protections, such as loss of use coverage (in case your home is damaged and you can’t stay there until repairs are completed). all of these options will contribute to your cost of home insurance.
Deductible: Your deductible is the portion of your loss that you will be responsible for paying before your insurance coverage kicks in. The higher your deductible, the less your insurer will have to pay: therefore, the lower your premiums can be. In fact, raising your deductible from $500 to $1,000 could save you up to 25% on your premiums, according to the Insurance Information Institute.
Discounts: If you qualify, discounts can make your homeowners insurance policy more affordable. Different companies offer different discounts that can lower premiums, including discounts for multiple policies, for having certain security features installed in your home (security systems, smoke detectors, sprinkler systems, etc.), and even discounts based on occupation or affiliation.
Carrier/Insurer: As with any consumer product, you’ll likely get a different price from each company you compare. Each company has its own rates, discounts, risk calculations, and coverage options, so you can pay to get quotes from at least a few to find the best possible price.
With credibility, you can compare quotes from various home insurance providers.
Finally, here are some important personal factors that companies can take into account when calculating the cost of your homeowners insurance.
Credit: Believe it or not, insurance companies often consider your credit history (and credit score) when determining premiums. Insurers may view a good credit history as an indication that you are taking care of your obligations. on the other hand, a bad credit history can signal to an insurance company that you might be at higher risk.
Lifestyle: Some lifestyle choices can affect your homeowners insurance premiums as they may pose additional risk to your insurance company. these include having specific dog breeds, insuring certain types of personal property, or having additional risk factors (such as a trampoline or trampoline) on your property.
where to get homeowners insurance for a $150,000 house
Finding homeowners insurance coverage on a $150,000 home can be a relatively simple search. many national and regional companies offer policies for houses of this value. you’ll just have to shop around to find a company that not only sells policies in your area, but also offers the best possible premiums.
However, it’s not enough to find operators in your state; you’ll need to make sure they cover your specific location. for example, some insurance companies may insure homes in central areas of the state, but refuse to write policies near a high-risk coastline.
Consider asking which carrier your friends, family, and neighbors use. You can also see if any of their other companies (car insurance, life insurance, etc.) write homeowners policies in your area, then shop around to find the lowest prices and best coverage options.
how to save on homeowners insurance for a $150,000 house
Cutting your homeowners insurance costs can be a great way to save money all year long. Here are some easy ways to lower your premium costs:
- lower your coverage limits. The less coverage you buy, the lower your premiums will be. Your limits should be high enough to cover the property’s replacement costs and coverage required by your mortgage lender, if applicable, but not so high that you pay for coverage you don’t need.
- raise your deductible. The higher your deductible, the more you’re willing to pay for a claim. insurance companies will lower your premiums in return. just make sure your emergency fund is big enough to cover that deductible if you have to file a claim.
- keep your credit in check. A good credit history can indicate that you manage your finances well, while a bad credit history can indicate the opposite. try to keep your credit healthy to keep premiums as low as possible.
- bundle your policies together. You can often save by buying homeowners coverage from a provider you already have a policy with. Find out if your auto, life, or personal property insurer offers homeowners insurance and, if so, if it offers a bundle discount.
- Look for discounts. See what discounts you qualify for, whether it’s based on your household characteristics, your occupation and affiliations, or even your level of education. all of this can save you money.
- insure your home. if it helps protect your home, it can lower your premiums. adding certain features or protections, like interior sprinklers, a more durable roof, a security system, new smoke detectors, or a fence around the pool, can mean a lower price.
- check out before buying . Before you buy a homeowners insurance policy, shop around and get prices from multiple companies. this will give you an idea of the best possible rates and what coverage options you should choose before committing.
credible makes it easy to compare home insurance rates to find the coverage that best fits your needs.
Frequently asked questions about homeowners insurance
While the cost of homeowners insurance can vary widely, some questions about homeowners insurance are common. Here are answers to some frequently asked questions about homeowners insurance.
What does homeowners insurance cover?
Depending on the coverage options you choose, homeowners insurance can cover everything from minor repairs and damage to completely rebuilding your home in the event of a total loss. You can also protect all your belongings with actual cash value coverage, less depreciation.
Most policies also provide medical payments coverage, in case someone else is injured on your property. you may also need to purchase liability protection.
What does homeowners insurance not cover?
Homeowners insurance does not cover normal wear and tear on your home or any type of property negligence. Depending on your location and policy, your coverage may also exclude things like damage from floods, hurricanes, mold, and more.
How much home insurance do I need?
The amount of homeowners coverage you need depends on your mortgage lender’s requirements (if any), as well as your budget and the type of risk you can afford.
Consider purchasing enough coverage to at least rebuild your home (at current labor and material costs) if it is destroyed, as well as any belongings you don’t want to pay to replace out of pocket.
what are the most expensive states for home insurance?
texas and tennessee are among the most expensive states for homeowners insurance, according to naic data. the risk of damage from extreme weather conditions, such as tornadoes, hail and hurricanes, contribute to higher premiums in both states.
Which states have the lowest homeowners insurance rates?
according to naic data, the cheapest states for homeowners insurance are alaska, arizona, idaho, nevada, and wisconsin.