How Much Does Homeowner Insurance Cost on a $400K House?

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Lauren Lewthwaite Last Updated On: September 24, 2025

Understanding Homeowners Insurance Costs on a 400k Home

No matter where you live or what your home is worth, you need home insurance. It’s there to protect you against the unexpected, so that you can get back to normal as quickly as possible should something happen. But we know cost can play a part, so we’re here to help you understand the cost of home insurance for a 400k house and to help you find ways to save.

Replacement Cost vs. Actual Cash Value

We want to quickly level set: when we talk about insurance values here, we’re referring to the replacement cost. This means that should your home be damaged, you’ll be compensated for the actual cost of restoring it to its original condition prior to damage. Some insurance policies may give you the option for actual cash value instead, which can lower your premiums, but means depreciation will be factored into the amount you’re compensated for.

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

We’ll get right into it. You can expect to pay $3,231 annually in home insurance for a home worth $400,000, on average across the country. This is for dwelling coverage of $400,000 with $300,000 in liability, and a $1,000 deductible. Of course, this number can vary significantly depending on several factors, including:

Your state and zip code
Your credit history
Your claims history
And more

Where you live is going to majorly affect these numbers; for example, this can jump to $4,744 in Texas, but drop to $2,017 in Washington. Homes in areas that are more at risk for flooding, tornadoes, wildfires, and more are going to be more expensive to insure. But that doesn’t mean you’re completely out of luck – keep reading for ways to save on home insurance.

How to Save on Home Insurance for Your 400k Home

There’s no place like home, but there’s also nothing like paying for home insurance that’s way out of your budget. Luckily, there are some tried and true ways to save on home insurance without having to look under the couch cushions for spare change. These include:

Shop Around: If you’re accepting the first insurance quote you receive, you’re leaving money on the table. Request quotes from multiple providers to find the best rate. Or, compare quotes here to make it simple.

Bundle Policies: Having multiple insurance policies (home, car, life, rental) with one provider can net you a multi-policy discount.

Avoid Small Claims: Your claims history is factored into your premiums, so try to avoid filing for small claims that you can easily repair yourself, and save the claims for when you really need them.

Increase Your Deductible: Simply paying more for your deductible (the amount you have to pay first before insurance kicks in) will lower your premiums. This means you’ll have to pay more should you need to file a claim, but the rest of the time your premiums will be more affordable (and hopefully you never have a claim!).

Improve Your Credit Score: A poor credit score makes you more of a risk to your insurer, so work on paying off debt and making payments on time to improve your credit score and eventually lower your premiums. Find out more here.

We would be remiss if we didn’t mention the obvious: keep your home in good condition to ensure your claims don’t get denied for negligence, because a denied claim will really hit your wallet where it hurts.

The Takeaway: Homeowners Insurance on a 400k Home

Now that you have a rough idea on what you’ll pay in home insurance for your $400,000 home, it’s time to get shopping – for insurance quotes, that is. Start by getting multiple quotes, asking for any discounts you’re eligible for, and understanding what you’re covered for. This is key to making sure a tough day doesn’t turn into a tough year. After all, that’s what insurance is for!

Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.

Homeowners Insurance on a 400k Home