For homeowners in all geographic locations, finding a home insurance policy can be a challenging process that requires time, research and effort. But homeowners in Alaska face an additional challenge: many of the largest United States insurance companies, including Nationwide and Progressive, don’t offer policies in this state. With such limited options, finding the best Alaska homeowners insurance isn’t easy.
Despite a lack of insurance choices, homeownership in Alaska is far from out of the norm. U.S. Census data shows that around two thirds of Alaskan households own their home, totaling 205 million families. Yet the National Association of Insurance Commissioners reports that insurers wrote just $1.6 trillion in property insurance premiums for Alaskans in 2018. This may sound like a lot, but compared to the rest of the country, Alaska is the second least insured state for homeowners multiple peril policies.
Far too many Alaskan homeowners are underinsured, but you don’t need to be among them. We’ve picked out the best Alaska homeowners insurance companies to help you start your search for coverage.
Best home insurance companies in Alaska
Not every home insurer services Alaska, but there are still plenty of well-respected companies to choose from. Here are customers’ top picks according to the J.D. Power 2019 U.S. Home Insurance Study.
- State Farm: One of the larger home insurers to service Alaska, State Farm offers policies that protect your dwelling and property from some of the state’s most common perils, such as snow and ice, frozen plumbing and fire. Save money if you combine your homeowners insurance policy with auto coverage, or if you install a home safety system or impact-resistant roofing. State Farm ranks fourth in the nation with J.D. Power with a 4-star rating and has an A++ financial stability rating from AM Best.
- Allstate: Allstate is another highly rated insurance company in Alaska that sets itself apart with customizable policies to fit every type of property. Optional coverage is available to protect your sports equipment, landscaping, business property and even your identity and electronic data. Allstate may only have a 3-star rating from J.D, Power, but it does receive A+ ratings from both AM Best and the Better Business Bureau.
- Country Financial: Country Financial only operates in 19 U.S. states, but Alaska is one of them. The company sells three different home insurance policies that range from basic coverage to a more complete premier option. This relatively small provider can still keep up with the major players in home insurance; Country Financial matches Allstate’s ratings with 3 stars from J.D. Power, an A+ from AM Best and an A+ from the BBB.
- USAA: While USAA is often left out of official recognition due to the fact that it only writes policies for military personnel, this provider deserves a mention. With nine military bases across the state, Alaska is home to nearly 27,000 servicemembers. If you or a family member are among them, this is certainly a home insurance provider to consider. USAA is regularly commended for its excellent customer service, receiving a perfect 5-star rating from J.D. Power and even outscoring every other competitor on the list. The company also receives the best possible financial strength rating of A++ from AM Best.
To find the best Alaska home insurance, we first narrowed down providers by identifying which companies offered reliable coverage across the state. We then ranked insurers by comparing policies, pricing and third-party evaluations from agencies like J.D. Power, AM Best, the Insurance Information Institute and the National Association of Insurance Commissioners.
|State Farm||Allstate||Country Financial||USAA|
|J.D. Power rating||4/5||3/5||3/5||5/5|
|AM Best rating||A++||A+||A+||A++|
Average homeowners insurance cost in Alaska
According to data from the Insurance Information Institute, homeowners in Alaska pay an average of $959 in home insurance premiums every year. This is fairly affordable compared to other U.S. states. In fact, Alaska is only the 37th most expensive state for home insurance and is nearly 25% cheaper than the national average of $1,211.
|State||Average cost of home insurance|
Getting a quote for homeowners insurance in Alaska, however, isn’t always easy. Even insurers that offer online quotes in other states often skip this service for homes in Alaska, instead preferring to work with independent agents in the area. This means you’ll probably need to make a few phone calls just to get an estimate for what it would cost to insure your home.
Home insurance coverage options in Alaska
Due to the state’s proximity to the Arctic Circle, Alaska homes are often subject to extreme weather conditions that aren’t found in other states. For complete protection from hazards most common to the northernmost state, Allstate recommends the following types of coverage:
- Dwelling coverage: Offers protection for your home’s physical structure, including its frame, roof, walls, doors and windows.
- Other structures: If your home includes a shed, detached garage or guest house, this type of coverage will protect those, too.
- Personal property coverage: Covers the personal belongings and items inside your home.
- Liability protection: Pays for your legal fees and any damages if someone sues you for bodily injury or property damage.
- Guest medical protection: Covers the medical fees of anyone who is injured while on your property.
- Additional living expenses protection: Reimburses you for living expenses such as hotels and food if your home becomes uninhabitable.
Common causes of home insurance losses in Alaska
Alaska’s geography means that weather is a major concern for home insurance losses. While it’s common knowledge that Alaskans battle extreme winter conditions for a large part of the year, you may not know that some parts of the state also suffer the effects of dry heat during summer months. In 2019, Alaska’s wildfire season broke records with over 2.5 million acres lost to fire.
Frequently asked questions
What is the best homeowners insurance in Alaska?
According to customer satisfaction ratings from J.D. Power, State Farm is the best home insurer that offers coverage in Alaska.
How do I get homeowners insurance in Alaska?
To get insurance for your home in Alaska, you should start by finding out which companies sell policies in your ZIP code. You may need to work with a local independent insurance agent who can help you navigate the complexities of homeowners insurance policies in Alaska.
How much does home insurance cost in Alaska?
The average annual cost of homeowners insurance in Alaska is $959 according to the Insurance Information Institute.
Do I need home insurance in Alaska?
Data shows that Alaskan homeowners are underinsured, but it’s always a good idea to have home insurance. Policies can protect you from the costs of weather damage, theft, lawsuits and more.