How Much Is Homeowners Insurance on a $400K House?

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.

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.

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.

• 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:

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  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.

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  Personal property

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

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  Loss of use

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

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  Personal liability

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

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  Medical payments

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

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  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.

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  Earthquake insurance

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

How to estimate your homeowners insurance costs

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.

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 $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