The Best Homeowners Insurance in Alaska for 2023 – NerdWallet

The average cost of homeowners insurance in Alaska is $1,325 per year, or about $110 per month, according to a NerdWallet analysis. That’s less than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in Alaska.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the best homeowners insurance companies.

America’s largest home insurer celebrated its 100th anniversary in 2022. One useful endorsement you may be able to add to a State Farm policy is an inflation guard rider, which automatically increases your policy limits to make sure your coverage doesn’t fall short.

Chubb caters to high-value homes and draws far fewer consumer complaints than expected for a company of its size, according to the National Association of Insurance Commissioners. Its home insurance policies come with some great perks, including extended replacement cost in case it costs more than your dwelling limit to rebuild your home after a disaster.

Chubb policyholders may also be able to take advantage of the company’s HomeScan service, which uses infrared cameras to look for problems behind the walls of your home.

Country Financial has three different levels of homeowners coverage to help you choose the package that’s best for you. You also have the option to add extra coverage for the structure of your home, in case inflation drives up the cost of rebuilding more than you expect.

Country Financial sells homeowners insurance through local representatives. The company has drawn far fewer complaints than expected to state regulators.

USAA sells homeowners insurance to veterans, active military members and their families. If that description fits you, you may want to consider a USAA policy. That’s because the company’s homeowners insurance has certain features that other insurers may charge extra for.

For example, USAA automatically covers your personal belongings on a “replacement cost” basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy brand-new replacements for your stuff.

The average annual cost of home insurance in Alaska is $1,325. That’s 27% less than the national average of $1,820.

In most U.S. states, including Alaska, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Alaska, those with poor credit pay an average of $1,835 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 38% more than those with good credit.

How much you pay for homeowners insurance in Alaska depends on where you live. For instance, the average cost of home insurance in Anchorage is $1,105 per year, while homeowners in Fairbanks pay $1,250 per year, on average.

Here are the insurers we found with average annual rates below the Alaska average of $1,325.

Alaskans are likely aware of the risks that come with winter storms and freezing temperatures. However, you’ll also need to make sure to consider the possibility of earthquakes, wildfires, volcanic activity and flooding.

If you’re shopping for home insurance in Alaska, make sure to read your policy carefully so you understand what’s covered and what isn’t.

Alaska sees long winters with freezing temperatures, heavy snowfall and icy conditions. Homeowners should be aware of the damage this can bring to their homes, including roof and structural damage caused by the weight of snow and water damage due to frozen pipes.

Homeowners insurance generally covers winter storm-related damages, but some types of winter weather damage may require extra coverage. For instance, you’ll typically need a separate flood insurance policy to cover flood damage caused by snowmelt.

Alaska is one of the most seismically active areas of the world. Earthquakes can be frequent and of high magnitude, posing significant risks to homeowners. Standard homeowners insurance policies do not typically cover structural damage due to an earthquake. If you live in an area with higher risk, you may want to buy additional earthquake insurance.

Earthquake insurance often has a separate deductible, which can be around 10% of the coverage on your policy. For example, if you have a 10% deductible on $200,000 of coverage, you would need to pay a $20,000 deductible for earthquake damage before your insurance covers anything. When shopping for earthquake insurance, pay attention to the deductible so you know what you’ll potentially pay out of pocket

Wildfires are less common in Alaska than in other forested areas of the U.S. However, the risk and severity of wildfires in Alaska is predicted to increase significantly due to climate change. Homeowners insurance typically covers damage caused by fire, including wildfires, but make sure to read your policy so you understand any exclusions.

Alaska has over 130 volcanoes and is home to most of the volcanic activity in the U.S. Fortunately for homeowners, volcanic damage is typically covered by standard home insurance policies. Additionally, most Alaskan volcanoes are remote, and ash fallout is typically what a community may encounter after an eruption. However, the weight of heavy ash fallout, especially when mixed with rain or snow, could cause a roof to collapse.

Alaska often sees flooding from snowmelt, coastal storm surge, ice jams in rivers and heavy precipitation. Standard homeowners insurance policies typically don’t cover flood damage. As a result, homeowners in flood-prone areas may need to purchase separate flood insurance.

To learn more about your risk, check out the Federal Emergency Management Agency’s flood maps and riskfactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.

Remember that while you can purchase flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

The Alaska Division of Insurance oversees the state’s insurance industry. You can find consumer resources on its site, and you can call 907-269-7900 if you need help while filing an insurance claim or have other questions about home insurance specific to Alaska. If you need to file a complaint against your home insurance, you can do so online, by fax or by mail.

Amanda Shapland contributed to this story.