In Alaska, home insurance coverage is not controlled by state legislation. Additionally, the state experiences extreme weather conditions such as severe winters, thunderstorms, and hail, making home insurance rates extremely high and almost equal to the national average.
Besides extreme conditions, the state is sparsely populated; it houses about 316,952 home units, and most of these households are insured. As of 2011, the rates on home insurance coverage have increased considerably; between 2011 and 2015, the coverage rose by a staggering 6%.
These rates also vary depending on the geographical location of the property. For instance, southeastern Alaska experiences the highest rainfall in the state, so its coverage rates are higher coverage than in other parts of the state.
A recent survey by the Insurance Information Institute (III) indicated that home premiums varied from one state to another in 2019, with the average ranging between $500 and $2000. Alaska's average premium stood at $981 annually, just about $200 less than the current national average of $1,192. The study indicated a steady rise in Alaska's home insurance coverage rates over the last decade.
Among the 51 states, Alaska was ranked at 34th by III in home insurance premium rates. Based on 2016 data, an average Alaska homeowner had to pay up to $81 monthly for home coverage.
Even though there is no legislation on obligatory homeowner coverage insurance, many insurance companies provide this service to the residents of the state. Choosing the right provider and the right package can be daunting.
Remember, if you are planning to choose a home insurance provider company in Alaska, you should obtain different quotes from an array of businesses. Understand the scope of coverage and each company's settlement policies.