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

Homeowners insurance on a $400,000 house averages $5,874 per year, but your rate may vary based on location, coverage limits and deductible.

Find out if you're overpaying for homeowners insurance below.

Written by Mark Fitzpatrick

Updated: June 15, 2026

Advertising & Editorial Disclosure

Key Takeaways

We found that AIG offers the cheapest homeowners insurance for a $400,000 house at $159 per month, compared to Progressive's $717 for the same coverage, a $6,695 annual gap.

Raising your deductible from $1,000 to $2,000 saves $578 per year, but only if you have $2,000 in savings to cover a claim out of pocket.

In our data, the gap between excellent and poor credit is $8,492 per year, larger than the rate difference between most neighboring states.

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

We looked at home insurance rates from 14 carriers across 925 ZIP codes for a $400,000 home. The average comes out to $490 a month ($5,874 a year) for $500,000 in dwelling coverage, $250,000 in personal property, $300,000 in liability and a $1,000 deductible.

The average can be misleading. AIG charges $1,911 a year while Progressive charges $8,606 for the exact same coverage. Most carriers (10 of the 14) are actually pretty close to each other, so the real win is just steering clear of the priciest options rather than obsessing over small differences in the middle.

Estimate Your Home Insurance Rate on $400,000 Home

Select your state, home age and deductible to calculate what home insurance typically costs on a $400,000 home.

State

Select State

Home Age

Select Home Age

Deductible

Select Deductible

Average Annual Premium—

State

Select State

Average Annual Premium—

Home Age

Select Home Age

Deductible

Select Deductible

*Our calculator uses a profile of 41- to 60-year-old homeowners with no prior claims and good credit, insuring a 2,500-square-foot home.

Average Home Insurance Cost for $400,000 House by Company

AIG Insurance offers the cheapest homeowners insurance for a $400,000 house at $1,911 per year, $539 less than the second-cheapest option (Amica at $2,451), based on MoneyGeek's analysis. AIG writes fewer policies in high-risk states, so homeowners in hurricane or wildfire zones may not see quotes this competitive.

At the other end, Progressive ($8,606), Travelers ($8,311) and Chubb ($7,408) cost $5,000 to $6,700 more per year than AIG for the same dwelling coverage.


AIG Insurance	$159	$1,911
Amica	$204	$2,451
AAA	$226	$2,707
CSAA	$237	$2,846
State Farm	$282	$3,378
USAA	$300	$3,603
American Modern	$303	$3,639
Homesite	$337	$4,044
Allstate	$396	$4,753
Farmers	$439	$5,262
Nationwide	$511	$6,128
Chubb	$617	$7,408
Travelers	$693	$8,311
Progressive	$717	$8,606

The cheapest five carriers are bunched closer together than you'd expect, but the real gap opens up at the top. Chubb, Travelers and Progressive charge two to four times more than AIG for identical coverage, and there's no coverage difference that explains it. If you're not actively comparing quotes, you could easily end up paying $6,000 more a year than you need to.

MONEYGEEK EXPERT TIP

Insurance companies use different methods to assess risk, so the same coverage can cost thousands more or less, depending on the provider. Some may weigh your claims history or deductible differently than others. That’s why it’s smart to compare multiple quotes: it’s one of the easiest ways to find the best deal for your needs.

Home Insurance on $400,000 House by Deductible Amount

Raising your deductible from $1,000 to $2,000 saves $578 a year on average. You'd need about 3.5 claim-free years to offset the extra $1,000 out of pocket, which works out fine for most homeowners since the average claim comes once every eight to ten years. The exception is if you live somewhere with frequent hail or storms and tend to file smaller claims often.


$500	$525	$6,301
$1,000	$490	$5,874
$1,500	$464	$5,571
$2,000	$441	$5,296

MONEYGEEK NOTICED THAT...

Each deductible step saves less than the one before: $500 to $1,000 saves $427, $1,000 to $1,500 saves $303 and $1,500 to $2,000 saves $275. The diminishing returns mean most homeowners get the best trade-off at the $1,000 or $1,500 level, where the savings-to-risk ratio is highest.

Home Insurance Costs for $400,000 House by State

Florida homeowners pay $17,639 a year on average for a $400,000 home. California homeowners pay $2,715. That $14,924 difference comes down to a few things: Florida gets hit hard by hurricanes, has a high rate of insurance fraud and has so few private insurers left that over a million homeowners are on the state's backup plan. California looks cheap on paper, but that average covers the whole state. If you're in a wildfire area, you're paying a lot more, and some people there can't get private coverage at all.

Data filtered by:


Alabama	$644	$7,724

Average Home Insurance for $400,000 House by Credit Score

Most people don't realize that your credit score can change what you pay for home insurance by over $8,000 a year. Poor credit averages $12,174 a year, and good credit averages $3,682. That's a bigger difference than moving to a cheaper state.

Insurers use credit-based insurance scores to predict claim likelihood, so improving your credit is the single most effective way to lower your premium. California, Hawaii and Massachusetts prohibit insurers from using credit scores in rate-setting, so homeowners in those states won't see credit-related price variation.


Poor	$1,014	$12,174
Below Fair	$670	$8,039
Fair	$504	$6,048
Good	$490	$5,874
Excellent	$307	$3,682

Insurance companies view lower credit scores as higher risk, which means higher premiums. Good credit typically earns you lower rates. Improving your credit score (by paying bills on time, reducing debt and managing your finances better) can help you qualify for cheaper home insurance over time.

WHAT OUR DATA SHOWS

The biggest single drop is between poor and below-fair credit at $4,135 per year, while the fair-to-good jump saves only $174. Homeowners with poor credit get the largest payoff by moving even one tier up, and homeowners with good credit are still leaving $2,192 per year on the table compared to the excellent tier.

$400,000 Home: How Much Coverage Do You Need?

Getting the right coverage for a $400,000 home means you'll need enough coverage for your structure, belongings, liability risks and other parts of your home while staying within budget. Here's how to think through the major coverage types.

Dwelling Coverage
Your dwelling limit should reflect the cost of rebuilding your home, not its market value. For a $400,000 property, that means choosing a limit between $400,000 and $500,000 to account for inflation, building code updates and any upgrades. Our rate data on this page uses $500,000 in dwelling coverage because construction costs in most markets exceed the home's purchase price when labor, materials and code compliance are included.
Personal Property Coverage
Personal property coverage pays to replace furniture, electronics, clothing and other belongings if they're damaged or stolen. Most policies default to 50% of your dwelling limit ($250,000 on a $500,000 dwelling policy), which works for most households. Homeowners with jewelry, art or high-end electronics should create a home inventory and consider a scheduled personal property endorsement for items above the per-item cap (usually $1,500 to $2,500 for jewelry).
Liability Coverage
Liability coverage protects you if someone is injured on your property or if you accidentally cause damage to someone else's property. For a $400,000 home, $300,000 in liability coverage is the standard starting point. Homeowners with a pool, trampoline, dog or frequent guests should consider $500,000 or a separate umbrella policy, especially if total assets exceed $300,000.
Medical Payments Coverage
Medical payments coverage pays small medical bills if a guest is hurt on your property, regardless of who is at fault. It ranges from $1,000 to $5,000 and covers minor incidents like a visitor tripping on your front steps without requiring a lawsuit.
Other Structures Coverage
Other structures coverage applies to buildings not attached to your home, including fences, sheds, detached garages and guest houses. It's set at 10% of your dwelling limit by default, so a policy with $500,000 in dwelling coverage includes $50,000 for other structures. Homeowners with a detached garage or guest house worth more than $50,000 should request a higher limit.

HOME INSURANCE COSTS BY HOUSE VALUE

Looking for coverage for a different home value? Check out our guides on:

Cost of Home Insurance on a $400,000 House: Bottom Line

MoneyGeek's analysis of 14 national insurers found that homeowners insurance on a $400,000 house costs $5,874 per year on average with $500,000 in dwelling coverage, but the right price for your home depends on your insurer, deductible, location and credit score. The most effective way to lower your rate is to compare quotes from at least three insurers, since our data shows a $6,695 annual spread between the cheapest and most expensive carrier for identical coverage.

After choosing an insurer, raising your deductible from $1,000 to $2,000 saves $578 per year and improving your credit score from good to excellent saves $2,192 per year.

Home Insurance Cost for $400,000 House: FAQ

Got more questions about what it costs to insure a $400,000 home? We give direct answers to help you better understand your options and what affects your rate.

What is a good rate for homeowners insurance on a $400,000 house?

The national average is $5,874 per year for a $400,000 home with $500,000 in dwelling coverage and a $1,000 deductible. Five of the 14 insurers in MoneyGeek's analysis charge less than $3,400, so homeowners paying under that threshold are getting a competitive rate. If you're paying more than $6,000 with good credit and no recent claims, compare quotes because you're likely above the median.

Why is the coverage based on $500,000 instead of $400,000?

Dwelling coverage should match rebuild cost, not purchase price. Labor, materials and building code compliance in most markets push the actual cost to rebuild a $400,000 home above $400,000. A $500,000 dwelling limit builds in a buffer for inflation, material price spikes and code-required upgrades like updated electrical or plumbing.

Can I lower my premium by choosing $400,000 in coverage instead?

Yes, but a lower dwelling limit leaves you underinsured if a total loss happens and construction costs exceed $400,000. In markets where lumber, labor and materials have increased 20% to 30% since your home was built, a $400,000 limit may cover only 80% of the actual rebuild. The premium difference between $400,000 and $500,000 in dwelling coverage is usually $50 to $100 per month, a small price for $100,000 in additional protection.

How much can I save by increasing my deductible?

Raising your deductible from $1,000 to $2,000 saves $578 per year on average in MoneyGeek's analysis, and the $500-to-$1,000 jump saves $427 per year. Each step higher saves less than the one before, so the $1,000 deductible offers the best balance of savings and manageable out-of-pocket risk. Make sure you have enough in savings to cover your deductible if you need to file a claim.

Our rates come from official state filings and Quadrant Information Services across all 50 states, using a sample homeowner with good credit, a home built in 2000, wood-frame construction and a composite shingle roof. We used $500,000 in dwelling coverage, $250,000 in personal property, $300,000 in liability and a $1,000 deductible for every comparison. If your rebuild cost is around $400,000, your dwelling coverage should reflect actual construction costs in your area, not your home's market value, so comparing quotes from multiple insurers matters since rates vary a lot even for identical coverage. Learn more about MoneyGeek's home insurance methodology.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.

Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). His career began in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

Read Full Bio »