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

Homeowners insurance for a $400,000 house costs an average of $4,427 per year, based on a policy with $500K in dwelling coverage, $250K in personal property coverage, $300K in liability protection and a $1,000 deductible. Your premium can go up or down depending on your coverage limits and personal risk profile.

Choosing exactly $400K in dwelling coverage might seem more affordable, but many homeowners opt for higher limits to account for rising rebuild costs or future upgrades. Most insurers offer fixed tiers, though some may accommodate custom limits like $400K or $450K if requested.

Dwelling coverage plays a major role in determining your home insurance premium. It covers the cost to rebuild your home after a covered loss, so base this number on rebuild value, not market value — especially if you're planning upgrades or want to guard against inflation.

However, more coverage leads to a higher premium. A policy with $500K in dwelling coverage costs an average of $4,427 per year, while $1M in coverage raises that to $6,262. The table below shows how rates vary across coverage tiers.

It’s a good idea to base your dwelling coverage on your home's rebuild cost — what it would cost to rebuild the structure — not the market value, which includes the land. This helps you avoid paying for coverage you don’t need or falling short if you must rebuild. Use our home insurance calculator to estimate your costs based on where you live and how much coverage you want.

Insurance rates for a $400K home can vary widely depending on the company, even with the same coverage limits. State Farm offers the lowest average annual premium at $3,126, while Travelers charges $8,348, a difference of more than $5,200 annually. 

Each insurer uses its own pricing model to assess risk, which is why you should compare quotes. The table below shows the average price major providers charge for a policy with $500K in dwelling coverage.

Your deductible has a direct impact on your home insurance premium. For a $400K home with $500K in dwelling coverage, the average annual cost is $4,427 with a $1,000 deductible — but raising it to $2,000 can lower your premium by about $492 annually. A higher deductible means you'll pay more out of pocket if you file a claim, but it usually results in lower monthly premiums. See how your annual cost changes with different deductible amounts in the table below.

Where you live greatly affects how much you'll pay for home insurance. While the national average for a $400K home with $500K in dwelling coverage is $4,427 per year, rates range widely — from $1,951 in California to $13,854 in Florida, where hurricane and flood risks drive up costs. State-specific risks like natural disasters, weather patterns and local rebuilding costs all factor into your premium. Use the table below to compare average rates for your state's $500K policy.

Your credit score can have a major effect on your home insurance premium — with the difference between excellent and poor credit reaching as much as $7,264 per year. That's because insurers use credit scores to assess financial responsibility and predict the likelihood of future claims.

Generally, a higher score signals lower risk, which can lead to lower premiums. However, California, Hawaii and Massachusetts prohibit insurers from using credit scores to set rates. See the table below to compare how your credit score can impact premiums for a $400K home with $500K in dwelling coverage.

Insurers often see lower credit scores as a higher risk, which can lead to more expensive premiums. On the other hand, strong credit is typically rewarded with lower rates. Improving your credit score — by paying bills on time, reducing debt and managing your finances — can help you qualify for more affordable home insurance over time.

Home insurance premiums aren't one-size-fits-all — your rate depends on a mix of property details, coverage choices and personal risk factors. Knowing what affects your cost can help you make smarter decisions and potentially save money. Here are the key factors insurers consider:

This page breaks down the typical costs of insuring a $400K home — and why your rate may be higher or lower. While $4,427 per year is the average for a policy with $500K in dwelling coverage, your premium can shift based on your deductible, location and coverage limits. Choosing higher coverage can offer peace of mind, but it's expensive. The key is understanding how each factor affects your cost, so you can build a policy that fits your coverage needs and budget.

Got more questions about what it costs to insure a $400,000 home? Here are quick, straightforward answers to help you better understand your options and what affects your rate.

Why Trust MoneyGeek?

MoneyGeek analyzed homeowners insurance rates using official state filings and data from Quadrant Information Services, a trusted source for real-world insurance pricing. Our goal was to highlight the most reliable providers based on affordability, coverage and overall value.

How We Evaluated Insurance Providers

We compared premiums and policy features for standard homeowners insurance and higher-value coverage options. All rates were pulled from Quadrant Information Services, giving us accurate pricing across all 50 states.

Sample Homeowner Profile

To keep comparisons consistent, we used a sample homeowner with the following traits:

• Good credit score (769 to 792)
• Home built in 2000
• Wood-frame construction
• Composite shingle roof

Coverage Levels Used

Unless otherwise specified, we based quotes on:

• $250K dwelling coverage
• $125K personal property coverage
• $200K liability coverage
• $1,000 deductible

We also analyzed higher-value policies using:

• $1M dwelling coverage
• $500K personal property coverage
• $1M liability coverage

This approach allowed us to identify top-performing insurers for typical homeowners and those with more extensive coverage needs.