Best homeowners insurance in Alaska for 2022

Jessica Olivo

By 

Jessica Olivo

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

Updated May 1, 2022

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While homeowners in Alaska may not have to worry about tornados or hurricanes, the Last Frontier sees its fair share of wildfires and strong windstorms. Fortunately, homeowners insurance, an important asset in the face of any natural disaster, is relatively inexpensive. 

The average cost of homeowners insurance in Alaska is $1,446 per year or $120 a month. This is around 24% lower than the national average of $1,899. 

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But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Alaska.  

Best homeowners insurance companies in Alaska

Of the companies we looked at, Western National has the lowest home insurance rate in Alaska, with an average yearly cost of $1,040 — over $400 less than the state average. 

Most of the other top companies in Alaska rate highly with J.D. Power for customer and claims satisfaction. USAA’s score of 882 out of 1,000 is particularly impressive. 

Policygenius analyzed thousands of quotes from the 5 largest Alaska insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Alaska residents to find the best homeowners insurance in Alaska.

Company

Average yearly cost

J.D. Power Rating

State Farm

$1,565

835

USAA

$1,720

882

Allstate

$1,682

829

Country Financial

$1,222

830

Western National

$1,040

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State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

One reason for State Farm’s high customer satisfaction ratings with J.D. Power is its plethora of online resources, which are a useful asset to new homebuyers with minimal understanding of how home insurance works. Additionally, State Farm gives customers the convenience of filing claims online, through its mobile app, over the phone, or in person. Customers can also upload photos directly from the mobile app, adding an extra level of efficiency to the process.

How to get a quote

Online through State Farm

USAA

USAA logo

USAA's robust coverages and high marks for customer service and claims satisfaction make it a solid home insurance option for military members and their families.

Pros

  • Score discounts for zero claims, being a loyal USAA member, opting into e-billing, and more

  • Base policy includes coverages that cost extra with most other companies

  • Offers earthquake coverage — which is hard to come by

  • Get discounted home security systems and a discount on premiums through its partnership with ADT

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended or guaranteed replacement cost dwelling coverage

Why USAA tops our best list

As part of USAA’s superior service, members can purchase an ADT home monitoring system at a reduced price and receive an additional discount on insurance policies in the process. By making your house more secure, you are less likely to file a claim, which saves money for everyone. 

How to get a quote

Online through USAA

Allstate

Allstate logo

Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.

Pros

  • Several coverage add-ons, including ones for roof surfaces, water backup, green improvements, and mold protection

  • 8+ discounts, including autopay, bundling, zero claims, and new homebuyer

  • Get up to 25% off your premiums when you bundle home and auto insurance

  • Excellent customer service and claims satisfaction ratings

  • File and track claims online or through its mobile app

Cons

  • Rates are typically high compared to competitors

Why Allstate tops our best list

A strong earthquake can quickly take out phone and power lines and impact internet coverage. When you can’t get in touch with Allstate after a catastrophe, the company will bring in mobile units to file and process claims, making it as quick and easy as possible to get you back into your home.

How to get a quote

Online through Policygenius or Allstate 

Country Financial

Country Financial logo

While around for nearly 100 years, Country Financial continues to adapt. Our favorite perk? Its extended replacement cost coverage, which let's you rebuild your home fully even if construction costs go up — a must-have with rising inflation.

Pros

  • Customer service ratings among the best in the business

  • 10+ discounts for bundling, newer roofs, on-time payments, smart locks, and more

  • Offers earthquake insurance — hard to come by with many insurers

  • Excellent policy add-ons, including extended or guaranteed replacement cost dwelling coverage

  • File claims online or through its mobile app

Cons

  • Strict dog breed restrictions

Why Country Financial tops our best list

Country Financial offers optional earthquake coverage that you can add to your home insurance policy as an extra safeguard. With Alaska’s frequent earthquakes, this additional coverage could save you thousands of dollars in expensive repairs. 

How to get a quote

Online through Country Financial

Western National

Western National logo

With over 120 years in the insurance industry, Western National stands out thanks to its promise that you won't see increased premiums after you file a claim — rare for an insurance company.

Pros

  • Won't increase your policy premium as the result of a claim — a rarity among insurance companies

  • Base policy comes with $100,000 in water backup coverage and personal injury liability protection

  • Pay only one deductible if you bundle policies and both your home and car are damaged in the same disaster

  • Childcare coverage add-on pays to replace wages you miss out on when you need to leave work to care for a sick kiddo

  • Can report claims online — with 24/7 support

Cons

  • Only 3 available discounts

Why Western National tops our best list

We love that, unlike most companies, Western National guarantees it won’t penalize customers by raising rates after a claim. This is a huge benefit for customers, especially given the already high cost of home insurance. 

How to get a quote

Contact a Western National Agent

Cheapest homeowners insurance companies by city in Alaska

Looking at average home insurance costs for the 15 most popular insurers in Alaska, we found that the cheapest homeowners insurance companies in the state are Western National, Country Financial, and State Farm. 

The cheapest yearly costs in Alaska’s biggest cities are $1,015 in Juneau through USAA, $1,025 in Fairbanks through Western National, and $1,023 in Anchorage through State Farm . 

The cost of your insurance policy is based on several different factors. Not only does your home’s size, value, and age play a part in determining your rate, but also risk factors such as the crime rate in your city and the propensity for severe weather. 

City

Company

Average yearly cost

Adak

Western National

$1,041

Akiachak

Western National

$1,041

Akiak

Western National

$1,041

Akutan

Western National

$1,041

Alakanuk

Western National

$1,041

Aleknagik

Western National

$1,041

Allakaket

Western National

$1,041

Ambler

Western National

$1,041

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Shopping for homeowners insurance in Alaska

There are several factors to keep in mind when shopping for homeowners insurance. Not only is it smart to have an idea of how much coverage you need, but in Alaska, you also need to consider whether you should buy additional coverage for floods and earthquakes. If you are unsure about anything from coverage limits to flood insurance, a Policygenius agent can help answer questions. 

In this section, we break down the average annual home insurance rates in Alaska for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Alaska.

Alaska home insurance costs by coverage amounts

Dwelling coverage is the part of your home insurance that pays for the cost to repair or rebuild your home after a covered event. The amount of coverage on your policy should be based on your home’s replacement cost, which is the price to rebuild your house from the ground up including material and labor.  

It’s important to know how much dwelling coverage you need since the cost of your policy will go up as you add more coverage to your policy. In Alaska, the average cost of a home insurance policy with $100,000 in dwelling coverage is $761, while a policy with $200,000 goes up to $1,090, a difference of $329.

Dwelling coverage amount

Average yearly cost

$100,000

$761

$200,000

$1,090

$300,000

$1,446

$400,000

$1,801

$500,000

$2,183

Liability coverage protects you from having to pay the bills if you are legally responsible for someone else’s injury or property. Since medical and legal bills can be financially draining, your liability coverage limit should be high enough to cover the total value of your assets, like your home and any vehicles you own, as well as your savings and investments. 

Liability coverage amount

Average yearly cost

$100,000

$1,355

$200,000

$1,438

$300,000

$1,446

$500,000

$1,458

Alaska home insurance costs by deductible amount

Your homeowners insurance deductible is the amount you have to pay towards every claim you file. Opting for a higher deductible plan will likely lower your home insurance premiums substantially, but it also means you’ll have to pay more out of pocket on each covered claim. 

As seen in the table below, Alaska residents can save around $192 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$1,545

$1,000

$1,446

$2,000

$1,353

Home insurance discounts in Alaska

Many insurance companies offer discounts for installing home safety devices. You can save money just for having a smoke detector, security alarm, or even a deadbolt lock. When your house is more secure, you are keeping yourself safe while decreasing the chance you will need to file an insurance claim.

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Alaska with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$1,446

Smoke alarm

$1,446

Burglar alarm

$1,405

Home insurance companies in Alaska for dog owners

Insurance companies have found certain dog breeds are more likely to attack strangers and, because of this liability concern, insurers will generally charge you higher home insurance rates if you own one of these breeds. 

With an average rate of $1,040 per year, Western National has the cheapest home insurance rates in Alaska  for a home with a dangerous dog breed, while USAA’s average yearly premium of $1,720 is the highest. 

Company

Average yearly cost

Western National

$1,040

Country Financial

$1,222

State Farm

$1,565

Allstate

$1,682

USAA

$1,720

Home insurance companies in Alaska for poor credit

Insurance companies will often look into your credit score when setting your home insurance rates. The school of thought is that customers with poor credit are less financially equipped to cover the cost of small losses or damages out of pocket, and more likely to file claims instead. 

If you have a low credit score, be sure to shop around, as not all companies weigh this factor as heavily as others. 

With an average rate of $1,040 per year, Western National has the cheapest home insurance rates in Alaska  for a homeowner with poor credit, while State Farm’s average yearly premium of $2,660 is the highest. 

Company

Average yearly cost

Western National

$1,040

Country Financial

$1,222

USAA

$2,086

Allstate

$2,129

State Farm

$2,660

Home insurance companies in Alaska for pool owners

Pool owners may see higher home insurance rates due to the increased likelihood of injuries and liability claims. 

Not all insurance companies weigh the risk of having a pool on your property as heavily as others, however, so be sure to compare quotes from multiple companies to find the best rate. 

With an average rate of $1,040 per year, Western National has the cheapest home insurance rates for Alaska  homes that have a swimming pool, while USAA’s average yearly premium of $1,720 is the most expensive.

Company

Average yearly cost

Western National

$1,040

Country Financial

$1,222

State Farm

$1,565

Allstate

$1,682

USAA

$1,720

How to buy homeowners insurance in Alaska

The potential risk of an earthquake or flood in Alaska adds to every homeowner’s coverage needs. Homeowners insurance doesn’t cover damage caused by earthquakes or flooding, so not having additional coverage could leave you stuck paying for extensive repairs out of pocket. 

Here are steps that will get you started on finding the right home insurance for your home:

  1. Reach out to a licensed Policygenius agent. Our agents are home insurance experts and are available to answer all of your questions.

  2. Consider purchasing flood and/or earthquake insurance. Most standard policies don’t cover two of the most potentially damaging hazards in Alaska. Consider either adding these options to your policy if possible, or purchasing separate flood or earthquake insurance to make sure you’re covered. 

  3. Figure out how much you can afford to pay for your deductible. While a higher deductible will lower your overall home insurance rate, you could end up paying far more if you have to file multiple claims. Weigh your risk factors to determine which option is likely to cost less money in the long run. 

  4. Compare quotes from a Policygenius agent. A Policygenius agent can go over quotes from multiple companies with you to determine which policy is the best and most affordable. 

  5. Choose your policy, sign, and pay your first premium. Once you’ve decided on the right home insurance policy, all that’s left to do is sign and pay your first premium. A Policygenius agent can take care of the rest.

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Frequently asked questions

What happens if you overinsure your house?

Having more homeowners insurance that you need will likely result in you overpaying for coverage. Overinsuring your house could lead to throwing money away on additional coverage that you don’t need.

What is a home insurance premium?

Your premium is the amount you pay to your insurance provider to keep your policy active. Along with your premium payment, you also need to pay an out-of-pocket deductible before your insurer will reimburse you for a claim.

Is homeowners insurance required in Alaska?

While homeowners insurance is not legally required in Alaska, it is often a condition of obtaining a loan from a mortgage lender.

What are the six categories typically covered by homeowners insurance?

Most standard policies include dwelling coverage, liability coverage, other structures such as fences and sheds, medical payments, personal property coverage, and additional living expenses.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.