3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Insurify’s expert insurance writers and editors operate independently of our insurance partners. As an independent agent and insurance comparison website, we make money through commissions from insurers. But that does not influence any editorial content, including reviews. Learn more.
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. 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.
How much is home insurance on a $400,000 house?
The annual cost of dwelling coverage on a $400,000 house is $2,194, 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.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Average home insurance cost 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.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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.
The table below shows how much home insurance might cost for a $400,000 house by home age.
Home Construction Year
Average Yearly Cost
1940
$4,702
1970
$4,686
2000
$4,487
2010
$3,933
2020
$2,894
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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 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:
Dwelling coverage
Dwelling coveragepays for damage to the structure of your home, as well as any structures attached to it, such as a garage, porch, or deck.
Personal property
Personal property coverage pays for the value of damaged or stolen personal belongings, like electronics or furniture.
Loss of use
Loss of use coverage reimburses you if you can’t live in your home during repairs following a covered peril.
Personal liability
Personal liability protects you financially if you or a family member causes property damage or bodily injury to someone else.
Medical payments
Medical payments insurance can come in handy if someone has an injury on your property and faces medical bills.[1]
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.
To estimate your home insurance rates, you need to estimate how much it would cost to rebuild your home as well as the value of your assets and value of your personal property. You should also determine how much coverage you need.
Fortunately, you can try to save money and score cheap rates on a home insurance policy for a $400K 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 hone in on 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. A good credit score 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 $400K 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 $400K 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 can expect higher home insurance costs for your home.
Do you need home insurance if you paid your mortgage off?
Once you pay off your mortgage, you don’t need to carry a home insurance policy. Despite this, buying home insurance is a good idea 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.
Edited byKatie PowersAuto and Life Insurance Editor
Katie PowersAuto and Life Insurance Editor
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.