Best homeowners insurance in Alaska of 2021
According to 2020 data, the average annual premium for homeowners insurance in Alaska based on a home with a dwelling coverage amount of $250k is $1,059. 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 always 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. To find the best Alaska home insurance, we first narrowed down providers by identifying which companies offered reliable coverage across the state, quality discounts and additional coverage options and then used third-party ratings agencies like J.D. Power & Associates to determine which providers offer the best customer satisfaction. We also looked at 2021 average rate data from Quadrant Information Services.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
Allstate sets itself apart with customizable policies to fit every type of property. Optional coverage is available to eligible customers to protect your sports equipment, landscaping, business property and even your identity and electronic data.
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. You may be able to save money if you combine your homeowners insurance policy with auto coverage or if you install a home safety system or impact-resistant roofing.
While USAA is often left out of official recognition due to the fact that it only writes policies for military personnel and their eligible family members, 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.
Average homeowners insurance cost in Alaska
Getting a quote for homeowners insurance in Alaska 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 to get an estimate for what it would cost to insure your home.
To give you a rough idea, the average cost of home insurance in Alaska is $1,059 compared to the national average of $1,445. It’s difficult to compare this to other states because Alaska does not have a close proximity; however, Washington’s average is $975 while Oregon’s average is $776.
Home insurance considerations in Alaska
Alaska common causes of loss
Alaska’s geographical location means that weather is one of the biggest concerns for homeowners. It’s fairly common knowledge that Alaska has extreme winter conditions for a good part of the year. However, you may not know that some parts of the state have concerns in the summer too with the effects of dry heat. Alaska’s 2019 wildfire season broke records with over 2.5 million acres lost to fire. Here are the most common causes of loss in Alaska:
Common coverages 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, many people in Alaska consider these coverages:
- Additional living expenses protection: This may reimburse you for living expenses such as hotels and food if your home becomes uninhabitable.
- Dwelling coverage: This may offer protection for your home’s physical structure, including its frame, roof, walls, doors and windows.
- Guest medical protection: This covers the medical fees of anyone who is injured while on your property.
- Liability protection: This pays for your legal fees and any damages if someone sues you for bodily injury or property damage.
- Other structures: If your home includes a shed, detached garage or guest house, this type of coverage will protect those, too.
- Personal property coverage: This covers the personal belongings and items inside your home.
Frequently asked questions
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 $1,059 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.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.