Best homeowners insurance companies in Alaska for 2024

Compare the best homeowners insurance companies in Alaska

Alaska residents pay an average annual cost of $986 for their homeowners insurance for $300,000 of dwelling coverage. That works out to $82 a month. This is 57 percent less the national average, which is $2,304 annually, or $192 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 strength. Based on these and other factors, we determined that USAA, Allstate and State Farm are all solid choices for Alaska homeowners.

The top 3 home insurance companies in Alaska

Additional Alaska home insurance companies to consider

Umialik Insurance Company

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.

Cheapest home insurance companies in Alaska

The average rate for $300,000 worth of dwelling coverage in Alaska is $986. However, your rate will likely be different based on your home’s unique characteristics. A homeowners insurance rate is based on a number of unique factors such as your home's age, replacement cost and location. Fortunately, our research found top insurers in Alaska offering average rates below the state average. It could be worth your while to get quotes from the following companies to see which offers you the best rate.

*based on $300K dwelling coverage

How to get cheap Alaska home insurance

Unlike car insurance, homeowners insurance is not mandated by law in Alaska. Still, there are viable reasons to protect your home with insurance. First, while the state doesn’t require you to have home insurance, your mortgage company likely will. Many lenders will ask for proof of insurance before they approve your loan, and periodically check to make sure you still have coverage. Even if you own your home outright, having ample insurance can protect you from footing the bill for a disaster out of pocket in the event of loss from perils like storms and fire.

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: It’s recommended to obtain quotes from multiple insurance companies when looking for a new policy. Most companies offer online quotes, making it easy for prospective customers to see which carrier will offer them the best rates for the coverage they need. When requesting quotes, make sure to specify the same coverage types and limits on each estimate to ensure accurate comparisons.
2. Improve your credit: One of the factors insurers consider when setting prices is your credit history. Actuarial data from the Triple-I 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.

Best 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:

How to save on home insurance policy renewals in Alaska

Once you have found the best Alaska homeowners insurance for your needs, you will want to keep that policy affordable when it's time to renew. Although the average home insurance cost in Alaska is on the low side, you don't want to pay any more than you absolutely have to. Here are a few strategies for keeping your rate down when you renew:

• Bundle home with auto: If you're happy with your homeowners coverage, consider purchasing your car insurance from the same company, which may make you eligible for a bundling discount. 
• Raise your deductible: If you can afford it, increasing your deductible is likely to reduce your premium rate. However, be careful you don't increase it more than you could comfortably pay in the event of a claim.
• Do a policy audit: Either on your own or with your agent, go over your policy each year to ensure that the coverage you initially purchased still makes sense. Perhaps the company has new discounts or other options that you might take advantage of.
• Improve your credit score: If you can bump up your credit score, you may see some savings in your premium rate, as a strong credit history often leads to discounted rates.
• Repair your roof: An old or damaged roof is likely to cost you more in premium payments, since insurers will assume you are more likely to file a claim on damage. Putting on a new roof may lower your rate.

How much is home insurance in Alaska?

The average annual cost for $300,000 of dwelling coverage in Alaska is $986, well below the national average of $2,304 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.

Alaska homeowners insurance rates by city

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Alaska?

Standard HO-3 homeowners insurance policies, the most common type of home insurance, cover you for a series of "perils," which are events that can damage your home. In Alaska, common perils include the following:

• Fire or lightning: Your policy protects you from housefires, wildfires, fires caused by lightning and smoke damage.
• Windstorm and hail damage: Hail storms or violent wind storms are generally covered by your policy.
• Water damage: Some types of water damage are covered, but flooding is not covered in HO-3 policies; you will need additional flood insurance to be protected in that event.
• Sump pump or drain backup: This type of water damage will generally be covered if you have optional sump pump coverage on your policy.
• Weight of snow, ice or sleet: Severe winter storms can cause damage to your roof or to your home's structural elements, which are generally covered.
• Theft and vandalism: Damage to your home and property or theft of your belongings is covered by standard home insurance.
• Freezing of a heating, plumbing, fire sprinkler or air conditioning system or household appliance: This may be the result of a winter storm or cold freeze.

Additional 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.

Common Alaska home insurance problems

Residents of Alaska have far different concerns, in many cases, than homeowners in other parts of the country. With distinctive weather patterns and isolated communities throughout the state that may have difficulties accessing building materials, Alaska residents need to be on top of their game when shopping for insurance. Here are a few of the challenges that they may face:

• Limited insurer availability: Not all major insurers write policies in the Last Frontier. Others may balk at writing policies in regions that see more than the average number of claims, such as vulnerable coastal regions. This may make it harder for homeowners to find robust coverage.
• Supply chain issues: Isolated as it is from the continental U.S., Alaska homeowners may pay a premium to have lumber and building supplies shipped to them if needed for a rebuild. Insurers may compensate for increased shipping costs by raising premium rates.
• Policy nonrenewal: Even homeowners who have solid coverage may find their carrier increasingly skittish about renewing their policy if they live in an area that has a relatively high rate of claims.
• Increasing rates: The rapid increase of insurance costs is a national problem, brought about by causes that include climate change and increasing replacement costs. Insurers limit their vulnerability by raising rates to compensate for this.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.