Montana Homeowners Insurance

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Homeowners Insurance in Montana: Complete Consumer Guide

Montana is taken from the Spanish word montaña, which means mountain. It is the fourth largest state, but 30% of it is public land. You’ll find seven state forests and 53 state parks here. Montana even boasts an entrance to Yellowstone National Park, in Gardiner. There’s a famous ghost town here called Bannack, which was founded back in 1862 during a second gold rush. The largest snowflake fell during a storm in 1887 in Montana (15 inches wide!). And the only blue sapphire, the Yogo Sapphire, is found only in this state. The first woman ever elected to Congress, Jeannette Rankin, was from Montana and the state motto is “gold and silver.”

Types of Homeowners Insurance policies in Montana

HO-1 Basic Form. This is the most basic policy for a single-family home. It only covers 10 perils and is so limited that most insurers do not offer it.

HO-2 Broad Form. This is a more common policy type and covers a broader range of perils than HO-1.

HO-3 Special Form. This is the most common type of homeowners insurance policy. It offers “open peril” coverage for the structure of the home unless the peril is specifically excluded in the policy. It does not, however, include earthquake and flood insurance, both of which are separate stand-alone policies. Generally, it covers up to 16 perils, including fire and smoke; lightning strikes; windstorms and hail; explosions; vandalism and malicious mischief; damage from an aircraft, car or vehicle; theft; falling objects; weight of ice; snow or sleet and water damage not caused by a flood.

HO-8. This type of policy is for older homes. It covers up to 10 perils and reimbursement for covered damage is paid at actual cash value not replacement cost. Basically, depreciation will be factored into the payment. This type of policy is great for historic homes and registered landmarks.

HO-6 Condo Insurance Form. This type of policy is written on an HO-6 form and offers “walls-in” coverage against 16 perils. It also covers personal belongings.

What factors affect rates on homeowners insurance in Montana?

Many factors affect homeowners insurance rates in Montana. The size and value of your home are important, because home insurance is based on what it would cost to rebuild your home. The construction type and materials are important

Top 5 Disasters in the State of Montana

Montana federally declared Fire disasters the most with 59 counts since 1953, followed by Flood, Severe Storms, Biological, and Drought disasters. Fire or Lightning disasters is one of 16 perils covered on standard homeowners policies. Here's top 5 tragedy in the State of Montana federally declared disasters:

Rank Declaration Title Disaster Number
1 Fire 59
2 Flood 13
3 Severe Storms 12
4 Biological 3
5 Drought 1

Source: Federal Emergency Management Agency (FEMA)


How much is homeowners insurance in Montana?

The average cost of a homeowners insurance premium in the state of Montana is $948.

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

Crime Rate: Is Montana a safe state?

2019 Crime in Montana Crime Number Crime Rate*
Property Crime 23,440 2,193.2
Burglary 2,887 270.1
Larceny-Theft 18,176 1,700.6

*Rate per 100,000 inhabitants

Safest Cities in Montana by Property Crime*

  • Kalispell, MT has a population of 24,473 with a Property Crime rate of 33.5 per 1k. The city average home value is approximately $356,396.
  • Missoula, MT has a population of 75,422 with a Property Crime rate of 40.9 per 1k. The average home value there is about $367,298.
  • Helena, MT came in third as the safest city in the state of Montana and has a population of 32,806 with a Property Crime rate of 42.7 per 1k. Its home value averaged at about $300,433.
  • Great Falls, MT has a population of 58,637 with a Property Crime rate of 58.1 per 1k. Its average home value is $205,720.

*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 Montana

Top homeowners insurance companies in Montana

Farmers is the cheapest home insurer in Montana,with average premiums under $900 a year. Farmers also has a high share of the insurance market in Montana and offers discount options that can greatly reduce monthly payments. Qualifying home security and fire prevention will save you lots of money with Farmers.

State Farm is a very popular home insurance provider, even when their prices are not the cheapest. People appreciate the level of customer care and overall claims resolution satisfaction. There are currently State Farm agencies in most cities and towns in Montana.

USAA is always a good choice for military families and veterans, who save over $250, on average. This insurer also covers perils that standard home insurance does not cover, such as coverage for military uniforms and coverage in war zones. USAA gets high ratings from J.D. Power and offers superior customer service.

Montana Home Insurance FAQs

Does homeowners insurance cover settling?

Usually, natural settling is considered the responsibility of the owner to maintain. Negligence is not covered by a homeowners insurance policy. In most policies, the causes of foundation damage are excluded. Make sure to check your declarations page and speak with your agent.

What is home contents coverage?

Contents coverage is coverage for your belongings. Take into consideration that it also includes jewelry and furs and expensive equipment in the home so your limits may not cover everything but you can buy a rider for especially pricey items.

What is guaranteed replacement cost vs extended replacement cost?

Guaranteed replacement cost is what it would cost to rebuild your home and replace your belongings. Extended replacement cost covers rebuilding costs up to a predetermined percentage so that you get even more coverage than guaranteed replacement cost.

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