How much is homeowners insurance on a $600,000 home?

How much is homeowners insurance on a $600,000 house?

The national average cost of homeowners insurance on a $600,000 house (based on $600,000 in dwelling coverage) is $4,677 a year, but this is just an average.

Coverage	Average annual premium	Average monthly premium
$600k dwelling, $300k liability, $1,000 deductible	$4,677	$390

Pricing varies from state to state, so your ZIP code will play a huge role in determining what you pay for coverage.

EXPERT TIP: Home insurance rates are based on the replacement cost of your house, not its market value. If you paid $600,000 for your home, that doesn’t mean that’s the replacement cost.

“The market value of the home is irrelevant,” Wells says.

Other factors like the deductible and liability limits you choose also matter. In most states, insurers also look at your credit score. Poor credit is statistically correlated to a higher likelihood of filing a claim, so you’ll pay more for homeowners insurance.

Someone with a poor credit rating can pay up to 50% to 90% more than a person with an excellent credit rating.

Homeowners insurance for a $600k home by state

The state you live in is one of the biggest factors in home insurance rates on your $600k house. Your ZIP code plays a huge role in insurance companies' calculation of your risk profile, taking into consideration weather and natural disaster trends in that area as well as claims history.

For example, in Connecticut, the average cost for $600,000 of dwelling coverage is $3,765 per year. In Kentucky, the same amount of coverage costs $6,142 a year.

Take a look at the table below to see the average rates in each state for a $600,000 house.

Average cost of home insurance with $600,000 dwelling coverage by state
State	Average annual premium	Monthly premium	Hurricane deductible
Alabama	$5,499	$458	2%
Alaska	$2,779	$232	None
Arizona	$4,494	$375	None
Arkansas	$7,736	$645	None
California	$2,598	$217	None
Colorado	$6,890	$574	None
Connecticut	$3,765	$314	2%
Delaware	$2,474	$206	2%
Florida*	$9,637	$803	2%
Georgia	$4,080	$340	2%
Hawaii	$1,154	$96	None
Idaho	$3,427	$286	None
Illinois	$5,135	$428	None
Indiana	$5,381	$448	None
Iowa	$4,392	$366	None
Kansas	$8,805	$734	None
Kentucky	$6,142	$512	None
Louisiana	$7,078	$590	2%
Maine	$2,510	$209	2%
Maryland	$3,028	$252	2%
Massachusetts	$2,755	$230	2%
Michigan	$4,203	$350	None
Minnesota	$4,308	$359	None
Mississippi	$6,181	$515	2%
Missouri	$6,425	$535	None
Montana	$5,949	$496	None
Nebraska	$9,227	$769	None
Nevada	$2,707	$226	None
New Hampshire	$2,032	$169	2%
New Jersey	$2,634	$220	2%
New Mexico	$5,138	$428	None
New York	$3,489	$291	2%
North Carolina	$5,593	$466	2%
North Dakota	$5,213	$434	None
Ohio	$3,802	$317	None
Oklahoma	$10,415	$868	None
Oregon	$3,019	$252	None
Pennsylvania	$3,200	$267	2%
Rhode Island	$3,327	$277	2%
South Carolina	$4,846	$404	2%
South Dakota	$6,247	$521	None
Tennessee	$5,353	$446	None
Texas	$6,804	$567	2%
Utah	$2,876	$240	None
Vermont	$2,147	$179	None
Virginia	$4,120	$343	2%
Washington	$2,801	$233	None
Washington, D.C.	$2,384	$199	2%
West Virginia	$3,271	$273	None
Wisconsin	$2,711	$226	None
Wyoming	$3,703	$309	None

Calculate the cost of homeowners insurance for a $600,000 house

The calculator below will help you estimate the cost of $600,000 in dwelling coverage for a house in your area.

$600k homeowners insurance calculator

Average home insurance rates on 600K house in Texas

Most & least expensive ZIP codes for homeowners insurance in Texas

Most expensive
Least expensive

ZIP code	City	Highest rate
77550	Galveston	$10,164
77586	El Lago	$9,906
77551	Galveston	$9,536
77554	Galveston	$9,358

ZIP code	City	Lowest rate
78559	Iglesia Antigua	$1,956
78593	Santa Rosa	$1,999
79915	El Paso	$2,008
79905	El Paso	$2,009

Read our methodology

Best homeowners insurance for a $600,000 house

Based on a combination of rates, National Association of Insurance Commissioners (NAIC) complaint index and AM Best Financial strength ratings, Amica comes out on top as the best home insurance company for a $600,000 home.

See how major insurance companies ranked below.

Best homeowners insurance companies for a $600,000 house
Company	AM Best	NAIC	Average annual premium	Insurance.com rating
Amica	A+	0.329	$3,331	4.86
Auto-Owners	A+	0.478	$3,480	4.76
State Farm	A++	1.014	$3,614	4.63
Erie Insurance	A+	0.536	$4,035	4.57
Allstate	A+	1.317	$3,254	4.51
American Family	A	1.099	$4,032	4.23
Progressive	A+	0.446	$6,082	3.97
Nationwide	A	1.004	$5,190	3.91
Farmers	A	0.807	$6,258	3.66
Travelers	A++	0.883	$7,824	3.39
USAA	A++	0.43	$3,982	4.74

Cost of homeowners insurance on a $600,000 house by liability limits

The amount of liability coverage you purchase affects your rates. The more coverage you buy, the higher the cost. However, increasing your liability coverage only results in a slight increase in rates. Experts recommend purchasing at least $300,000 to $500,000 in liability coverage as there won’t be a huge price difference.

Take a look at the table below to see what home insurance costs for different liability amounts.

Company	$600,000, $1,000 deductible, $100,000 liability	$600,000, $1,000 deductible, $300,000 liability
State Farm	$3,563	$3,614
Farmers	$6,216	$6,258
Allstate	$3,224	$3,254
USAA	$3,982	$3,982
Nationwide	$5,147	$5,190
Travelers	$7,780	$7,824
Progressive	$6,073	$6,082
Erie Insurance	$4,015	$4,035

What does homeowners insurance on a $600k house cover?

Homeowners insurance has different coverage sections for any home, whether it’s worth $600,000 or $100,000. If your home has a replacement cost of $600,000, that will be the dwelling coverage amount. Your other structures and personal property coverages are a percentage of that amount, so it’s important to get it right.

These are the coverages on a standard policy and what they protect:

Dwelling coverage. Coverage A on your home policy, this is the coverage that pays to repair or rebuild your home and any attached structures. It should equal the replacement cost of your home.
Other structures. Coverage B on your policy protects detached structures such as fences, garages and sheds.
Personal property. Coverage C protects the contents of your home and also covers your personal property off-premises.
Additional living expenses/Loss of use. Coverage D provides coverage for a place to live if your house is being repaired and is uninhabitable due to a covered loss.
Liability. Coverage E covers liability when you are responsible for injuries to others or damage to their property.

Standard home insurance policies include replacement cost coverage, not actual cash value, which “is depreciated value,” Wells says, “which is never enough to rebuild or replace. Adequate replacement cost coverage will leave you without an undue burden after a loss.”

You may also want to look into flood insurance, as it’s not included with standard home insurance. Additional coverage, such as earthquake or windstorm insurance, can be added as well.

Homeowners insurance for a $600,000 home by credit rating

The average cost of home insurance with $600,000 in dwelling coverage and $300,000 in liability with a $1,000 deductible is $3,986 if you have excellent credit. Poor credit drives that average up to $14,637.

Take a look at the table below. You can see that a person with an excellent credit rating pays significantly less than someone with a poor credit score. Insurers see a poor credit score as a type of financial risk, as it predicts that you are more likely to file a claim.

Average cost of a $600,000 homeowners insurance policy based on credit
Credit tier	$600,000 dwelling, $100,000 liability	$600,000 dwelling, $300,000 liability
Excellent	$3,966	$3,986
Fair	$6,711	$6,746
Good	$5,159	$5,185
Poor	$14,572	$14,637

Calculating homeowners insurance for a $600,000 house (and how much coverage you need)

To calculate how much homeowners insurance you need for a $600,000 house, you first have to understand how home insurance is calculated.

If you paid $600,000 for your house, that doesn't translate to the amount of insurance you need
Instead, you need to calculate your insurance needs based on the replacement cost of the home.

“You need replacement cost coverage, which is enough insurance to rebuild the home the way it was,” Wells says.

Insurance companies calculate the replacement cost of your home using complex tools that include dozens of factors.

“Your insurance agent and carrier have tools to estimate replacement cost on the home. Ideally, you want to insure for 100% of replacement cost, minus the deductible you can comfortably afford,” Wells says.

EXPERT TIP: The amount of insurance you need changes over time. Inflation and changes in the cost of repairs can impact the cost of rebuilding your home. Your insurer will review this at each renewal and likely increase your coverage as needed.

When you request a quote, give as much detail as possible to get the coverage correct. Remember that it may be more or less than what you paid for the home.

Factors affecting the cost of home insurance on a $600,000 home

There are several factors that affect the cost of homeowners insurance. They include:

The location. “Location of the home is a big one because weather can cause a lot of losses,” Wells says. If you live in “tornado alley” or a flood zone, look to pay much higher home insurance costs than other areas.
The construction type and size of the home. “The type of construction is also very important,” Wells says. This is especially important in areas where wildfires are increasing in frequency, scope and size, like California or Hawaii. “A wood frame house is much more susceptible to total fire loss than a brick home.”
The amount of coverage. More coverage means higher rates.
Your claims history and the claims history of the property. Another thing to consider is that if someone who lived in the house prior filed claims, that will factor into your home insurance costs. Insurance companies look at the claims history of not just the policyholder but also the property itself.
Your credit history. Most states allow insurance companies to use credit when calculating home insurance rates. Poor credit indicates a higher risk of filing a claim.

How to save on homeowners insurance for a $600k home

There are a few ways to save on your homeowners insurance regardless of how much it’s worth or the amount of dwelling coverage you need:

Consider increasing your deductible if you can afford it.
Ask about discounts. “Talk to your agent about discounts available, such as for smoke alarms and security systems,” Wells says.
Look into bundling your home and auto insurance with the same carrier.
Keep your credit score in good shape.
Keep up with the general maintenance on your home. Do a walk-around every season and take care of the little items before they become big ones. Trim trees and note roof and siding issues.
Shop around for the best rates, especially if you have less than desirable claims history or credit score. While one carrier might be expensive, you may find more favorable rates with another.
Don’t file a claim unless you really need to. Claims can increase rates.
Review your policy annually to ensure you have the right coverage, are taking advantage of all discounts and aren’t being charged for anything in error.

FAQ: Homeowners insurance for a $600k home

Is replacement cost coverage mandatory for a $600k home?

Yes, most likely your mortgage company will require you to carry replacement cost coverage. If you carry less than 80% of your home’s replacement cost, your insurer may pay a reduced amount if you file a claim.

Is it hard to find home insurance on a $600,000 house?

Insuring a $600,000 house isn’t difficult unless you have a poor credit history or if the home is in a severe-weather zone. In certain states, homeowners insurance is becoming increasingly expensive due to climate-related weather changes. For instance, finding insurance in certain parts of California can be challenging because of the wildfires. Florida has similar challenges in hurricane and flood zones.

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