The Best Cheap Alaska Homeowners Insurance for 2024

Shopping for homeowners insurance but not sure where to start? Don't worry; we've got you covered. We've combed through the best homeowners insurance in Alaska to find which companies offer the lowest rates. Here, we'll share what we found as well as clue you in on factors to look for when choosing an Alaska home insurance policy.

• Cheapest overall for Alaska: Western National
• Cheapest for new home construction: Western National
• Cheapest for older homes: Western National
• Cheapest for homeowners who have filed a claim: Western National

Cheapest overall for Alaska

These three companies not only offer cheap homeowners insurance in Alaska, but they also offer a great assortment of coverage options:

• Western National, with an average annual rate of $918
• Country Financial, coming in with an average rate of $946
• State Farm, with an average annual rate of $1,370

Cheapest for new home construction

If the house you're buying is brand new, you may be surprised by just how low your homeowners insurance rates are. Insurance companies don't end up paying out many claims on new properties, primarily because everything in the house is new and less likely to malfunction. Companies pass some of their savings on to policyholders through lower insurance premiums. Here are the three cheapest Alaska home insurance providers for newly built homes:

• Western National, offering an average annual rate of $497
• Allstate, with an average annual rate of $511
• Country Financial, with an average annual rate of $526

Cheapest for older homes

When it comes to character and history, there's nothing quite like an older Alaska home. However lovely the home may be, though, an older home is more likely to have issues, like broken pipes, leaky roofs, and wood rot. For that reason, insurers tend to charge more to insure an older home. These three companies still manage to insure old Alaska homes cheaply:

• Western National, with an average annual rate of $827
• Country Financial, offering an average annual rate of $874
• State Farm, with an average annual rate of $1,271

Cheapest when you've made a claim

If a home is damaged or destroyed, it's important to have the right coverage. Still, a homeowner can expect their premiums to go up for a while after making a claim. For an Alaska homeowner who has previously made a claim, these three insurers offer the most forgiving rates in the state:

• Western National, offering a yearly rate of $827
• Country Financial, coming in with an average annual rate of $946
• State Farm, offering an average annual rate of $1,450

Average home insurance cost in Alaska compared to the national average

The average cost of homeowners insurance in Alaska is $1,241, which is about 28% lower than the national average of $1,725.

Alaska homeowners insurance overview

The best homeowners insurance in Alaska can be summed up by two things: low premiums and comprehensive coverage.

Types of homeowners coverage

Homeowners coverage in Alaska is not meant to be a one-size-fits-all proposition. There are six types of policies specifically designed to cover traditional (non-mobile) homes. These policies range from basic to coverage with all the bells and whistles. The best homeowners insurance companies offer enough policy types so homeowners can choose the right level of protection.

Level of coverage

A homeowner should not be surprised if a bare-bones policy does not fully cover their losses after a peril damages their home. That's why it's essential to shop for a level of coverage that does not require the homeowner to pull a large sum of money from their own pocket.

Amount of deductible

A deductible is an amount a homeowner must pay toward a claim. Let's say there's a house fire and the total repair estimate is $60,000 with a $1,000 deductible on the policy. The homeowner pays the contractors $1,000, and the insurance company covers the remaining $59,000. It's a good idea for homeowners to consider deductible amounts when shopping for Alaska home insurance.

Potential discounts

One of the easiest ways to keep policy costs to a minimum is by taking advantage of discounts. A homeowner can't be sure which companies offer truly cheap homeowners insurance in Alaska until they learn how much a policy costs after discounts are factored in. Most insurance companies offer home insurance discounts, ranging from whether smoke detectors are in the house to whether a homeowner bundles home and auto insurance.

What are the most common homeowners insurance claims in Alaska?

To ensure proper coverage, it may help to know the most common Alaska home insurance claims. Here's what they are.

Water damage and freezing

Alaska gets more than its fair share of snow and rain each year. That helps explain the number of Alaska home insurance claims for things like damage due to ice dams, frozen pipes, and slip-and-fall accidents. There's also the risk of water damage caused by plumbing issues and malfunctioning appliances.

Earthquakes

About 11% of all earthquakes in the world take place in Alaska according to the Alaska Seismic Hazards Safety Commission. And an average of 1,000 earthquakes happen every month somewhere in the state, with one magnitude 8 or larger hitting every 13 years. While a standard homeowners insurance policy does not cover earthquakes, it's a good idea for homeowners to add earthquake insurance when they're buying their homeowner's policy.

Fire and lightning

Nationally, fire and lightning damage accounted for 25% of all homeowners insurance claims in 2019 according to the Insurance Information Institute. And Alaska was no exception. Fire is not the top reason for insurance claims in the state, but it is one of the most expensive claims a homeowners insurance company deals with.

Wind damage

Wind damage is another common Alaska home insurance claim. Between blowing objects, falling trees, and heavy winds, roofs and other exterior features of a home can take a beating that require repairs.

Homeowners insurance coverage options and discounts in Alaska

Here's a list of coverage and discount options available to those looking for the best homeowners insurance in Alaska.

Coverage options

As mentioned, homeowners (other than those with a mobile home) can choose from six categories of coverage. These categories are referred to as HO-1 through HO-8. Here's how the types of homeowners insurance break down:

• One type covers renters.
• Another covers mobile homes only.
• The other six range from basic coverage to more extensive protection.

A homeowner can pick up coverage for upgraded features like a custom theater room or upgraded lighting. A comprehensive insurance policy may also protect against loss for things like coins, artwork, or computer equipment.

Discount options

Landing inexpensive homeowners insurance in Alaska depends, in part, on claiming as many discounts as possible. Each insurer offers a different set of discount options. Here's a sampling of the most common:

• Roof upgrade
• Upfront payment of premium
• Home security system
• Smoke detectors
• Deadbolts
• Nonsmoking
• Company loyalty
• New home construction
• Policy bundling

5 cheapest cities in Alaska for homeowners insurance

Insurance companies take many factors into account as they determine premiums. They include some things outside the homeowner's control, such as:

• A city's crime rate
• The value of other homes in the area
• Cost to rebuild in a particular area
• How near (or far) a house is from a fire station

With that said, here are the five cheapest cities in Alaska for homeowners insurance:

5 most expensive cities in Alaska for homeowners insurance

Here are the five most expensive cities in Alaska for homeowners insurance:

The best homeowners insurance in Alaska provides the level of protection necessary to help a homeowner sleep easier at night at a rate that works with their budget. While homeowners insurance is often treated as an afterthought, it can be a life saver in the event peril strikes.