Popular Questions about Homeowners Insurance in Alaska

On average, American homeowners pay $1,211 a year for their home insurance coverage. However, in Alaska, the average annual premium is lower at just $959 a year. Shopping around for the best price has the potential to save you lots of money.

Even though the cost of home insurance may seem like a lot of money, having this coverage is important because hazards like severe weather, accidental fires, and property crimes can result in expensive losses for Alaska homeowners who are not insured.

Your home insurance policy is designed to cover against many of the hazards you are likely to face as a property owner in Alaska. Whether you have been impacted by a severe storm, a house fire, or a rash of burglaries, you can gain peace of mind from knowing that a suitable Alaska homeowners insurance policy can cover the associated costs.

Let’s look at some of the ways that your homeowners insurance policy can protect your finances:

  • By Paying to Repair or Replace Your Home and Your Belongings
    • Example: A windstorm causes a tree to topple onto your house, and your roof and siding are significantly damaged.
  • By Paying for Someone Else's Injuries or Property Damage When It's Your Fault
    • ExampleYour dog manages to dig his way under your fence and while out of your yard, bites a passing pedestrian.
  • By Paying for Your Temporary Living Expenses When Your Home Is Damaged
    • Example: An out-of-control kitchen fire compromises the structural integrity of your house. You must stay in a hotel while repairs are made and the house is brought back up to code.

We can’t be 100% certain, but last year, insurance companies paid out more than $64 million in home insurance claims in the state of Alaska alone.

That's a lot of unfortunate events happening in the Last Frontier.

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.

There is no such thing as a homeowners insurance company that is “best” for everyone. The policy that offers the most value to you and your family is not necessarily the ideal choice for your next-door neighbor or your best friend.

That is why independent agents compare policies and rates from multiple companies. In doing so, they are able to find the coverage that is best able to meet your coverage needs and budget.

Yes! There are currently 33 independent insurance agents in Alaska who are ready to help.

Independent insurance agents aren’t tied to a single insurance provider. This means that they can work with several different insurance companies to find you the best rate for coverage. Working with these agents enables you to buy a policy that meets all your coverage needs at a highly competitive price.

How does home insurance work?

Find the Best Insurance in Your City

How does your city measure up to the national average?

National average burglary rate 4.69 per 1,000 homes

National average home value $188,900

National average home insurance cost $1,173 year

CityAvg. home valueBurglaries / 1,000 homesAnnual insurance cost
Meadow Lakes$255,9605.46$826
  1. $83
  2. Anchorage, AK Monthly average home insurance cost
  3. The average monthly cost of homeowners insurance in Anchorage is $83.
  4. Your price for homeowners insurance is likely to be different from your neighbor’s because rates are based on several factors such as the size and value of your house, the age of your roof, your claims history, and the amount of your deductible. Your quoted rate for home insurance may therefore be higher or lower than the city’s average.
  5. One of the most devastating events a homeowner can deal with is a residential fire. In addition to damaging the structure of your house, a fire can lead to the total loss of your personal belongings, including furniture, clothing, electronics, and precious family heirlooms. While homeowners insurance cannot bring back your irreplaceable keepsakes, it can give you peace of mind from knowing that the disaster will not cause you a large financial loss.
  6. Because fire is so destructive, it is important that you ensure that your dwelling coverage is sufficient to enable you to rebuild your home and that your contents coverage is high enough to cover the cost of replacing all of your lost or damaged property.

  1. $85
  2. Juneau, AK Monthly average home insurance cost
  3. The average monthly cost of home insurance in Juneau is $85.
  4. Of course, the price you may be quoted for coverage may differ from this amount depending on a number of factors. Your actual rate will be calculated according to considerations like the age, size and value of your house, the crime rate and weather risks in your ZIP code, your claims history, and sometimes even your credit score. 
  5. One of the most common hazards faced by homeowners in Juneau is property crime. This small city, in which residents report more than 300 burglaries in a typical year, has a burglary rate that is nearly double the state average. Fortunately, your home insurance covers against property loss and damage to your house if you are the victim of a property crime like burglary or vandalism.
  6. If your house is broken into, first make sure you and your family are safe and then call the authorities. You will need a copy of the police report when you file a claim. If you need assistance, your local independent agent can provide you with guidance throughout the entire claims process. 

  1. $74
  2. Fairbanks, AK Monthly average home insurance cost
  3. The average monthly cost of home insurance in Fairbanks is $74.
  4. Keep in mind, however, that homeowners insurance rates in can vary from one property owner to the next. Your actual rate will be based on factors like the size, value, and location of your home; the materials used in your house’s construction; the crime rate in your ZIP code; the size of your deductible; and, in some cases, even your credit score.
  5. Residents in the Fairbanks area are familiar with the devastating effects a flood can have on property. While nothing has compared to the Great Flood of 1967 in recent years, property owners near the Tanana and Chena rivers are a risk when water levels rise. According to FEMA, as little as one inch of rainwater in your home can lead to $25,000 in property damage, but homeowners insurance specifically excludes flood damage from its coverage.
  6. Because flooding is a concern for many residents of this city, it is a good idea to supplement your home insurance with an affordable flood insurance policy through the National Flood Insurance Program (NFIP). An independent insurance agent can show you how.

  1. $70
  2. Badger, AK Monthly average home insurance cost
  3. The average monthly cost of home insurance in Badger is $70.
  4. Because your homeowners insurance is completely customized to specific details about you and your home, your monthly premium may be higher or lower than this city’s average. Insurance companies consider your home’s size, value, location, and other factors when they calculate your monthly rate. 
  5. Residents of Badger are most at risk for damage caused by winter storms, floods, and wildfires. In 2013, the Stuart Creek Fire burned more than 87,000 acres and caused more than $21 million in damage. This put residents of Badger at risk of losing their homes to the out-of-control blaze. While wildfires can be particularly destructive, it may bring you some comfort to know that your homeowners insurance can cover your losses if a fire tears through your neighborhood.
  6. Talk to a local independent agent to learn more about what your policy will and will not cover and for help making sure that your dwelling and contents insurance coverage levels are high enough to enable you to completely rebuild and start over if necessary.

  1. $78
  2. Knik-Fairview, AK Monthly average home insurance cost
  3. The average monthly cost of homeowners insurance in Knik-Fairview is $78.
  4. Of course, some homes cost more to insure than others so rates are determined on a case-by-case basis. This average rate, therefore, can only give you a general idea of what you might be expected to pay. Your costs will be influenced by the size and value of your house, your claims history, your deductible amount, and other factors.
  5. The risk of an earthquake in Knik-Fairview is 829% greater than the national average. While quakes do not happen frequently, when they do, they have the potential to damage the structure of your home as well as your personal property. One of the worst was a 9.2 magnitude quake that occurred just 74 miles from Knik-Fairview in 1964. This quake caused more than $1 billion in damage. However, earthquakes are not covered by home insurance. For that, you will need an earthquake insurance policy. A local independent insurance agent can help.
  6. Local independent insurance agents are well aware of the earthquake risk in this area and can help you find an affordable earthquake insurance policy to supplement your homeowners insurance coverage.