How Much is Homeowners Insurance on a $200,000 House?

When you buy your first home, it’s important to budget not only for all of the expenses you’ll face during the sale, but also for the ongoing expenses that come with homeownership. Home insurance is a major expense, and it can be tricky to figure out how much you’ll need to set aside if you’ve never owned a home before. So, how much is home insurance on a $200,000 house, and how can you make sure you’re financially prepared to buy a home?

How Much Is Home Insurance on a $200,000 House?

According to an analysis performed by Forbes, the average home insurance for a $200,000 home is $1,150 per year. That figure refers to dwelling coverage only, meaning any specialty coverages, like flood insurance, will be in addition to those costs.

The average cost of home insurance can vary significantly depending on several factors. For example, the state in which you live can have a tremendous influence on your insurance costs. Forbes found that the average cost of $200,000 in dwelling coverage was $633 in Maine, but $1,334 in Florida. Factors like the threat of natural disasters in your states can cause insurance companies to increase their premiums to cover the increased risk of insuring your home.

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What Other Factors Affect Home Insurance Costs?

The average cost of home insurance is a good starting point, but many other elements can also impact your rates:

Age of your home: Older homes usually cost more to insure, since older systems, like electrical or plumbing systems, could potentially damage the home.
Security features: If your home has security features like video cameras and a security system, insurance companies may offer you a discount.
Claims history: Insurance companies review your claims history when you apply for coverage. If you have a history of filing multiple claims, companies may charge a higher premium because they view you as a greater risk to insure.
Endorsements: Endorsements are extra coverage options that you can buy to enhance your insurance coverage. For example, water backup coverage is a popular endorsement that helps protect your home from water damage, which traditional insurance companies don’t typically cover.

How to Save on Home Insurance Costs

There are many ways you can save on your home insurance costs.

Consider a higher deductible: If you choose a policy with a higher deductible, you’ll pay lower premiums. Just remember that you’ll need to be prepared to pay that deductible if you have to file a claim.
Upgrade your home: If you upgrade your home with features like a new roof, you may be eligible for a discount on your home insurance. Contact your insurance provider ahead of time to see if your upgrade would qualify and to be sure you follow any requirements.
Shop around: Insurance rates can vary significantly between different insurance providers. You can get free homeowners insurance quotes online today to start exploring coverage options and to find the best rates.

Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.