Best homeowners insurance companies in Montana for 2024

Compare the best home insurance companies in Montana

Bankrate’s insurance editorial team’s extensive research revealed that USAA, Chubb, Travelers, Allstate and State Farm are among the best Montana homeowners insurance companies. Based on premium data from Quadrant Information Services, the average cost of Montana homeowners insurance is $2,531 per year, which works out to around $211 a month.

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 its Bankrate Score for a maximum score of 5.0 out of 5.0. Below, these carriers stand out for offering comprehensive coverage and strong ratings for customer service and claims handling.

The top 5 home insurance companies in Montana

Additional Montana home insurance companies to consider

Farmers

American Modern

Cheapest home insurance companies in Montana

Home insurance is an excellent way to protect the financial investment in your home. However, paying for coverage can be a financial burden for some Montana homeowners. For homeowners with less wiggle room in their budgets, we’ve put together a list of the five cheapest home insurance companies in Montana.

How to get cheap Montana home insurance

No matter the value of your home, you don't want to spend more on your insurance than you need to. Finding the best cheap home insurance in Montana may be easier if you use the following strategies:

1. Shop around: Every insurance company uses its own proprietary methods for determining your rate. Because of this, you will get a range of quotes when shopping around, even if they are all for exactly the same coverage types and limits. Comparing personalized rates will reveal the cheapest companies for your home and circumstances.
2. Raise your credit score: Montana insurance companies can use your credit history when determining your home insurance premium. Research shows that people with stronger credit tend to file fewer claims, so giving your credit a boost may help you land a cheaper policy.
3. Maintain or repair your roof: An aging roof can lead to costly claims, especially in Montana which sees frequent winter storms. Upgrading or reinforcing your roof (and notifying your insurer of the change) may earn you a lower rate.
4. Bundle your policies: Your insurance company wants as much of your business as possible, so if you have more than one policy with a single company, you are likely to earn a lower rate on your premium. This is most often seen when you bundle your homeowners insurance with your auto coverage.

Best home insurance discounts in Montana

Home insurance discounts vary by carrier, but some of the most common options include:

How to save on home insurance policy renewals in Montana

Discounts are a smart way to lower your home insurance premium — but they are not the only way to save. At renewal, these strategies could help you secure a more favorable rate:

• Raise your deductible: This one can be tricky. Insurers usually lower your premium if you raise your deductible. However, it is important to ensure that you do not raise your deductible so high that you couldn't pay it out of pocket comfortably in the event of a claim.
• Shop around: Just because your policy is renewing doesn't mean you have to stay with the same insurer. Before renewal is a great time to shop around and compare rates.
• Consider a security system: Security systems reduce your chance of filing a claim. A security system may be worth the cost if it brings down your home insurance premium.

How much is homeowners insurance in Montana?

The average annual premium for home insurance in Montana is $2,531 per year. This is significantly higher than the national average rate of insurance, which is $2,304 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 $1,282 per year, and in Wyoming, the statewide average rate is $1,352 per year. Home insurance premiums in Montana could be more expensive because the state faces a greater risk of damaging events, like wildfires and tornadoes.

Montana homeowners insurance rates by city

Each Montana ZIP code poses different risks to an insurer: some cities may see higher levels of vandalism and break-ins, while others may be at higher risk for wildfires. Because of these varying levels of risk, home insurance rates tend to vary across the state.

What does home insurance cover in Montana?

The most common type of home insurance policy is the form HO-3. It typically provides liability coverage, medical payments, additional living expenses, personal property coverage, and coverage for your home and surrounding structures. Home insurance covers your personal property on a named-peril basis, meaning your things are protected from sources of loss, called perils, that are specifically listed out in your policy.

Financial protection works differently for your dwelling and other structures coverage. These parts of your policy operate on an open-perils basis, which means they are covered from all causes of loss except the ones that are specifically excluded from your policy.

All in all, there are 16 named perils in a standard home insurance policy, According to the Insurance Information Institute (Triple-I), these are the most common losses homeowners file claims for:

• Wind and hail: In 2021, wind and hail damage claims made up nearly 40 percent of all home insurance claims.
• Water damage and freezing: Triple-I also reports that homeowners across the nation lose around $20 billion per year in water damage.
• Fire and lightning: Around 120,000 Montana homes (which is just over a third of the state) are at moderate to high wildfire risk.

Additional home insurance coverage types 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. 20 percent of all properties in Montana have a greater than 25 percent chance of being severely affected by a flood over the next 30 years.
• Earthquake insurance: Similar to flood insurance, earthquake insurance is not included in standard HO-3 policies. Montana is the fourth-most seismically active state in the country. 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.
• Identity theft insurance: This coverage type may be included in your basic policy or may be an added endorsement that you can purchase for your policy. It covers costs involved if your identity or identifying information such as your social security number, is stolen. This may include legal services, credit monitoring and reimbursement of costs such as replacing credit cards and driver's license.

Common Montana home insurance problems

Like California, wildfires have created something of an insurance problem for Montana homeowners. In mid-2023, Montana’s Commissioner spoke on the growing problem of Montana insurers denying policies in wildfire zones or refusing to raise coverage limits — even in zones that are not considered at an elevated risk for wildfires. Montanans across the state may struggle to secure coverage from their chosen provider.

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.