Best cheap homeowners insurance in Anchorage
Anchorage, Alaska, is home to 288,000 residents, with over 61% of Anchorage residents being homeowners. The average home insurance rate in Anchorage is $833 per year for dwelling coverage of $250,000, according to Bankrate’s 2021 study of quoted annual premiums.
Residents in Anchorage and surrounding areas of Alaska have to contend with earthquakes, volcanoes, tsunamis, wildfires and other natural disasters. One way to keep your home livable is to have enough homeowners insurance in place to pay for these and other claims that may arise. To determine the best cheap home insurance rates in Anchorage, Bankrate’s insurance editorial team compared the top homeowners insurance companies, based on market share, according to their premium, coverage and discount offerings and third-party rankings.
Best cheap home insurance companies in Anchorage
When analyzing the best cheap homeowners insurance companies offering coverage in Anchorage, we compared costs for coverage and 2020 J.D. Power Home Insurance Study scores for customer satisfaction. The top three Anchorage home insurance companies listed below offer competitive pricing for average annual premiums based on $250K in dwelling coverage.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power score|
|USAA||$559||*889 / 1,000|
|State Farm||$776||829 / 1,000|
|Allstate||$963||829 / 1,000|
*Due to membership eligibility restrictions, USAA is considered rank-ineligible by J.D. Power.
USAA offers auto, home, life and other types of insurance for military members, veterans and their families. Home sharing, identity theft, and earthquake coverage are optional endorsements homeowners can add for additional protection with USAA. Though USAA does not have as many discounts available as other carriers, it has the lowest rates on average of the best home insurance companies in Anchorage.
Though USAA ranks the highest in the J.D. Power U.S. Home Insurance Study, it is ineligible to take first place because it restricts membership to military families. With two military bases located right in Anchorage and nine total throughout Alaska, it is not surprising that USAA is the third-largest home insurer in the state.
Learn more: USAA Insurance review
As the number one home insurer in Alaska by market share, State Farm insures 32.1% of the state for homeowners insurance. State Farm has been offering auto, home and other insurance products for almost 100 years, having been in business since 1922.
Most homeowners pay for home insurance because they need financial help if they have a loss. A company’s financial strength shows its ability to pay claims. State Farm has the highest ratings possible of A++ (Superior), showing that even during a natural disaster, homes insured with the company are likely to have claims paid timely and in full.
Learn more: State Farm Insurance review
Allstate has been in business almost as long as State Farm and offers much of the same insurance options, including homeowners. Allstate is the second-largest home insurer in Alaska with 18.6% of the market share. It also ties with State Farm in sixth place for customer satisfaction on the Home Insurance Study.
Anchorage homeowners can personalize their Allstate home insurance with add-on coverage for identity theft, business property and high-value items like jewelry and musical instruments. For cheap home rates, Allstate offers discounts for making automatic payments, being claims-free, having protective devices like a burglar or fire alarm and a loyalty discount for long-term policyholders.
Learn more: Allstate Insurance review
Home insurance in Anchorage
Homeowners in Anchorage, Alaska have some unique considerations to keep in mind when searching for home insurance policies, such as the municipality’s potential for damage from earthquakes. Before settling on an insurer, it can help to know what sorts of damage are possible to build out the best coverage.
Home insurance coverage options in Anchorage
Buying a home is usually the single most expensive purchase most people make. By paying for home insurance, you can protect your investment by having the insurance company shoulder some of the cost of covered claims. These coverages may be beneficial to help you protect your home in Anchorage:
- Water backup: You can add this optional coverage onto a homeowners policy to protect the dwelling and personal property if your sump pump, drains or sewer lines backup or overflow. This coverage may also be called sewer or sump pump backup or backup of sewer and drains coverage.
- Flood insurance: Homeowners insurance companies do not provide coverage for flooding on standard policies. Anchorage homeowners may purchase flood insurance through their agent as a separate policy or directly through the National Flood Insurance Program (NFIP).
- Earthquake coverage: Some homeowners insurance companies in Anchorage offer add-on coverage for earthquakes, which may be worthwhile due to the heightened risk in the area.
- Landslide coverage: Natural disasters such as earthquakes, volcanoes and wildfires can cause landslides in and around Anchorage. Though not typically covered under a standard homeowners policy, most offer a separate endorsement for landslide coverage.
- Volcanic eruption coverage: Most homeowners insurance companies offer coverage for volcanic eruptions that cause property damage by ash, dust, lava flow or shock wave. There may be limitations to coverage, so be sure to check with your insurance agent to find out what is covered.
Home insurance discounts in Anchorage
Including discounts in your homeowners insurance policy can help keep premiums low without having to reduce coverage. Most insurance companies allow you to stack discounts, which helps Anchorage homeowners get cheap home insurance by applying all the discounts they qualify for. Here are a few discounts offered in Anchorage to consider:
- Multi-policy: One of the largest homeowners discounts available, the home and auto bundle helps policyholders who insure both policies with the same company save on their premium.
- Protective devices: Installing a burglar or fire alarm system will protect your home when you are not there and could provide a discount on your home insurance.
- Good payment history: Paying on time and in full provides a good payment history with a home insurance company and may reduce how much you pay for homeowners insurance.
- Claim-free: The longer you go without filing a claim on your home insurance policy, the more you could save.
Discounts vary by home insurance company, and so does how much you can save. Other discount options available in Anchorage, Alaska may be for loyalty, purchasing a new home, making updates to your home systems like plumbing and electrical, signing up for a new policy before the current one expires and setting up automatic payments.
Frequently asked questions
What is the best home insurance company?
The best home insurance company for Anchorage residents is one with the right coverage options to protect you and your property investment. Consider coverages, discounts, endorsements and deductible options when shopping for homeowners insurance to find the best company for you.
How much does home insurance in Anchorage cost?
Anchorage homeowners pay on average $833 per year for $250,000 in dwelling coverage. These rates are cheaper than the national average annual premium of $1,312 for the same coverage. The cost you will pay for home insurance is based on how much coverage you need, the age of the home and appliances, optional coverages selected and your claims history.
How much home insurance do I need in Anchorage?
Insurance companies base the amount of dwelling insurance you need on the cost to repair your home if it were a total loss due to a covered claim. The best way to determine your home insurance needs is to work with a licensed insurance agent to create a valuation for the home.
Bankrate utilizes Quadrant Information Services to analyze 2021 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 will differ.