The Best Homeowners Insurance in Montana for 2023 – NerdWallet

The average cost of homeowners insurance in Montana is $2,065 per year, or about $172 per month, according to a NerdWallet analysis. That’s more 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 Montana.

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.

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.

Montana homeowners can also sign up for free wildfire defense services. These services include personalized recommendations for protecting your home and deployment of firefighters to your house if a wildfire is approaching.

As America’s largest insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

We like Nationwide for its wide variety of coverage options. For example, its standard homeowners insurance policy generally includes ordinance or law coverage, which can help pay to bring your home up to current building codes after a covered claim. You can add other coverage for things like identity theft and damage from backed-up sewers and drains.

Depending on how much personal assistance you need, you can get a quote for homeowners insurance on the Nationwide website or work with a local agent instead. You can also use the website to pay bills, file claims or check claim status.

USAA sells homeowners insurance to veterans, active military and their families. If you fall into one of those groups, you might want to look into USAA’s offerings. The company’s homeowners policies include some unique perks such as deductible-free coverage for military uniforms and coverage for identity theft.

Homeowners in Montana can take part in the company’s Connected Home program, which gives you a discount on your policy if you buy and install approved smart home devices. These include water leak sensors, cameras and thermostats.

The average annual cost of home insurance in Montana is $2,065. That’s 13% more than the national average of $1,820.

In most U.S. states, including Montana, 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 Montana, those with poor credit pay an average of $4,405 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s more than twice as much as those with good credit.

How much you pay for homeowners insurance in Montana depends on where you live. For instance, the average cost of home insurance in Billings is $2,250 per year, while homeowners in Missoula pay $1,525 per year, on average.

Here are the insurers we found with average annual rates below the Montana average of $2,065.

When shopping for the best home insurance, Montana homeowners should consider the risk of wildfire, flooding, winter weather and hailstorms.

Lightning strikes, dry conditions and high winds can bring significant wildfires to Montana’s forests. As a result, homeowners living near wooded areas may find their properties at risk.

Standard homeowners insurance typically covers damage caused by wildfire, though residents of high-risk areas may find exclusions in their policies. Pay particular attention to the dwelling coverage limit, which is how much the insurance company will pay to rebuild your house. Check with your insurer to ensure you have enough coverage to rebuild if necessary.

Heavy rain and snowmelt are two causes of flooding across Montana. Standard homeowners insurance does not cover flood damage, so homeowners in flood-prone areas may need to purchase separate flood insurance.

To find out 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.

Harsh winter conditions in Montana mean heavy snow, wind, ice and freezing temperatures. When you review your homeowners policy, make sure it covers damage like roof collapse due to snow accumulation or bursting pipes.

Homeowners insurance generally covers winter storm-related damage, 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.

Hail as large as a baseball is possible when spring and summer hailstorms come through Montana. These can significantly damage roofs, siding and windows.

Read your home insurance policy to make sure you have adequate coverage in case of hail. You may have a separate deductible for hail damage. These are often a flat rate, such as $1,000, or a percentage of your dwelling coverage. For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for hail claims. So, if your house has $250,000 worth of dwelling coverage, you’d have to pay for the first $2,500 of hail damage yourself.

The Montana Commission of Securities and Insurance oversees the insurance industry in the state. In addition to practical regulation, such as licensing insurers, the commission provides consumer information on the insurance industry. It’s also the place to go if you’re having a dispute with your insurer, as you can file a complaint through its online form. You can also call the commission’s consumer advocate division at 800-332-6148.