The information that can be obtained in the a CLUE report (comprehensive loss underwritting exchange) is very valuable and would be a wise move as a buyer. The seller will need to pull the report for you if you would like it. I suggest that you use the link below as a possible link to suggest that the sellers agent ask the seller for this info for you.
The cost of insurance is driven by many variables including the fact that each township and city may have different fire department ratings which will have a direct impact on the cost of policies The best help for you is to obtain multiple quotes making sure that the insurance agents are using the same quote specifications.
Maybe there's a different question you should be asking... whether the house doesn't meet current code requirements for fire or other safety measures. Occasionally, a house will be so far from code requirements that it will become virtually uninsurable. Clearly, this would be more common in an older home, but it could come into play if the insurers know that some part of new construction didn't meet their standards. For example, here in Florida, there is a relatively high number of houses built with substandard Chinese drywall. This drywall produces sulfur gas under certain conditions, which then destroys the houses plumbing.
I'd be asking the insurance companies you've asked for quotes what factors went into computing the rate. If there's a known issue, clearly you want to know BEFORE completing the deal.
$4000 is an enormous amount for property insurance. Unless you own a Million Dollar home. Insurance is based on replacement cost and claims in the area. For Midland that sounds for very high. I used to live in Midland and not aware of any of my Clients paying that much.
I suggest calling a few other Insurance Brokers to compare rates. I'm sure you can do better.