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Best homeowners insurance in Montana of 2023
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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our
What To Know First
Best home insurance companies in Montana
If you are searching for home insurance in the Treasure State, we did some research to help you find the best home insurance companies in Montana. As part of our review process, we looked at each company’s policy offerings, insurance rates and discounts for homeowners insurance, as well as financial strength and customer satisfaction ratings from third-party agencies like S&P, Moody’s, AM Best and J.D. Power. The better a company performed in each of these categories, the higher their Bankrate Score for a maximum score of 5 out of 5. Below, these carriers stand out for offering comprehensive coverage and generous discounts, plus strong ratings for customer service and claims handling.
USAA is one of the highest-scoring insurance companies on the market when it comes to things like J.D. Power’s customer satisfaction studies, but it only serves homeowners who are active duty or retired military service members or their family members. In addition to excellent customer satisfaction and financial strength, USAA also offers robust coverage. Standard policies include all the basics, plus military uniform coverage. Earthquake insurance and home-sharing coverage are also available.
Learn more: USAA Insurance Review
State Farm is the largest home insurance provider in the country, with 18% of the total market share. Montana homeowners can take advantage of State Farm’s generous discounts and helpful online tools, plus a highly-rated mobile app with claims reporting. If you need to meet with an agent to discuss your policy, State Farm has locations in 12 Montana cities.
Learn more: State Farm Insurance Review
Chubb could be an ideal choice for Montanans who want to save money on their home insurance policy. Depending on your home’s features and characteristics, Chubb could add additional discounts for home and safety devices, recent renovations and new construction. Although the discounts can range from 10-20%, the company’s policy offerings tend to be more standard compared to other carriers that offer a variety of add-on options.
Learn more: Chubb Insurance Review
Allstate is the second-most expensive provider on our list, but Montana homeowners get access to unique coverage options like green improvement reimbursement coverage, yard and garden coverage, sports equipment coverage, musical instruments coverage and more. Allstate also offers a few common discounts that can help lower your premium.
Learn more: Allstate Insurance Review
How much is homeowners insurance in Montana?
The average annual premium for home insurance in Montana is $1,957 per year. This is significantly higher than the national average rate of insurance, which is $1,393 per year. Many factors could be contributing to Montana’s higher-than-average home insurance costs, such as inflation affecting the cost of labor and materials or a rise in covered losses.
In fact, the cost of homeowners insurance in Montana is higher than in most neighboring states. Idaho’s statewide average premium for home insurance is $936 per year, and in Wyoming the statewide average rate is $1,144 per year. Home insurance premiums in Montana are more expensive because the state faces a greater risk of losses, like wildfires and tornadoes.
Home insurance in Montana
Although Montana is largely remote, the state experiences its fair share of extreme weather. From blizzards to severe hail storms to wildfires, homes across Montana are at risk of damage from various weather-related risks. Fortunately, knowing the most common causes of loss in different ZIP codes and how homeowners insurance might be able to address them can help protect your home.
Common causes of loss in Montana
Being prepared for a natural disaster could help inform a homeowners insurance policy with comprehensive coverage. Some common causes of loss include:
- Lightning and fire damage: According to the National Interagency Coordination Center (NICC), a federal agency that coordinates responses to natural disasters, nearly 750,000 acres burned in Montana due to fire. Of that, almost 570,000 acres burned due to lightning storms, with the rest attributed to human causes.
- Water damage and flooding: Depending on where your home is located, it may be in or near a designated flood zone. Since 2013, FEMA has recorded five Major Disaster Declarations related to flooding, with two occurring in 2018 and another in 2019. This increase in flooding incidents in recent years could make having flood insurance a priority for many homeowners.
- Wind, storm and hail damage: High winds and severe storms could cause significant and costly damage to homes. According to data from the National Oceanic and Atmospheric Administration and collected by the Great Falls Tribune, Montana has experienced an average of 5 tornadoes per year, causing an average of $6.6 million in damages from wind and related storms.
Home insurance coverage options in Montana
Part of the home insurance buying process is choosing coverage options and policy limits tailored to your home. While some policy features come standard and can be adjusted, others need to be purchased separately. These include:
- Flood insurance: Damage from flooding could be a major concern depending on where your home is located. As floods are excluded from standard homeowners insurance policies, you will need to purchase a separate policy either from the National Flood Insurance Program (NFIP) or from a private carrier.
- Earthquake insurance: Similar to flood insurance, earthquake insurance will need to be purchased separately from homeowners insurance. Most of Montana’s seismic activity occurs in the western portion of the state, making earthquakes more of a concern for homes in this area.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a clean claim history and good credit. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.