Insurance companies calculate home insurance costs according to how valuable your property is and how likely it is that something bad will happen to it.
The higher the probability that a damaging event will affect your house or personal property, the more expensive your home insurance policy will be. These potential damaging events are called "risks” or “exposures.” Let’s take a look at how risky Alaska is compared to the rest of the US.
Crime and Insurance Cost:
The bad news is that the overall burglary rate in Alaska is significantly higher than the national average. This can have a negative influence on your home insurance rates, particularly if your house is located in a high-crime ZIP code.
- Average number of burglaries per 1,000 homes in the US: 3.76
- Average number of burglaries per 1,000 homes in AK: 5.40
There are ways to keep your costs manageable. Many insurance companies offer policy discounts if you have a burglar alarm, deadbolt locks, or other security features installed in your home.
Weather and Insurance Cost:
Severe weather events, like blizzards and windstorms, can wreak havoc on residential properties in this state. Be sure that your home insurance provides all the coverage you need before disaster strikes.
- Number of federally declared disasters in AK since 1953: 71
- Most common causes of disasters in the state: Wildfires, severe storms, and floods
- Amount paid in home insurance claims in AK in 2019: $64,597,000
Keep in mind that while most disasters are covered by homeowners insurance, flood damage is not. A local independent agent can help you supplement your homeowners insurance coverage with an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
Home Values and Insurance Cost:
The value of your home and property play a large role in the calculation of your rates. In Alaska, the average home value is higher than the national average.
- Average home value in the US: $188,900
- Average home value in AK: $273,100
The size of your home can affect your home insurance rates, since larger homes tend to have more personal property inside them. The estimated cost to rebuild your home will also play a large role in how much your home insurance costs.