Best homeowners insurance in Alaska for 2023

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

The top three home insurance companies in Alaska

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.

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.

Frequently asked questions