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

The average cost to insure a $400K home is $2,194 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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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
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  • 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.

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Updated November 17, 2023

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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. 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.

Home Insurance CompanyAverage Yearly Cost
Westfield $1,029
Armed Forces Ins Exchange$1,535
American Family$1,597
Erie$1,672
Allstate$1,965
USAA$1,972
Travelers$1,978
Auto-Owners$2,010
ASI$2,025
State Farm$2,040
United P&C$2,262
Farmers$2,332
Chubb$2,370
Nationwide$2,429
Foremost$2,968
Allied$3,074
Encompass$3,144
Metropolitan$3,398
COUNTRY Financial$3,620
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.

StateAverage Annual Cost
Alaska$1,389
Alabama$4,085
Arkansas$3,492
Arizona$2,016
California$1,749
Colorado$4,198
Connecticut$1,982
Delaware$1,430
Florida$12,329
Georgia$2,741
Hawaii$1,717
Iowa$2,462
Idaho$1,476
Illinois$2,170
Indiana$2,194
Kansas$4,023
Kentucky$2,576
Louisiana $5,557
Massachusetts$2,022
Maryland$1,926
Maine$1,549
Michigan$2,146
Minnesota$2,706
Missouri$2,825
Mississippi$5,144
Montana$1,946
North Carolina$2,446
North Dakota$3,053
Nebraska$4,540
New Hampshire$1,494
New Jersey$1,442
New Mexico$3,319
Nevada$1,416
New York$2,503
Ohio$1,499
Oklahoma $6,140
Oregon$1,269
Pennsylvania$1,699
Rhode Island$2,268
South Carolina$3,532
South Dakota$3,291
Tennessee$2,595
Texas$4,996
Utah$1,268
Virginia$1,772
Vermont$1,142
Washington$1,536
Washington, D.C.$1,414
Wisconsin$1,622
West Virginia$1,746
Wyoming$2,459
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 YearAverage 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:

  • illustration card https://a.storyblok.com/f/162273/100x100/c922a01b77/house.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

    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

    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

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

  • illustration card https://a.storyblok.com/f/162273/x/4c9753bdbe/medical-payments.svg

    Medical payments

    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/162273/100x100/4ec24627d2/flood-coverage.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/162273/1856x1392/a22da25e46/earthquake-emerald.png

    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.

Learn More: How to Buy Home Insurance

Learn More: How to Buy Home Insurance

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

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?

  • 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.

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.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
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.

Featured in

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