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Best homeowners insurance in Alaska for 2023

Allstate, State Farm and USAA are writing some of the best homeowners insurance in The Last Frontier.

Updated Apr 06, 2023
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Compare the best homeowners insurance companies in Alaska

Alaska residents pay an average annual cost of $1,056 for their homeowners insurance for $250,000 of dwelling coverage. That works out to $88 a month. This is 26 percent below the national average, which is $1,428 annually, or $119 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.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
AM Best
A++
J.D. Power score
884
/1,000
Average monthly premium
$74
Average annual premium
$886
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power score
815
/1,000
Average monthly premium
$100
Average annual premium
$1,194
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power score
829
/1,000
Average monthly premium
$90
Average annual premium
$1,085
Read review
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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.

*USAA not officially ranked with J.D. Power due to eligibility restrictions

The top three home insurance companies in Alaska

Best for military-focused coverage options

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884 AM Best: A++

Average annual premium

$ 886 for $250k dwelling
USAA Review

Explore Bankrate's review

Why USAA made our list: USAA tends to show up near the top of any list focused on customer service and only writes policies for military personnel, veterans and qualifying family members. It also has the highest possible rating with AM Best, indicating that it has historically had the financial resources to pay out even after an extensive disaster. Its rates are the lowest of our chosen companies and there is a good range of optional coverage, allowing you to personalize your policy. You need to purchase your policy either over the phone or via email. This is easy to do on the website, which also features a robust online community for military personnel.

Who USAA may be good for: USAA only sells policies to current and former military members and their immediate families. If you are stationed at Elmendorf or one of the eight other military bases in the state, it's worth getting a quote from the company for their military-focused policies.

Best for digital tools

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 1,194 for $250k dwelling
Allstate Review

Explore Bankrate's review

Why Allstate made our list:  Allstate has an excellent website, with extras such as a common and costly claims near you feature that lets you know what sort of claims are most likely to be filed from your ZIP code. Its coverage choices are solid at a reasonable rate for Alaska homeowners. There are a handful of discounts to help you save money, including a welcome discount, home buyer discount and a general discount of up to 25 percent if you bundle homeowners insurance with auto.

Who Allstate may be good for: Allstate’s online and mobile app presence make it simple for those who are comfortable with handling their insurance business digitally. You can pay your bill, file or track a claim and learn more about how home insurance works very simply using Allstate's digital tools. Still, the company has local agents in many of Alaska's cities, from Fairbanks to Wasilla, making it a good option for policyholders who prefer to handle their insurance in-person. 

Best for local agents

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829 AM Best: A++

Average annual premium

$ 1,085 for $250k dwelling
State Farm Review

Explore Bankrate's review

Why State Farm made our list: State Farm is the largest writer of homeowner insurance policies in the U.S., according to the Insurance Information Institute, and the company has a solid presence in Alaska. There are multiple agencies in some of the state's larger cities, such as Anchorage, but even smaller urban areas like Sitka and North Pole have local State Farm agents available to help you find the best coverage for your needs. The company's average Alaska premium rate is slightly above the state average, but you get features worth your premium: a state-of-the-art website with an informational blog and helpful digital tools, excellent financial stability and an above-average ranking with J.D. Power for customer satisfaction. 

Who State Farm may be good for: If you like the experience of having a local agent available to answer your questions and guide you through the policy purchase or claims process, State Farm may be a good choice. Even with its large local presence, the company also has good digital tools and it's easy to manage your policy online. 

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.

How much is home insurance in Alaska

The average annual cost for $250,000 of dwelling coverage in Alaska is $1,056, well below the national average of $1,428 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.

$150K
$716
$250K
$886
$350K
$1,037
$450K
$1,184
$750K
$1,609
$150K
$800
$250K
$1,194
$350K
$1,715
$450K
$2,226
$750K
$3,705
$150K
$772
$250K
$1,085
$350K
$1,319
$450K
$1,628
$750K
$2,657
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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.

Your ZIP code plays a role in determining your premium. Areas that see a high number of claims filed are more likely to see more expensive coverage. At the same time, if your home is in a region where natural disasters are few, your policy is likely to be less expensive. Here are a few cities in Alaska where rates are lower than the state average.

  • Angoon: $937 — 11 percent below the state average
  • Tenakee Springs: $959 — 10 percent below the state average
  • Homer: $967 — 8 percent below the state average
  • Gustavus: $972 — 8 percent below the state average
  • Karluk: $976 — 8 percent below the state average

Some areas of Alaska may see more claims on average, and these regions are likely to have higher rates. Keep in mind that your personal rate will also depend on the type and amount of coverage you are asking for, as well as your credit-based insurance score, your home's age and condition and other factors.

  • Nenana: $1,181 — 11 percent above the state average
  • Dillingham: $1,173 — 10 percent above the state average
  • Old Harbor: $1,169 — 10 percent above the state average
  • Clam Gulch: $1,167— 11 percent above the state average
  • Tanacross: $1,166 — 10 percent above the state average

How to find the best cheap home insurance in Alaska

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 save you thousands of dollars 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: One way to get the best rates is to ask for quotes from several insurers. Each carrier has their own way of determining rates, so you're likely to get a range of prices and can pick the one that best suits your needs and budget.
  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.

Common 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:

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.
Insurance Home
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

Written by
Mary Van Keuren
Insurance Contributor

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute