How Much Is Homeowners Insurance on a $400,000 House? (2025)

The average cost to insure a $400,000 home is $3,278 per year.

Anna Baluch
Written byAnna Baluch
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Anna BaluchInsurance Writer
  • 4+ years writing insurance and personal finance content

  • MBA from Roosevelt University

Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.

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Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
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Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Various factors affect how much you’ll pay to insure a home, including the value of your home, your location, the level of coverage you choose, and the insurance company you select. In general, the higher your dwelling coverage amount, the more expensive your home insurance premiums will be.

Here’s what you need to know about home insurance prices for $400,000 homes to find a great deal on coverage and avoid overpaying.

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Cost of insurance on a $400,000 house

The annual cost of dwelling coverage on a $400,000 house is $3,278, on average. Because the cost of home insurance varies by company, it’s a good idea to shop around and compare all your options.

The table below shows the average cost of a home insurance policy on a $400,000 house from various home insurers.

Insurance Company
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Average Annual Premium
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Westfield$1,365
Unitrin$1,581
Grange$1,783
Hastings Mutual Insurance Co$1,872
AIG$2,052
Erie$2,075
American Family$2,062
Cincinnati Insurance$2,306
USAA$2,375
Foremost$2,828
State Farm$2,567
Armed Forces Ins Exchange$2,583
Travelers$2,819
Pure Companies Grp$2,674
ASI$2,919
Allstate$3,029
Auto-Owners Insurance Co$3,054
Nationwide$3,233
Grange Mutual$3,543
Allied$3,684
Farmers$3,782
Encompass$3,839
Chubb$4,082
Universal Ins Co Of N. America$4,202
Hanover$5,795
Metropolitan$6,141
Country$5,836
Shelter$7,703

Average cost of home insurance on a $400,000 house by state

Your state and ZIP code have a significant effect on your homeowners insurance premium and monthly payment. Your location plays a role due to varying crime rates, severe weather conditions, natural disasters, rebuilding costs, and proximity to fire departments. These main factors all affect how likely you are to file a home insurance claim.

Here’s a look at the average annual cost of home insurance for a $400,000 house by state.

State
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Average Annual Premium
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Alaska$1,470
Alabama$5,445
Arkansas$4,490
Arizona$3,012
California$2,424
Colorado$5,984
Connecticut$2,600
Delaware$1,619
Florida$1,607
Georgia$14,140
Hawaii$3,528
Iowa$1,548
Idaho$3,201
Illinois$2,408
Indiana$3,088
Kansas$2,574
Kentucky$4,556
Louisiana $3,294
Massachusetts$10,964
Maryland$2,382
Maine$2,206
Michigan$1,641
Minnesota$3,038
Missouri$3,524
Mississippi$3,403
Montana$4,809
North Carolina$2,204
North Dakota$3,233
Nebraska$3,712
New Hampshire$4,725
New Jersey$1,556
New Mexico$1,674
Nevada$4,460
New York$1,743
Ohio$2,732
Oklahoma $1,851
Oregon$7,762
Pennsylvania$1,617
Rhode Island$1,695
South Carolina$2,779
South Dakota$4,017
Tennessee$3,596
Texas$3,247
Utah$6,005
Virginia$2,037
Vermont$2,162
Washington$1,208
Washington, D.C.$1,854
Wisconsin$1,892
West Virginia$1,656
Wyoming$2,268

How much coverage do you need for a $400K house?

The type of coverage you choose will affect your insurance premium for a $400,000 house. Here are the most common types of home insurance products:

  • illustration card https://a.storyblok.com/f/162273/150x150/41b171a645/types-of-houses-96x96-orange_026-mansion.svg

    Dwelling coverage

    Dwelling coverage pays for damage to the structure of your home, as well as any structures attached to it, such as a garage, porch, or deck.

  • illustration card https://a.storyblok.com/f/162273/100x100/32ed42213e/personal-property.svg

    Personal property coverage

    Personal property coverage pays for the value of damaged or stolen personal belongings, like electronics or furniture.

  • illustration card https://a.storyblok.com/f/162273/100x100/e5213a7025/loss-of-use.svg

    Loss of use coverage

    Loss of use coverage reimburses you if you can’t live in your home during repairs following a covered peril.

  • illustration card https://a.storyblok.com/f/162273/x/abffe6238f/financial-protection.svg

    Personal liability coverage

    Personal liability insurance protects you financially if you or a family member cause property damage or bodily injury to someone else.

  • illustration card https://a.storyblok.com/f/162273/150x150/24aa72b68a/healthcare-and-medical-96x96-yellow_045-stethoscope.svg

    Medical payments coverage

    Medical payments insurance can come in handy if someone has an injury on your property and faces medical bills.[1]

  • illustration card https://a.storyblok.com/f/162273/150x150/f4287230a5/climate-change-96x96-blue_013-flood.svg

    Flood insurance

    Flood insurance, which you can buy from a private insurer or the National Flood Insurance Program (NFIP), covers flood damage your property sustains.

  • illustration card https://a.storyblok.com/f/162273/x/a0c151e1ba/accidental-tearing-apart-cracking-etc.svg

    Earthquake insurance

    Earthquake insurance pays for damage that comes from an earthquake.[2]

Factors that affect home insurance rates

Here’s an overview of the factors that affect what you’ll pay for home insurance coverage:

Square footage

The more square footage your home has, the higher your home insurance rates will generally be. Larger homes cost more to repair or rebuild because labor and material costs are higher. A bigger home represents more risk to your homeowners insurance company than a smaller dwelling.

Home age

It can be expensive to replace certain features or construction materials on older homes. That’s why home insurance companies usually charge higher premiums for older homes with higher construction costs.

The table below shows how much home insurance might cost for a $400,000 house by home age.

Home Construction Year
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Average Annual Premium
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1940$4,702
1970$4,686
2000$4,487
2010$3,933
2020$2,894

Proximity to fire stations

Since fire is one of the significant perils homeowners insurance protects your house from, anything that reduces the risk of a fire occurring can help reduce your home insurance costs.

For example, if you live close to a fire station or fire hydrant, you may earn cheaper home insurance rates because firefighters can get to your home faster and extinguish a fire. Property fires caused approximately $23 billion in damages in 2023, according to the National Fire Protection Association.

Level of coverage

Several types of home insurance policies are available.

HO-3 policies are the most common, but they offer less coverage than some other options. Generally, HO-3 policies pay claims at actual cash value — meaning what your personal property is worth minus depreciation. But that may not be enough to fully replace, repair, or rebuild your damaged property.

An HO-5 policy provides broader coverage and typically provides replacement cost value for covered claims. But HO-5 policies generally cost more than HO-3s.

Claims history

Your claims history is also an important factor insurers consider when determining your homeowners insurance rates. You’ll likely face more expensive rates if you’ve filed many claims in the past for home damage.

Credit rating

Most states allow insurance companies to consider credit information when setting home insurance rates.

Insurers can use information in your credit file, like payment history, credit usage, and recent credit applications, to generate a credit-based insurance score. That score estimates how likely you are to file a claim. Generally, the better your credit history, the more likely you are to qualify for lower home insurance rates.

Location

Your ZIP code and neighborhood can influence your home insurance premiums. If you live somewhere that’s more prone to a natural disaster, like a hurricane, or has a higher crime rate, you can expect more expensive home insurance costs.

The following table illustrates how location within a state can affect home insurance costs.

State
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Most Expensive ZIP Code
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Cost
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Least Expensive ZIP Code
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Cost
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Alaska99705 (North Pole) $1,35299801 (Juneau) $1,073
Alabama36532 (Fairhope) $8,25136830 (Auburn)$2,774
Arkansas72450 (Paragould)$3,80972764 ( Springdale) $3,279
Arizona85032 (Phoenix)$2,70985383 (Peoria)$2,084
California90011 (Los Angeles) $2,52592154 (San Diego)$1,656
Colorado80918 (Colorado Springs)$5,33280526 (Fort Collins)$3,955
Connecticut6511 (New Haven)$2,5776010 (Bristol)$1,707
Delaware19958 (Lewes)$1,70719808 (Wilmington)$975
Florida33012 (Hialeah)$18,36532218 (Jacksonville)$4,245
Georgia30349 (Atlanta)$3,19630004 (Alpharetta)$2,529
Hawaii96720 (Hilo)$1,16696818 (Honolulu)$1,164
Iowa51503 (Council Bluffs)$3,20052001 (Dubuque)$2,263
Idaho83402 (Idaho Falls)$1,93983709 (Boise)$1,818
Illinois60618 (Chicago)$2,94560565 (Naperville)$2,284
Indiana46227 (Indianapolis)$2,35647909 (Lafayette)$1,850
Kansas67801 (Dodge City)$4,71566049 (Lawrence)$3,015
Kentucky40214 (Louisville)$2,95440356 (Nicholasville)$2,316
Louisiana70065 (Kenner)$14,46871111 (Bossier City)$4,197
Massachusetts2740 (New Bedford)$2,22101201 (Pittsfield)$1,527
Maryland21215 (Baltimore)$2,27121740 (Hagerstown)$1,592
Maine04011 (Brunswick)$1,34104901 (Waterville)$1,233
Michigan48214 (Detroit)$4,27448103 (Ann Arbor)$1,800
Minnesota55407 (Minneapolis)$3,08355811 (Duluth)$2,516
Missouri64118 (Kansas City)$3,20563366 (O’Fallon)$2,537
Mississippi39564 (Ocean Springs)$8,37539759 (Starkville)$2,532
Montana59102 (Billings)$2,76859901 (Kalispell)$1,515
North Carolina28314 (Fayetteville)$3,49928806 (Asheville)$2,006
North Dakota58801 (Williston)$3,25458078 (West Fargo)$2,492
Nebraska69101 (North Platte)$4,35068516 (Lincoln)$3,133
New Hampshire03801 (Portsmouth)$1,28403060 (Nashua)$1,162
New Jersey08401 (Atlantic City)$1,67508873 (Somerset)$1,061
New Mexico88101 (Clovis)$6,45888001 (Las Cruces)$2,085
Nevada89121 (Las Vegas)$1,66489701 (Carson City)$1,233
New York10025 (New York)$3,08814850 (Ithaca)$1,224
Ohio45458 (Dayton)$1,61444312 (Akron)$1,419
Oklahoma73099 (Yukon)$7,04374055 (Owasso)$5,282
Oregon97701 (Bend)$1,43897229 (Portland)$1,191
Pennsylvania19120 (Philadelphia)$2,02617603 (Lancaster)$1,148
Rhode Island02840 (Newport)$2,41302864 (Cumberland)$2,011
South Carolina29412 (Charleston)$5,29329651 (Greer)$1,853
South Dakota57701 (Rapid City)$3,42657401 (Aberdeen)$2,456
Tennessee38134 (Memphis)$3,21037918 (Knoxville)$2,206
Texas77479 (Sugar Land)$6,52479936 (El Paso)$2,227
Utah84118 (Salt Lake City)$1,71684043 (Lehi)$1,556
Virginia23503 (Norfolk)$2,67822903 (Charlottesville)$1,273
Vermont05701 (Rutland)$1,03005403 (South Burlington)$885
Washington98908 (Yakima)$1,68098115 (Seattle)$1,318
Wisconsin53215 (Milwaukee)$1,66553081 (Sheboygan)$1,283
West Virginia25705 (Huntington)$1,54726554 (Fairmont)$1,221
Wyoming82001 (Cheyenne)$2,24182901 (Rock Springs)$1,337

How to lower your homeowners insurance costs

Fortunately, you can try to save money and score cheap rates on a home insurance policy for a $400,000 property.

Here are several tips to consider:

  • Shop around. Take the time to get home insurance quotes from multiple homeowners insurance companies. Then, compare average rates, coverage options, coverage limits, and discounts to find the best deal.

  • Increase your deductible. The higher your deductible is, the lower your premium will be. As long as you can afford to pay more out of pocket for any damages that your home sustains, you might want to increase your deductible.[3]

  • Invest in safety and security systems. If you install certain safety and security systems in your home — like a fire alarm or smoke detector, for example — you can reduce your home insurance premiums.

  • Bundle insurance policies. It’s a good idea to purchase a homeowners insurance policy and auto insurance from the same company. This way, you can score a bundling discount.

  • Maintain good credit. Depending on where you live, home insurance companies may look at your credit-based insurance score when determining your premiums. Having good credit can lead to cheaper home insurance.

  • Ask about discounts. Most home insurers offer discounts to help policyholders save on home insurance policies. You may earn a discount if you pay for your policy in full, upgrade to a hail-resistant roof, install deadbolts on all doors, or live in a gated community. Contact an insurance agent or homeowners insurance company directly for more information on discounts.[4]

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Homeowners insurance on a $400,000 home FAQs

If you’re insuring your home for the first time or shopping around for a different policy, you likely have questions about finding the best amount of coverage for your $400,000 home. The following information should help you navigate the process of shopping for home insurance.

  • What’s the national average rate for home insurance?

    At the end of 2024, the national average cost of homeowners insurance was $3,259, according to Insurify's “Insuring the American Homeowner” report. But keep in mind that your rates may be higher or lower than the average, depending on multiple factors, including where you live.

  • What state has the lowest homeowners insurance rates?

    Vermont has the lowest average cost of homeowners insurance, at $1,208 annually, according to Insurify data.

  • How much should home insurance cost for a $400,000 house?

    Because so many variables affect the cost of homeowners insurance, it’s impossible to provide a definitive number for what home insurance should cost on a $400,000 home. It’s a good idea to look at your state’s annual average as a starting point. You should also consider whether you want replacement cost value, which will cost more, and how much liability coverage you need.

  • What is the 80% rule in homeowners insurance?

    The 80% home insurance rule refers to a threshold for how much coverage you should purchase if you want a home insurance company to fully cover the cost of replacing your home. If you follow this rule, you should insure your home for at least 80% of its total replacement cost.

  • What factors influence the cost of home insurance for a $400,000 house?

    Your location, the age and square footage of the home, your claims history, and the home’s proximity to emergency services like fire stations will determine home insurance costs for a $400,000 house. The type of home insurance coverage you choose will affect the cost of your policy as well.

  • Why did my homeowners insurance go up so much?

    Home insurance rates have been rising across the country. This is largely driven by increasingly frequent and severe weather events that cause damage to homes and result in home insurance claims. Inflation, which pushes up the cost of labor and materials for repairs, also plays a role in rising home insurance costs.

  • Does the location of your $400K house affect the price of homeowners insurance?

    Yes. If you live in a neighborhood with higher rates of crime or frequent severe weather conditions, you’ll pay higher home insurance costs for your home.

  • Do you need home insurance if you paid your mortgage off?

    No, but it can be a good idea. Once you pay off your mortgage, you don’t need to carry a home insurance policy. But having home insurance is still important because it can protect you from costly home damages and unexpected out-of-pocket costs.

Sources

  1. National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
  2. Insurance Information Institute. "What is homeowners insurance."
  3. Insurance Information Institute. "Understanding your insurance deductibles."
  4. Insurance Information Institute. "12 Ways to Lower Your Homeowners Insurance Costs."
Anna Baluch
Anna BaluchInsurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.

Anna has been a contributor at Insurify since December 2022.

Evelyn Pimplaskar
Edited byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

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