The average cost of home insurance for a $400,000 home is $289 a month or $3,467 a year for $250,000 in dwelling coverage. We use $250,000 as our baseline, though local construction costs may mean that limit covers more or less than a full rebuild actually requires. Your annual premium can change by up to 210% if your coverage doesn't match your real exposure.
How Much Is Homeowners Insurance on a $400,000 House? (2026)
Updated: November 9, 2026
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Key Takeaways
A $250,000 dwelling coverage policy on a $400,000 home costs an average of $289 per month or $3,467 per year, though your rebuild cost, not your home's market value, determines how much coverage you actually need.
AIG offers the cheapest home insurance for a $400,000 home at every coverage level we analyzed, with annual premiums of $1,089 for $250,000 in dwelling coverage.
Homeowners can lower their premium by raising their deductible, bundling policies, improving their credit score or installing safety features.
What Is the Average Homeowners Insurance Cost for a $400,000 House?
| $100K Dwelling / $50K Personal Property / $100K Liability | $152 | $1,828 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $289 | $3,467 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $490 | $5,874 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $693 | $8,317 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $894 | $10,733 |
*Note: The above limits use a $1,000 deductible and a sample homeowner profile of someone with good credit and a clean claims history. Some providers may offer in-between limits upon request.
How Much Does Homeowners Insurance for a $400,000 House Cost by State?
Our data shows an $815 monthly difference in home insurance costs for a $400,000 home, from $50 a month in Hawaii to $865 a month in Florida, against a national average of $289. A Florida homeowner pays more for this coverage in a single month than a Hawaii homeowner pays in an entire year.
| Alabama | $405 | $4,863 |
| Alaska | $118 | $1,412 |
| Arizona | $217 | $2,602 |
| Arkansas | $420 | $5,040 |
| California | $129 | $1,543 |
| Colorado | $340 | $4,075 |
| Connecticut | $188 | $2,258 |
| Delaware | $79 | $949 |
| District of Columbia | $104 | $1,254 |
| Florida | $865 | $10,384 |
| Georgia | $188 | $2,258 |
| Hawaii | $50 | $601 |
| Idaho | $139 | $1,673 |
| Illinois | $259 | $3,114 |
| Indiana | $261 | $3,136 |
| Iowa | $198 | $2,381 |
| Kansas | $310 | $3,714 |
| Kentucky | $252 | $3,029 |
| Louisiana | $609 | $7,304 |
| Maine | $119 | $1,425 |
| Maryland | $219 | $2,623 |
| Massachusetts | $161 | $1,932 |
| Michigan | $183 | $2,195 |
| Minnesota | $208 | $2,492 |
| Mississippi | $430 | $5,161 |
| Missouri | $245 | $2,939 |
| Montana | $401 | $4,814 |
| Nebraska | $523 | $6,277 |
| Nevada | $105 | $1,257 |
| New Hampshire | $96 | $1,151 |
| New Jersey | $148 | $1,771 |
| New Mexico | $148 | $1,774 |
| New York | $129 | $1,554 |
| North Carolina | $312 | $3,749 |
| North Dakota | $188 | $2,256 |
| Ohio | $173 | $2,075 |
| Oklahoma | $640 | $7,683 |
| Oregon | $94 | $1,124 |
| Pennsylvania | $183 | $2,195 |
| Rhode Island | $174 | $2,089 |
| South Carolina | $258 | $3,100 |
| South Dakota | $301 | $3,617 |
| Tennessee | $254 | $3,045 |
| Texas | $560 | $6,715 |
| Utah | $121 | $1,454 |
| Vermont | $88 | $1,054 |
| Virginia | $223 | $2,676 |
| Washington | $123 | $1,474 |
| West Virginia | $135 | $1,620 |
| Wisconsin | $115 | $1,386 |
| Wyoming | $158 | $1,893 |
How Much Does Homeowners Insurance for a $400,000 House Cost by City?
Two homeowners in the same state can pay very different premiums. The reason almost always comes down to city. How far the nearest fire station sits, what skilled labor costs in your market, and the property crime rate in your ZIP code all directly affect how insurers price your policy.
Data filtered by:
Alabama
$250K Dwelling / $125K Personal Property / $200K Liability
| Birmingham | $359 | $4,304 |
| Chunchula | $525 | $6,297 |
| Huntsville | $350 | $4,200 |
| Mobile | $570 | $6,840 |
| Montgomery | $321 | $3,855 |
| Phenix City | $328 | $3,935 |
| Rainsville | $405 | $4,861 |
Fun Facts About Home Insurance Costs for a $400,000 Home
Honolulu and Kailua, Hawaii, are the nation's most affordable cities in our data for a $400,000 home, at just $49 a month, less than a fifth of the $289 national average.
No state in our data has a wider city-level pricing gap than North Carolina. Wilmington costs $1,564 a month while Whittier, a small inland mountain community, costs $154 a month, a 916% difference.
Detroit and Ann Arbor sit in the same state, but not in the same insurance market: Detroit costs $303 a month versus $131 in Ann Arbor, a 131% difference.
Who Offers the Cheapest Home Insurance on a $400,000 House?
No two insurers price a $400,000 home the same way. Location, credit history and prior claims each get weighted differently across companies. For example, Travelers and Progressive each charge roughly five times what AIG charges for the same $250,000 in dwelling coverage. Compare the cheapest home insurance rates by provider at coverage limits from $250,000 to $750,000 to see where your insurer falls.
Data filtered by:
$250K Dwelling / $125K Personal Property / $200K Liability
| AIG Insurance | $91 | $1,089 |
| Amica | $119 | $1,425 |
| CSAA | $126 | $1,514 |
| AAA | $128 | $1,539 |
| American Modern | $174 | $2,089 |
| State Farm | $179 | $2,151 |
| USAA | $186 | $2,234 |
| Homesite | $211 | $2,526 |
| Farmers | $232 | $2,785 |
| Allstate | $245 | $2,942 |
| Nationwide | $278 | $3,341 |
| Chubb | $352 | $4,221 |
| Travelers | $453 | $5,435 |
| Progressive | $459 | $5,505 |
How Much Coverage Do You Need for a $400,000 Home?
How much home insurance you need depends on what it costs to rebuild your home, not what it sold for. A $400,000 market value and a $400,000 rebuild cost are rarely the same number.
For a $400,000 home, $250,000 in dwelling coverage reflects a more realistic rebuild cost baseline, since market value includes land and neighborhood demand, neither of which factors into what a contractor charges after a loss. That said, custom finishes, an older build, or a high-labor market can push rebuild costs above that figure. Your coverage limit should reflect your actual exposure.
Determining Dwelling CoverageMarket value isn't a reliable base for dwelling coverage on a $400,000 home because it captures land value and neighborhood demand, neither of which a contractor bills you for after a loss. The number that matters is your rebuild cost, determined by square footage, local construction rates and any custom features your home has. Start from that figure and set your dwelling limit there.
Determining Personal Property CoverageMost home insurance policies set personal property coverage at 50% to 70% of dwelling coverage. Take inventory of your belongings to confirm that range covers what you actually own. Furniture, appliances, clothing and valuables add up faster than most homeowners expect.
Determining Personal Liability CoverageThe $250,000 dwelling policy in our analysis includes $200,000 in liability coverage, which is a reasonable starting point for most homeowners. If your assets exceed that threshold or your property carries a higher legal risk from a pool or frequent guests, raising your limit better protects what you've built.
HOME INSURANCE COSTS BY HOUSE VALUE
Looking for coverage for a different home value? Check out our guides on:
What Affects Home Insurance Rates on a $400,000 House?
Your premium reflects the insurer’s assessment of how likely you are to file a claim and how much that claim could cost. Several factors feed into that calculation, and understanding them helps you see where your rate is coming from and where you have room to act.
LocationWhere your home sits is the most consequential factor in your premium. Our data shows a monthly range of $50 in Hawaii to $865 in Florida for the same $250,000 in dwelling coverage, a difference that comes down to local weather risk, construction costs, crime rates and proximity to fire services. Two homes with identical coverage limits in different ZIP codes can carry very different rates.
- Home Age
Older homes cost more to insure because they’re more expensive to repair. Electrical systems, plumbing and structural materials that predate current building codes often can’t be replaced with off-the-shelf components, and any claim that requires bringing the home up to code adds to the insurer’s exposure. A newer home built to current standards usually carries a lower rate because the materials are predictable and the risk of a code-related cost increase is lower.
Credit ScoreMost states allow insurers to use a credit-based insurance score when setting your premium. A lower score signals a higher likelihood of filing a claim, and insurers price accordingly. Improving your credit score is one of the few factors within your direct control that can lower your rate without changing your coverage.
Claims HistoryFiling a claim tells your insurer that you’ve experienced a loss before, which makes another loss statistically more likely. Even a single claim in the past three to five years can raise your premium at renewal. A clean claims history, by contrast, keeps your rate stable and often qualifies you for claim-free discounts.
DeductibleYour deductible is the amount you pay out of pocket before your insurer covers the rest. A higher deductible means the insurer pays less on any given claim, so it charges a lower premium in return. That tradeoff only makes sense if you can cover the higher out-of-pocket amount when a claim comes up.
Proximity to Fire ServicesHomes closer to a fire station and a fire hydrant cost less to insure because firefighters can reach them faster and limit the damage. Homes in rural areas with longer response times carry higher fire risk in the insurer’s calculation. Insurers price that risk into the premium.
How to Lower Home Insurance Costs on a $400,000 House
- 1Compare Quotes From Multiple Insurers
AIG quotes $1,089 a year to insure a $400,000 home with $250,000 in dwelling coverage. Progressive quotes $5,505 for the same policy. Get quotes from at least three insurers before you commit, so you know what the market is actually charging for your home.
- 2Bundle Your Policies
Most insurers offer a discount when you buy home and auto policies through them. Savings vary by insurer. Bundling remains one of the most reliable ways to lower your premium without reducing your coverage level or deductible.
- 3Improve Your Credit Score
Insurers in most states factor credit into your rate, so a better score can lower your premium at renewal. Pay your bills on time and keep credit utilization low to improve your credit-based insurance score. Look over your credit report regularly for errors that lower your score.
- 4Install Safety and Security Features
Smoke detectors, burglar alarms, deadbolt locks and fire suppression systems all lower the insurer's risk exposure. Many insurers price that reduction into your premium, so adding these features can qualify you for a discount. These safety upgrades also lower the odds you'll ever need to file a claim.
- 5Ask About Available Discounts
Insurers offer discounts for situations homeowners often don’t know to ask about. Paying your premium in full, living in a gated community, having a newer roof or being claims-free for several years can all qualify you for savings. Contact your insurer or an independent agent directly to find out which discounts apply to your policy.
Cost of Home Insurance on a $400K House: Bottom Line
The $3,467 annual average for a $400,000 home is only a useful number if your $250,000 dwelling limit reflects what a real rebuild would actually cost. Renovation upgrades and local construction prices can affect that limit enough to change your premium by up to 210%.
A professional rebuild estimate, a thorough home inventory and a side-by-side look at the best home insurance providers get you to the right coverage without carrying limits you don't need or gaps you can't afford.
Home Insurance Cost for $400K House: FAQ
No. Market value and rebuild cost are different numbers for most $400,000 homes. Your home insurance coverage needs to align with the rebuild cost. A policy set to your home's sale price misses construction cost increases that show up the moment you file a total loss claim.
The average cost of home insurance for a $400,000 home is $289 a month or $3,467 a year, based on a $250,000 dwelling coverage baseline. Your actual rate can shift above or below that figure depending on where your home sits and what construction costs look like in your area.
Yes. Monthly rates for a $400,000 home drop from $289 a month at the $250,000 dwelling limit to $152 a month at the $100,000 limit, since a lower coverage amount reduces what you're insuring. Just make sure your limit still matches your actual rebuild cost, not your home's market value, or you risk being underinsured after a total loss.
Raising your deductible from $1,000 to $2,000 saves $578 a year on average, per MoneyGeek’s analysis. The jump from $500 to $1,000 saves $427 a 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.
Average Home Insurance Costs for a $400,000 House: Our Ratings Methodology
Why Trust MoneyGeek? MoneyGeek built this analysis by pulling quotes from major insurers across the country and sorting them by location, company and coverage level to give $400,000 homeowners a reliable picture of what home insurance actually costs in their market.
Using data from Quadrant Information Services, MoneyGeek evaluated homeowners insurance carriers against a consistent sample profile: a good credit score (769 to 792), a wood-frame home built in 2000 with a composite shingle roof, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in personal liability coverage and a $1,000 deductible. The result is an accurate cost picture for $400,000 homeowners shopping at this coverage level.
Review our home insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.