Home insurance in Alaska costs about $110 monthly or $1,318 annually on average. Homeowners in Alaska pay $110 less per month, or $1,317 less annually, than the national average, making it the 13th most affordable state for home insurance.
Average Home Insurance Cost in Alaska
Updated: May 30, 2025
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Rates updated:
Jun 11, 2025
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Key Takeaways
Home insurance costs in Alaska range from $1,464 per year to well over $7,812, depending on your financial history, home details, chosen coverage, and provider.
Alaska's home insurance premiums are the 13th most affordable in the country, at 50% below the national average.
To find the best home insurance in Alaska, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in Alaska?
| Alaska Average | $110 | $1,318 | -50% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250,000 dwelling, $125,000 personal property and $200,000 liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Alaska?
Home insurance is expensive in Alaska mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Alaska homeowners make less claims than the average. The Insurance Information Institute reports that in 2023, the state recorded the second-lowest total incurred insurance losses (claim value) in the country, at 1.02 billion dollars, which may lead insurance costs to be lower.
High Weather Risks
Due to Alaska's extreme weather conditions and remote geography, the likelihood of expensive claims presents unique challenges. In 2024, weather-related risks were primarily driven by severe winter storms, flooding from rapid snowmelt, and infrastructure damage from freeze-thaw cycles, with costs significantly amplified by the state's limited transportation networks and high construction material prices in remote areas.
Rising Material and Labor Costs
Construction costs accounted for a record 64% of new home prices in 2024, up from around 61% in 2022, according to the National Association of Home Builders' (NAHB) latest survey. Since 2020, construction worker wages have risen by 35%, raising the cost of repairing damages. These factors contribute to higher claims costs for insurers.
State Insurance Laws
Alaska operates under a file and use system, allowing insurers to notify state departments and raise insurance rates without full approval from the Alaska Division of Insurance. Home insurance is required if you're getting a mortgage, and with many Alaskans living in remote areas where homeownership costs are extremely high due to transportation and construction challenges, the insurance market remains limited.
This smaller pool of insured properties, combined with the high costs of repairs and replacements in isolated communities, increases the risk profile for insurers covering Alaska homeowners.
What Affects Alaska Home Insurance Costs?
For most home insurance companies, pricing depends on several factors:
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
We'll show how each factor impacts rates specifically for residents of Alaska.
How Much Does Coverage Affect Home Insurance Costs?
Coverage choice is the most influential factor in Alaska home insurance rates, ranging from $776 to $5,002 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $65 | $776 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $417 | $5,002 |
How Much Do Home Details Affect Home Insurance Costs?
Depending on home details like age, construction materials and roof type, homeowners insurance rates in Alaska can range from $52 to $126 per month. These factors affect replacement costs and the risk of damage or theft, making home details the third most influential factor for insurance rates.
| Lowest | New | Superior | Tile | $52 | $624 |
| Highest | Old | Frame | Shake-Treated | $126 | $1,514 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the third most influential factor in Alaska home insurance rates, with prices ranging from 35% below to 41% above the state average.
| Lowest | Umialik Insurance | $80 | $958 |
| Highest | USAA | $172 | $2,068 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 28%, with annual average rates ranging from $1,325 to $2,163.
| Lowest | Excellent | $110 | $1,325 |
| Highest | Poor | $180 | $2,163 |
How Much Does Claims History Affect Home Insurance Costs?
In Alaska, claims history has a smaller impact on homeowners insurance premiums than other factors, affecting rates by up to 24% or about $948 annually. Filing more claims increases perceived risk, leading to higher premiums. Residents with a claim-free history enjoy lower rates, while those with multiple claims could see a significant increase in their premiums.
| Lowest | Claim free for 5+ years | $122 | $1,468 |
| Highest | 2 claims in past 5 years | $201 | $2,416 |
Tips to Save on Alaska Home Insurance
With high home insurance costs in Alaska, finding ways to save on premiums is important. Whether you're buying a home or cutting current expenses, below are tips to help you secure the best and cheapest home insurance in Alaska tailored to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To determine if you’re getting a good deal, understand the average costs for you and your home. Also, ask agents about all available home insurance discounts, as some insurers apply certain reductions only if requested.
- 3
Compare Multiple Providers Through Different Avenues
Compare multiple insurers apples to apples to find the best coverage for your needs. Use various methods, including online comparison sites, brokers, provider websites, and agents, as quotes vary significantly across these channels.
- 4
Consider Bundling Policies
Bundling policies can lead to significant savings on both policies for Alaska homeowners, with many saving up to 25% overall.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums drastically. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
If you are denied by traditional insurers, Alaska offers coverage through the Alaska FAIR Plan to insure you. While Alaska FAIR Plan policies don't offer the same amount of coverage you get with traditional policies, they do satisfy mortgage requirements.
Alaska Home Insurance Calculator: Bottom Line
Home insurance costs vary with coverage level and provider. Find affordable rates by researching your needs and average costs. Our estimate tool can also help you get the best deal.
Homeowners Calculator Insurance Alaska: FAQ
The cost of homeowners insurance in Alaska depends on various factors. Your credit score, home details and coverage choices can affect expenses. Understanding these can help you estimate your costs better.
How much does homeowners insurance cost in Alaska?
Alaska's average monthly home insurance cost is $110 for a dwelling coverage of $250K. Your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your chosen coverage level and provider. Your credit score and home details also influence your premium.
How We Determined Our Alaska Home Insurance Estimates
When determining the average cost of home insurance in Alaska, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.