Alaska Homeowners Insurance

Homeowners Insurance in Alaska: Complete Consumer Guide

Thinking about making the move up to Alaska? Here are some interesting facts about your new home state. Of the 20 highest mountain peaks in the United States, 17 are in Alaska. There are more than 3,000 rivers in Alaska and over three million lakes. Alaska’s Yukon River, almost 2,000 miles long, is the third longest river in the U.S. Alaska has 100,000 glaciers and five percent of the state, 29,000 square miles, is covered by glaciers. Alaska’s state nickname is The Last Frontier. The state capital of Alaska is Juneau. The state flower of Alaska is the alpine forget-me-not. The state bird of Alaska is the willow ptarmigan. And the state tree of Alaska is the sitka spruce. Alaska became the 49th U.S. state in 1960.

Types of Homeowners Insurance policies in Alaska

What type of home insurance policy do you need for your home. Not sure? Here is a look at the different types of home insurance policies.

HO-1 Called the “basic form,” this policy covers the 10 most common perils. But you won’t find this type of policy everywhere. Some insurance companies do not offer HO-1 forms.

HO-2 Known as the “broad form,” this policy provides more limited coverage. But it still provides more coverage than the HO-1 basic form.

HO-3 This form is the most widely purchased type of home insurance policy. It provides coverage for named perils and personal property. With a HO-3 form your insurance company will pay to repair or replace belongings damaged by 16 covered perils. Perils covered by the HO-3 form include theft, falling objects, the weight of snow, sleet and ice on the home, water damage, explosions, vandalism, hail, windstorm, lightning, smoke and fire.

HO-6 This policy form is for condominium units. This type of coverage is typically “walls-in” coverage and may protect a condo unit’s walls, ceilings and floors from 16 covered perils. This form also provides coverage for the condo owner’s personal belongings.

HO-8 This type of home insurance policy form is for older houses and it covers 10 perils. The HO-8 form is paid on an actual cash value basis, which is the cost of the items minus depreciation.

What factors affect rates on homeowners insurance in Alaska?

There are a number of factors that come into play when you are rated for a homeowners insurance policy. For example, the construction materials of your home are a big factor. So are other things like how much it will cost to rebuild your home and replace all your personal belongings. Whether you have a trampoline or a swimming pool on your property affects your homeowners insurance rate as well. Your credit also affects your homeowners insurance rate. Homeowners with good or excellent credit will pay lower premiums than homeowners with bad credit. Are you a dog owner? You’re liable for dog bites and injuries caused by your dog. Because of this, being a dog owner affects your home insurance rate.

Compare Auto Insurance Rates in Alaska

Top 5 Disasters in the State of Alaska

Alaska federally declared Fire as the most common disaster with 24 counts since 1953, followed by Severe Storms, Flood, Earthquake and Other types of disasters. Fire or Lightning is one of 16 perils covered on standard homeowners policies. Here are the top 5 federally declared disasters in the state of Alaska:

Rank	Declaration Title	Disaster Number
1	Fire	24
2	Severe Storms	18
3	Flood	14
4	earthquake	4
5	Other	4

Source: Federal Emergency Management Agency (FEMA)

 

How much is homeowners insurance in Alaska?

The average cost of homeowners insurance in Alaska is $1,002 per year.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Alaska a safe state?

2019 Crime in Alaska	Crime Number	Crime Rate*
Property Crime	21,294	2,910.8
Burglary	3,563	487.1
Larceny-Theft	15,114	2,066.0

*Rate per 100,000 inhabitants

Safest Cities in Alaska by Property Crime*

• Juneau, AK has a population of 31,810 with a Property Crime rate of 40.6 per 1k. The city average home value is approximately $402,733.
• Anchorage, AK has a population of 287,731 with a Property Crime rate of 42.6 per 1k. The average home value there is about $325,472.
• Fairbanks, AK came in third as the safest city in the state of Alaska and has a population of 31,493 with a Property Crime rate of 43 per 1k. Its home value averaged at about $234,441.
• Wasilla, AK has a population of 10,915 with a Property Crime rate of 53.1 per 1k. Its average home value is $262,269.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Alaska

Top homeowners insurance companies in Alaska

State Farm has a strong web presence and quick claims payments and offers a wide range of coverages for home insurance. Add-on policies include identity theft restoration, home business coverage and flood insurance. Discounts are available for bundling your home insurance policy with an auto insurance policy from State Farm.

Allstate offers a wide range of discounts on its homeowners insurance policies. Add-on coverages are available for business properties, sports equipment, musical instruments and yards and gardens. Allstate’s interactive website has videos and calculators and articles to help customers choose and manage their home insurance policies.

Country Financial has three tiers of coverage for homeowners to choose from and each policy includes liability coverage. Add-on coverages are available for valuables, earthquake damages and flood protection. Country Financial offers discounts on alarm systems, newer homes and homes without fireplaces or wood burning stoves.

Alaska Home Insurance FAQs

What is the best auto & home insurance in Alaska?

The best homeowners insurance companies in Alaska are State Farm, Allstate and Country Financial. Geico, State Farm and Progressive are tops in auto insurance.

Can you sell an uninsured house?

Yes, you can sell an uninsured house. So if your home is uninsured, don’t hesitate to put it up for sale. However, it’s not a good idea to have potential buyers see the home when it’s uninsured and you never know if a disaster may strike. You may need to repair or rebuild the home while it’s up for sale so make sure you’re insured.

Will homeowners insurance pay for tree removal?

Homeowners insurance usually covers tree removal if the tree falls on a covered structure such as your home or your fence. The tree removal also may be covered if it was caused by a covered peril such as a windstorm or the weight of snow and ice.