The Best Cheap Montana Homeowners Insurance

A homeowners insurance policy helps provide a financial safety net for your family for damage or loss from natural disasters, theft, and other risks to your home. Our experts have researched the best homeowners insurance companies in Montana. Homeowners can follow these tips to find the best cheap homeowners insurance in the state.

Cheapest overall for Montana: Chubb / Pacific Indemnity Company
Cheapest for new home construction: Unitrin Safeguard Insurance Company
Cheapest for older homes: Chubb / Pacific Indemnity Company
Cheapest when you've made a claim: Chubb / Pacific Indemnity Company

Cheapest overall for Montana

The cheapest Montana home insurance policy is sold by Chubb, the world’s largest publicly traded P&C insurance company and a leading commercial lines insurer in the U.S. Chubb operates in 54 countries and territories. Pacific Indemnity Company is a subsidiary.

• Chubb / Pacific Indemnity Company comes in at an average annual rate of $1,069.
• Unigard Insurance Company offers an average annual rate of $1,294.
• American Modern Property & Casualty Insurance Company averages $1,347 per year.

Cheapest for new home construction

Homeowners insurance for new homes is typically the least expensive, since new houses are less likely to have the kind of issues that older buildings often do. New homes are built with newer materials and must comply with stricter safety regulations. As a result, insurance companies don’t take on as much risk to insure new construction. The cheapest Montana homeowners insurance for new homes comes from these companies:

• Unitrin Safeguard Insurance Company offers an average annual rate of $527.
• Nationwide averages $577 per year.
• Unigard Insurance Company comes in at $577 per year.

Cheapest for older homes

Homeowners insurance for older homes is more expensive, especially houses built 50 or more years ago due to wear and tear. Older buildings are more likely to have plumbing and electrical issues, as well as deteriorating roofs. Interestingly, homeowners insurance for older homes in Montana are relatively inexpensive compared to the cost of insuring the average home in the state. These are the top three companies for inexpensive insurance for older Montana homes:

• Chubb / Pacific Indemnity Company comes in at an average annual rate of $1,017.
• Unigard Insurance Company averages at $1,220 per year.
• Unitrin Safeguard Insurance Company offers an average rate of $1,302 per year.

Cheapest when you've made a claim

Homeowners insurance pays for losses and damage to property if something unexpected like a fire or burglary occurs. When the insured party makes a claim, however, their insurance rates may rise for a period of time. The cheapest coverage for people who have previously made a claim is available through these companies:

• Chubb / Pacific Indemnity Company comes in at an average annual rate of $1,017.
• Unigard Insurance Company offers an average of $1,318 per year.
• American Modern Property & Casualty Insurance Company averages $1,385 per year.

Average home insurance cost in Montana compared to the national average

The cost of the average Montana home insurance policy is $2,547, which is almost 50% higher than the national average of $1,725. Due to the extreme weather in Montana, insurers put the state in a higher-risk insurance category.

Montana homeowners insurance overview

There are many international, national, and regional companies that offer Montana home insurance. The key is finding the best value based on the needs of a homeowner. Here are some other factors to consider when choosing the best company.

Different types of homeowners coverage

The best home insurance companies offer a wide range of coverage types. There are six types of policies designed to cover traditional site-built homes, from basic policies to those that offer more features.

The types of homeowners coverage are Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability, and Medical Payments. Homeowners should look for coverage based on their needs, what they want covered, and their budgets.

Level of coverage

Standard homeowners policies provide basic coverage for damage from disasters such as fire, lightning, or hail. Those who live in areas prone to floods or at risk of earthquakes will need additional coverage for those natural disasters.

Homeowners should consider a policy with high enough limits to cover the cost of rebuilding a home. The saying “you get what you pay for” often applies to homeowners insurance. Creating a home inventory of what would need replacement in the event of a disaster can help determine if the policy provides enough coverage.

Amount of deductible

A deductible is an amount the homeowner must pay out-of-pocket towards a claim before the insurance company pays the rest. The typical deductible is $1,000. The deductible amount a homeowner chooses impacts the premium.

Raising the deductible can lower the premium amount. A homeowner’s premium would be higher for a $500 deductible and lower for a $2,000 deductible.

Potential discounts

Many insurance companies offer home insurance discounts. The exact discounts vary, so check your potential insurer's list. One common discount is for bundling auto, home, and other types of insurance. Before choosing a policy, take into account any discounts you qualify for. Homeowners may get greater value at a lower cost by taking advantage of all the discounts available.

What are the most common homeowners insurance claims in Montana?

Every region is known for a different set of natural disasters. The most common natural disasters in Montana are wildfires, earthquakes, tornadoes, winter storms, and floods.

Wind and hail

Due to Montana’s location, severe winter storms are common. The "wind and hail" category covers hurricanes, tornadoes, and winds. Claims under this category make up 34.3% of all claims in the U.S., the largest percentage in the country.

Water damage and freezing

The second highest category is property damage from plumbing issues and storms. Water damage coverage also typically includes water damage after a fire, roof leaks, or ice dams. Insurance companies generally do not cover water damage due to lack of maintenance, negligence, or intentional damage. Frozen pipes that burst and water damage from storms make up 29.4% of all claims.

Fire and lightning damage

The most expensive claims are fire and lightning claims, with an average cost of $78,838 per claim. They make up 25.1% of all claims. Typical policies cover fire damage to the home itself, detached structures (like sheds or detached garages), and personal property in the home. Some policies cover only a percentage of personal property losses, so it is important to have an accurate inventory of all belongings.

Homeowners insurance coverage options and discounts in Montana

Homeowners should shop around and compare prices from other companies every couple of years to find the best homeowners insurance in Montana. Policy-holders don't want to be under-insured in the event of a disaster, but also don't want to pay for more coverage than needed. Here are coverage options to help you compare policies, plus some common discounts to look for.

Coverage options

Homeowners can pick and choose the different levels and types of coverage that best meet their needs. Here are the coverage options:

HO-1: This is known as “basic form,” and is the most basic type of policy. HO-1 covers home and personal belongings at actual cash value against typical perils. HO-1 coverage is limited, so many insurance companies no longer offer this type of policy.

HO-2: This is known as “broad form,” and while this policy expands on HO-1 by offering coverage against more than basic perils, it is still limited. It includes protection against things like freezing, electrical surges, volcanic eruption, and damage due to the weight of ice, snow, or sleet.

HO-3: This is known as a “special form,” and is one of the most commonly purchased types of coverage. It covers a homeowner against a wide range of risks unless they're explicitly excluded in the policy. HO-3 policies pay actual cash value to replace damaged or lost property. They take depreciation into account, and pay the current market value.

HO-4: This is a standard renters insurance policy that does not apply to homeowners.

HO-5: This is known as a “comprehensive form,” and unlike an HO-3 policy, it covers actual replacement value and automatically includes coverages beyond those of HO-3. It is much broader, and as the name suggests, more comprehensive than HO-3.

HO-6: This is a condo insurance policy known as “walls-in” coverage. It also covers the condo owner’s personal belongings.

HO-7: This is a typical mobile home insurance policy. It covers a mobile home and personal property.

HO-8: This type of coverage is for older homes, historic homes, or homes that are architecturally important.

Discount options

Discounts can help lower the cost of the premiums. Each insurance company offers its own discounts, showing why it's important to shop around for the cheapest option. These discounts can help homeowners find the best homeowners insurance in Montana. Here are the most common discounts offered:

• New home construction
• Home and auto bundle
• Advance pay
• Home upgrades
• Home security system
• Company loyalty
• Professional affiliation
• Non-smoker
• Homeowners association (HOA) membership

5 cheapest cities in Montana for homeowners insurance

There are many factors that affect the cost of a home insurance policy. Where you live is a large factor in determining your policy rate. Others factors include:

• Amount of coverage
• A home’s age and condition
• Home security and safety features
• Homeowner's credit history
• Additional coverage
• Deductible amount
• Choice of insurance provider

Here are the five cheapest cities for Montana home insurance:

5 most expensive cities in Montana for homeowners insurance

Here are the five cities with the most expensive Montana homeowners insurance:

The best homeowners insurance in Montana provides comprehensive coverage at the best value. It's important to look for cheap Montana home insurance that not only saves a homeowner money, but adds necessary protections. The right policy can give homeowners peace of mind, once they know they have enough coverage to protect one of their most valuable assets.