What’s better than mountain biking, skiing and kayaking on a beautiful sunny day in the diverse open space terrain of Alaska? Alaska is home to diverse wildlife and the Denali, the highest peak in North America. The beautiful scenery has attracted wildlife biologists and zoologists from all over the United States.
It may however be surprising that home insurance rates are high in Alaska. The rates are close to the national average rates. Many people view Alaska as a region of extreme weather conditions. Storms, fog, and winds are very common. The state recorded the lowest temperature of -80 degrees in 1971. In addition to severe winters, Alaska also experiences thunderstorms and hail.
Alaska lies between the Pacific plate and the North American plate. Alaska experiences earthquakes occasionally also. During summer, the heat waves in Alaska are deadly. The heat waves have caused wildfires that have destroyed property worth millions in the past. The weather is generally unpredictable but Alaskans have learnt to adapt to it. That’s the whole beauty of Alaska though.
Conditions and location dictate premiums
The extreme conditions make home insurance rates competitive in Alaska. Alaska is a large state but it is sparsely populated. There are about 316,952 home units in Alaska. More than half of these homes are insured. Home insurance rates have considerably increased since 2011. The rates have risen steadily from 2011-2015 by around 6 percent.
The rates also vary depending on the geographical location of the homes. Southeast Alaska for example, has the highest rainfall amounts and the rates would therefore be high for homeowners here. It is therefore not surprising that many companies have come up to help homeowners in the state of Alaska. For the residents of Alaska, choosing an insurance company for their homes has been made easier. To learn more, read the rest of the article or enter your Zip to find insurers near you.
On average, Alaskans are paying $1,846 a month on homeownership costs. There are 317,000 houses in AK, 64% of which are occupied by owners.
- Population: 739,795
- Average value of homes that’s occupied by owners: $257,100
- Households: 250,235
- Average household income: $74,444
- High school grad or higher, percent of people age 25 years +: 92%
- Average travel time to work: 19 min
Alaska average home insurance rates
Home premiums vary from one state to another. On average it ranges between $500-$2000. According to Insurance Information Institute (III), it would cost a homeowner in Alaska an average premium of $981 annually. Nationally the average premium stands at $1,192 annually. In the last 10 years, these rates have been rising steadily. In July 2015, the average listing in Alaska stood at $284,240 while the national average stood at $284,748.
The average annual cost for residents in Alaska means that monthly, the average homeowner would pay $81 for home insurance. In 2016 (latest available data) Alaska was ranked by III 34th in home insurance premiums among the 51 states. It would therefore mean that Alaska lies somewhere in the middle when it comes to home insurance rates. Two-thirds of all the states in America charge higher rates.
|National annual average||$1,192||$1,173||$1,132|
The best homeowners companies in AK
State Farm is the largest home insurance company in Alaska. It commands the largest share in the insurance market in Alaska. State Farm has been around for nine decades. It is therefore considered a trustworthy institution. The services offered by State Farm are exceptional. Homeowners in Alaska feel secure with State Farm.
To improve on its protection policy, State Farm allows for the purchase of business insurance, flood insurance, and identity restoration. All these services are provided with a simple mobile app. The app also makes it easier for homeowners to report problems and get an instant response in times of disaster. The mobile app increases accuracy when tracking homeowners and making records.
State Farm is at the top of the list of all those companies that offer the best home insurance premiums in Alaska. AM Best and S&P have given the company strong financial ratings. J.D gave a 3 (About average) Power Circle Rating for customer satisfaction claims in their 2018 U.S. Homeowners Insurance Study.
Allstate is a smart choice for homeowners all over Alaska. Apart from discounts on premiums, their rates are considered affordable. Allstate offers extra protection depending on individual needs. The extras include data recovery, musical instruments, and even gardens. Even after filling a claim you are protected from a rise in the premium.
Allstate excels in policy management for homeowners. They keep customers educated on new ways to keep themselves safe. The company’s policy makes it possible to view the effects of making minor changes to your average premium. You will be able to trace the effect of installing something new in your home very easily and be able to budget for it later.
In 1970 this company changed its name from the initial United Services Casualty Insurance Company to USAA Casualty Insurance Company. It is based in Texas and it offers its services 24/7. The services offered are casualty and property insurance. Five decades down the line, USAA have continued to be dedicated to service provision in the insurance sector. The company has an excellent review from AM Best and S&P. USAA has been instrumental in their service for homeowners in Alaska. It is dedicated to their military customers.
Alaska Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
Source: Insurance Information Institute, AM Best, S&P, JD Power
Homeowners all over the United States are well protected by the law. It is however not a legal requirement to insure a home. More than likely, it will be your mortgage lender that will make it a requirement to insure the home. All insurance companies have their services regulated by individual state governments. Homeowners are protected by their own states from exploitation.
In addition to homeowners insurance policy, Alaska state policy requires all car owners to have liability insurance. In case of an accident, therefore, an Alaskan would be in a position to pay for the property and third-party damages using liability insurance.
The premiums in Alaska are regulated by the Alaska Division of Insurance. Regulations make it possible to access affordable premiums in Alaska. The first way is by asking for discounts from those companies that are willing and able to give them. It is also wise to compare the premiums of different companies before choosing one you can afford.
How to save money on home insurance
- Bundle your auto and home insurance.
- Shop around, submit your ZIP at the top of this page, and compare companies.
- Take steps to protect your home from disasters.
- Get a home security system.
- Choose a homeowners insurance company and stick with it.
- Make sure your credit score stays high.
Top 6 tips to choose a home insurance carrier
Have you just bought your first home in Alaska? Well, that’s amazing. And, now, you have to sign up for homeowners insurance to keep your asset safe and protected. You will be glad to know, homeowners insurance rates in the AK are around $100 less compared to the national average. There is a wide range of insurance companies to choose from here. But not all would be compatible for you. Thus, the post below offers some tips that will help you to choose a reliable homeowners insurance policy for your new Alaska home.
1. Check reviews
First, you will get a shortlist of 5-6 homeowners insurance companies. You have to get a comparative survey on each of them to find out the most suitable name for you. Check what the experts and Alaska homeowners have written about them. Check their overall reputation and experience in the industry. The one you choose should be a leading homeowners insurance company, backed by rave reviews and happy customers.
2. What’s the standard?
A reliable homeowners insurance company will not only offer you coverage for your dwelling and belongings inside your home – but will also ensure liability coverage. The liability coverage will protect you if anybody encounters an accident or injury at your premise. Make sure the company offers a transparent overview of its standard coverage package so that you can have a clear idea of what you will actually get.
3. Customization options
A standard homeowners insurance policy will offer basic coverage. But what if you want extra protection like protection for musical instruments or sports equipment and so on? Well, in that case, make sure that the company allows customization facilities so that you can have coverage for exactly what you need.
4. Check financial rating
Though this point is often overlooked, it’s an extremely important point when it comes to choosing a homeowners insurance policy. If your chosen insurance company is not financially stable, how will it pay for your claims in times of your crisis? There are independent financial rating companies that rate insurance companies. Make sure your chosen homeowners insurance company has received an A+ rating from a leading independent financial rating company.
5. Use discounts
Won’t it be great if you can save some bucks on insurance premiums? Even if you can afford the premium, rebates, and discounts are always welcome. A homeowners insurance company generally offers discounts if you take active and meaningful steps to make your home safer. So, check, whether your chosen company provides educational materials on how to save money on your insurance policy.
6. Mobile app
It’s great if your chosen insurance company comes with a mobile app. Some of the leading insurance companies today offer easy policy management as well as a claim-reporting tool on dedicated mobile apps to make lives easier for customers. It’s a “smart” world today where most of us are almost always glued to our smartphones. So, things would be more convenient if we can manage our policy and premiums in just a few touches, anytime, even while on the go.
What’s included in a typical home insurance coverage?
Homeowners insurance is essential for Alaska residents. There are multiple types of homeowners insurance that Alaska residents can choose from, but standard Alaska home insurance policies typically cover the following expenses:
- Damage to sheds and other outbuildings
- Damage to the structure of your home
- Damage to property that you keep in your home
- Medical expenses for injuries that guests suffer while at your home
- Lawsuits that arise from an injury that someone suffers on your property
- Hotel stays during a period of time when your home isn’t habitable
What companies offer Alaska residents home insurance?
While there are home insurance companies that are unique to Alaska, Alaska residents can get coverage from most national insurance companies. Here are some companies that offer homeowners insurance to Alaska residents:
- State Farm
- Liberty Mutual
- Alaska National
- Pippel Insurance
- Kenneth A Murray Insurance
- Hagen Insurance
- Randall Moss Insurance
- Travelers Insurance
Make the right choice
It’s important to compare rates between as many companies as you can. However, rates aren’t the only thing to consider. Always become familiar with what each policy covers, and find one that’s as comprehensive as possible.
Read plenty of online reviews of a homeowners insurance company that you’re considering, and make sure that some of the reviews are written by Alaska residents. Reviews of homeowners insurance companies can be found on a variety of websites, such as JD Power, AM Best , and The Better Business Bureau website. If you choose a smaller insurance company, make sure that they are accredited by the Better Business Bureau.
If you’re renting out a house or part of a house, you’ll need to get a landlord’s insurance policy. These policies are offered by some of the same companies that offer other homeowners insurance policies.
For more assistance, please contact your local state department of insurance:
Alaska Division of Insurance
- (907) 465-2515