5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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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.
Cost of insurance on a $400,000 house
The annual cost of dwelling coverage on a $400,000 house is $2,961, on average. Because the average 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.
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.
The table below shows how much home insurance might cost for a $400,000 house by home age.
Home Construction Year
▲▼
Average Annual Premium
▲▼
1940
$4,702
1970
$4,686
2000
$4,487
2010
$3,933
2020
$2,894
Factors that affect home insurance rates
Here’s an overview of the factors that affect what you’ll pay for home insurance coverage:
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.
Square footage: The more square footage your home has, the higher your home insurance rates will be. Your property will present a bit more risk to insure than a smaller one.
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.
Proximity to fire stations: 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.
Level of coverage: Several types of home insurance policies are available. While an HO-3 policy is the most common, you may invest in more extensive coverage for higher home insurance rates.
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.
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]
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 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.
What is high-value home insurance?
High-value home insurance protects expensive properties. A high-value home is usually worth $750,000 or more.
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.
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.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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