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.
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.
Methodology & why you can trust our rates
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.
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 | -- |
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
Read our full State Farm home insurance review
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
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
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
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
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 |
|---|---|---|
Anchorage | State Farm | $1,023 |
Bethel | Western National | $1,041 |
Cordova | Western National | $1,041 |
Fairbanks | Western National | $1,025 |
Homer | Western National | $1,041 |
Juneau | USAA | $1,015 |
Kenai | Western National | $1,041 |
Ketchikan | Country Financial | $971 |
Kodiak | Western National | $1,041 |
Kotzebue | Western National | $1,041 |
Nome | Western National | $1,041 |
Palmer | Western National | $1,041 |
Seward | Western National | $1,041 |
Sitka | State Farm | $869 |
Soldotna | Western National | $1,041 |
Unalaska | Western National | $1,041 |
Valdez | Western National | $1,041 |
Wasilla | Western National | $1,041 |
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:
Reach out to a licensed Policygenius agent. Our agents are home insurance experts and are available to answer all of your questions.
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.
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.
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.
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.
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.
