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

The average cost of a homeowners insurance policy with $400,000 in dwelling coverage is $3,186 per year. Allstate provides the cheapest home insurance policy for a $400k home, at an average annual rate of $2,319.

In this review, we’ll help you understand the ins and outs of homeowners insurance costs on a $400,000 house. Home insurance coverage deals with the replacement cost of your home, not the market value, so when comparing quotes for a home insurance policy, you need to keep this in mind.

Average Cost Of Homeowners Insurance On A $400k House – By State

Where you live greatly influences the rates that you pay for homeowners insurance on a $400,000 home. If you live in Hawaii, you might pay around $261 every month for a $400,000 home and if you live in Oklahoma you might pay around $304 for the same policy.

For a home with $400,000 in dwelling coverage, here’s a look at the premiums you might pay in some U.S. states:

Most Expensive States For Homeowners Insurance On A $400,000 Home

Oklahoma tops the list of most expensive states for homeowners insurance policies on a $400k home, available for around $304 a month. From there, here are the other most costly states:

Cheapest states For Home Insurance On A $400,000 House

Let’s now look at the cheapest states for homeowners insurance. You’ll see the lowest-cost state for homeowners insurance for a $400,000 home is Hawaii at $32 per month. From there, the other cheapest states are as follows:

Average Cost Of Homeowners Insurance On A $400k Home – By Insurance Carrier

No two homeowners insurance providers are the same. That’s why you must get quotes from several different insurance companies before choosing a policy.

Based on our analysis, Allstate provides the cheapest average annual cost for a homeowners insurance policy on a $400,000 home, at $2,319.

Average Cost Of Homeowners Insurance On A $400,000 House – By Deductible

Depending on the deductible that you choose, your insurance costs will likely change. Take a look at some average costs for home insurance on a $400,000 home for varying deductible amounts.

Average Homeowners Insurance Cost On A $400,000 House – By Credit Score

Your Credit rating can have an impact on the cost of your home insurance premiums. Here’s a quick look at the average costs of home insurance on a $400,000 home for different credit ratings.

How Much Coverage Do I Need For a $400,000 House?

If you bought your home for $400k, that doesn’t necessarily mean that you need that amount of coverage. Remember, you need to calculate the replacement cost value of your home to determine how much coverage to pay for.

You will therefore need to calculate your replacement cost value based on the total square footage of your house, along with all features in your home and its construction materials.

When deciding how much coverage you need, consider the following:

1. Dwelling coverage – It is important that the replacement cost coverage for your home considers current inflation for construction materials and labor so you don’t face a shortfall when suffering a covered loss.
2. Other Structures – These include detached garages, sheds, gazebos, in-ground swimming pools and even doghouses.
3. Your personal belongings – Your furniture, clothes, electronics, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disasters. The coverage is generally 50 to 70% of the dwelling insurance you have on the structure of the house.
4. Loss of use/additional living expenses – This pays the additional costs of living away from home if you cannot live there due to damage from a an insured disaster. It covers hotel bills, restaurant meals and other costs, over and above your usual living expenses, incurred while your home is being repaired or rebuilt.
5. Liability protection – Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. Liability coverage also provides no-fault medical coverage, so if a friend or neighbor is injured in your home, they can simply submit medical bills to your insurance company.

What Does $400k In Dwelling Coverage Really Cover?

$400,000 in coverage means that this is the maximum amount that your insurance company will pay out to you, in the case of a loss.

Comprehensive homeowners insurance should address:

• Dwelling Coverage – Protects the physical structure of your home against covered perils.​
• Personal Property Coverage – Safeguards your belongings, such as furniture and electronics.​
• Liability Protection – Covers legal expenses if someone is injured on your property.​
• Additional Living Expenses (ALE) – Pays for temporary housing and related costs if your home becomes uninhabitable.

A standard homeowners insurance policy has various coverage levels, but it also has a lot of standard exclusions. Among these are the following:

• Power failure
• Intentional damage
• Flood damage
• Neglect
• Mold damage
• Rodent infestation
• Pet damage
• Earthquake
• Foundation issues
• Defective construction

You can also add more coverage to make up for excluded items. Consider the following:

Flood Damage

Flood damage is a homeowner’s nightmare. Consider rainwater. A homeowners insurance policy will cover water damage caused by rainif it enters the home from the “top down” such as a hole in your roof caused by a windstorm.

You won’t be covered if the water rises damage stems from water rising from the ground up, however. You’ll require Flood Insurance for proper coverage. Flood insurance typically needs to purchased separately through the National Flood Insurance Program or a private flood insurers. Some home insurers offer it as an endorsement.

Earthquake Damage

Earthquake damage is another type of natural disaster that isn’t usually covered by a standard HO3 policy. But you can get earthquake insurance coverage as an add-on option from most home insurers. It’ll protect your residence and possessions from earth movement.

In California, the most earthquake-prone state, coverage is offered through the California Earthquake Authority.

How To Get Lower Homeowners Insurance On A $400,000 Home

There are ways to save on your homeowners insurance coverage. Here are some of the main ways you can save money:

• Ask about discounts
• Bundle your policy with an auto insurance policy
• Adust your deductible

Factors That Affect the Cost of Homeowners Insurance On A $400k House

We mentioned that where your home is located is a big factor in determining your homeowners insurance cost. But let’s look further at things that impact your homeowners insurance cost on a $400,000 home.

Age Of The Home

How old is your residence? A newer home will typically cost less to insure than an older home. It’s more likely that a newer home is more current on codes.

Building Materials

The materials used to build your home will impact your homeowners insurance costs. So, whether your home is constructed out of brick, wood, sheetrock, or some other material, you’ll either pay more or less than average for coverage.

Proximity To Fire Station

Living close to a fire station and having fire hydrants on your street will lower your homeowners insurance

Weather

Living in an area prone to tornados, or other adverse weather systems can increase the amount you pay for insurance. You also must keep in mind that a rider in addition to your homeowners insurance is needed to cover some issues.