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Best homeowners insurance companies in Alaska for 2024

Updated Jun 01, 2024
USAA, Allstate and State Farm are writing some of the best homeowners insurance policies in the Last Frontier.
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Compare the best homeowners insurance companies in Alaska

Alaska residents pay an average annual cost of $987 for their homeowners insurance for $300,000 of dwelling coverage. That works out to $82 a month. This is 56 percent less the national average, which is $2,230 annually, or $186 a month. Your personal rates are likely to differ, as they are based on information specific to you and your property.

Based on data supplied by Quadrant Information Services, we determined the average premium charged by Alaska homeowners insurance companies. We also looked at each company's ranking in the J.D. Power U.S. Home Insurance Study, which measures customer satisfaction, and their AM Best rating for financial stability. Based on these and other factors, we determined that USAA, Allstate and State Farm are all solid choices for Alaska homeowners.

Insurance company J.D. Power Average monthly premium Average annual premium
881
/1,000
$83
$993
809
/1,000
$97
$1,158
829
/1,000
$84
$1,008
*Premiums are for $300K in dwelling coverage **USAA not officially ranked by J.D. Power due to eligibility restrictions

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Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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Bankrate's trusted insurance industry expertise

Read our full methodology

The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

46

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

The top 3 home insurance companies in Alaska

Best for military-focused coverage

USAA

4.7

Rating: 4.7 stars out of 5

Avg. premium for $300K dwelling

$83/mo

Avg. premium for $300K dwelling

$993/yr

Customer satisfaction

881/1,000

Best for digital tools

Allstate

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$97/mo

Avg. premium for $300K dwelling

$1,158/yr

Customer satisfaction

809/1,000

Best for local agents

State Farm

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$84/mo

Avg. premium for $300K dwelling

$1,008/yr

Customer satisfaction

829/1,000

Additional Alaska home insurance companies to consider

Umialik Insurance Company

Umialik Insurance Company

Who this may be best for

Homeowners who wish to work with an understanding local company

Umialik Insurance Company is an Anchorage-based insurer that is part of the Western National Insurance group, which writes policies in 20 states. As it is a smaller company, it isn't rated for customer service by J.D. Power, but it does have an A+ (Superior) rating from AM Best, suggesting that it would not have any issues paying out on claims in the event of a disaster. It has been in business since 1981, writing commercial and personal policies that are specifically geared toward the needs of Alaskans.

How Bankrate chose the best home insurance companies in Alaska

Bankrate analyzed multiple factors, from average price to the availability of discounts, to determine the best Alaska homeowners insurance companies. Using data from Quadrant Information Services and our team’s own deep understanding of the insurance industry in Alaska, we then calculated a Bankrate Score for each insurer on a five-point scale. A higher score indicates a company that performed well across our multiple research areas at a reasonable rate for Alaska homeowners.

Cheapest home insurance companies in Alaska

Although the average rate for $300,000 in dwelling coverage is $987 in Alaska, your own rate is likely to differ from this, and may even be less. Your rate is based on a number of factors that are unique to you and your situation, such as your credit rating and age, as well as your home's age and location. Two of our three top picks for the best homeowners insurance in Alaska offer average rates that are below the state average. It could be worth your while to get quotes from all three, to see who offers you the best rate.

Carrier Monthly premium for $300k coverage Annual premium for $300k coverage Savings vs state avg. for $300k coverage
Umialik
$66
$790
- $197
$83
$993
+ $6
$84
$1,008
+ $21

*based on $300K dwelling coverage

How to get cheap Alaska home insurance

Although home insurance, unlike car insurance, is not required by law in Alaska, it's still important to have a policy to protect your investment in your home. If you have a mortgage, your lender may require you to carry homeowners insurance, but having insurance can help protect you financially in the event of a catastrophe even if you own your home outright.

Of course, you don't want to pay more than is necessary for your coverage. Here are a few ways to save:

  1. Shop around and compare rates: It’s recommended to obtain quotes from multiple insurance companies when looking for a new policy. Most companies offer online quotes, making it easy for prospective customers to see which carrier will offer them the best rates for the coverage they need. When requesting quotes, make sure to specify the same coverage types and limits on each estimate to ensure accurate comparisons.
  2. Improve your credit: One of the factors insurers consider when setting prices is your credit history. Actuarial data from the Insurance Information Institute indicates consumers with poorer credit histories have a higher frequency of filing home insurance claims. Having a better credit record often leads to better rates.
  3. Maintain your roof: An old or damaged roof could be the cause of a claim against your policy and may even disqualify you for coverage. Your insurance company is likely to ask you how old your roof is when you request a quote. A newer roof may net you a lower premium rate.

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Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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Best home insurance discounts in Alaska

Discounts can also help you save money on Alaska homeowners insurance, and most insurers offer at least a few. Here are some common discounts available from Alaska insurance carriers for which you may qualify:

Bundling is one of the most common and most impactful discounts. It allows customers to save on premiums for both their home and auto policies by buying them through the same insurance company.
Some insurers offer a discount if you stay with the company for a certain number of years. Some may even offer a discount just for switching to the company.
If you set up EFT payments that automatically deduct your monthly premium payment from your bank account, you could earn savings.
If you go a period of time without filing a claim, you may earn a discount. This could be three to five years, depending on the insurer.
If you install smoke alarms, a sprinkler system or burglar alarm in your home, your insurer may reward you with a reduced premium.

How to save on home insurance policy renewals in Alaska

Once you have found the best Alaska homeowners insurance for your needs, you will want to keep that policy affordable when it's time to renew. Although the average home insurance cost in Alaska is on the low side, you don't want to pay any more than you absolutely have to. Here are a few strategies for keeping your rate down when you renew:

  • Bundle home with auto: If you're happy with your homeowners coverage, consider purchasing your car insurance from the same company, which may make you eligible for a bundling discount. 
  • Raise your deductible: If you can afford it, increasing your deductible is likely to reduce your premium rate. However, be careful you don't increase it more than you could comfortably pay in the event of a claim.
  • Do a policy audit: Either on your own or with your agent, go over your policy each year to ensure that the coverage you initially purchased still makes sense. Perhaps the company has new discounts or other options that you might take advantage of.
  • Improve your credit score: If you can bump up your credit score, you may see some savings in your premium rate, as a strong credit history often leads to discounted rates.
  • Repair your roof: An old or damaged roof is likely to cost you more in premium payments, since insurers will assume you are more likely to file a claim on damage. Putting on a new roof may lower your rate.

How much is home insurance in Alaska?

The average annual cost for $300,000 of dwelling coverage in Alaska is $987, well below the national average of $2,230 per year. The rate may be lower because the type of natural disasters that Alaska is prone to — largely earthquakes and flooding — are not covered by a basic HO-3 homeowner policy. Both of those perils would only be covered if you have an endorsement or supplemental policy covering you. On the other hand, Alaska faces severe winters, which may cause damage to homes and properties, so it’s worth considering what coverage types can help build a robust policy for Alaska homeowners.

Alaska homeowners insurance rates by city

  • Skagway: $824 per year — 17 percent below state average
  • Homer: $831 per year — 16 percent below state average
  • Eagle River: $845 per year — 14 percent below state average
  • Haines: $855 per year — 13 percent below state average
  • Girdwood: $855 per year — 13 percent below state average
  • Denali National Park: $1,549 per year — 57 percent above state average
  • Tununak: $1,501 per year — 52 percent above state average
  • Koyukuk: $1,494 per year — 51 percent above state average
  • Koyuk: $1,489 per year — 51 percent above state average
  • Anaktuvuk Pass: $1,434 per year — 45 percent above state average

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Alaska?

Standard HO-3 homeowners insurance policies, the most common type of home insurance, cover you for a series of "perils," which are events that can damage your home. In Alaska, common perils include the following:

  • Fire or lightning: Your policy protects you from housefires, wildfires, fires caused by lightning and smoke damage.
  • Windstorm and hail damage: Hail storms or violent wind storms are generally covered by your policy.
  • Water damage: Some types of water damage are covered, but flooding is not covered in HO-3 policies; you will need additional flood insurance to be protected in that event.
  • Sump pump or drain backup: This type of water damage will generally be covered if you have optional sump pump coverage on your policy.
  • Weight of snow, ice or sleet: Severe winter storms can cause damage to your roof or to your home's structural elements, which are generally covered.
  • Theft and vandalism: Damage to your home and property or theft of your belongings is covered by standard home insurance.
  • Freezing of a heating, plumbing, fire sprinkler or air conditioning system or household appliance: This may be the result of a winter storm or cold freeze.

Additional home insurance coverage types in Alaska

Most insurers offer optional coverage types, called endorsements, that give extended financial protection to your policy. These add to the cost of your policy, but provide more robust coverage and are often worth considering.

  • Flood insurance: Alaska is known for frequent flooding, especially areas along the coast. This flooding may cause extensive damage to homes and property. Standard HO-3 home insurance policies do not include flood coverage. Your insurer may be able to add supplemental flood insurance to your policy, either from a private insurer or the National Flood Insurance Program, managed by FEMA.
  • Water backup: Damage caused by your drain or sump pump breaking or overflowing is not covered by basic insurance. Most insurers offer an endorsement that will cover this damage that Alaska homeowners may want to consider. This is essential coverage if you have a basement.
  • Scheduled personal property: Your basic policy covers your belongings up to a certain limit. If you have items with a high value, such as jewelry, artwork or electronics, you may need additional coverage to be sure you're fully protected against their loss. Ask your agent if this type of coverage would be right for you.

Related content:

Common Alaska home insurance problems

Residents of Alaska have far different concerns, in many cases, than homeowners in other parts of the country. With distinctive weather patterns and isolated communities throughout the state that may have difficulties accessing building materials, Alaska residents need to be on top of their game when shopping for insurance. Here are a few of the challenges that they may face:

  • Limited insurer availability: Not all major insurers write policies in the Last Frontier. Others may balk at writing policies in regions that see more than the average number of claims, such as vulnerable coastal regions. This may make it harder for homeowners to find robust coverage.
  • Supply chain issues: Isolated as it is from the continental U.S., Alaska homeowners may pay a premium to have lumber and building supplies shipped to them if needed for a rebuild. Insurers may compensate for increased shipping costs by raising premium rates.
  • Renewal refusals: Even homeowners who have solid coverage may find their carrier increasingly skittish about renewing their policy if they live in an area that has a relatively high rate of claims.
  • Increasing rates: The rapid increase of insurance costs is a national problem, brought about by causes that include climate change and increased claims. Insurers limit their vulnerability by raising rates to compensate for this.

!

How climate change is impacting Alaska homeowners

Climate risk impacts all areas of the U.S., but few regions have seen as much impact as Alaska. These impacts may cause an increase in homeowners insurance rates in the coming decades. An update from the Environmental Protection Agency of the U.S. government noted the following:

  • Over the past 60 years, Alaska's average temperature has increased by three degrees Fahrenheit. This is twice as much as the increase compared to the rest of the U.S.
  • Winter temperatures have increased at twice that rate, an average of six degrees Fahrenheit.
  • These increases have a great impact on the state and its residents. This includes an earlier breakup of ice on Alaskan bodies of water, which can cause flooding in nearby communities.
  • It is projected that there will be an additional increase of two to four degrees by the middle of this century.
  • It is also projected that rainfall will increase, but at the same time, the state will become drier due to greater evaporation. This, plus the higher temperatures, may lead to an increase in wildfires.
  • Erosion of existing coastal areas will increase as permafrost thaws, leading to disasters for those living in seaside communities.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze June 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 
5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.