Alaska Homeowner's Insurance

Standard Alaska Homeowners Insurance Coverage

The most common type of homeowners insurance is the HO-2 policy, also called "broad coverage." In Alaska, the average cost of this type of homeowner's policy is around $856, and covers you against all perils except those which are specifically excluded in your policy. Wind, hail, aircraft, riots, volcanoes, explosions and smoke are the most common named perils which are included, and those which are specifically excluded might include war, movements of the earth, and floods.

Additionally, there are four primary areas of coverage included in a standard home insurance policy. Since each one is handled differently, it is in your best interest to understand the terms as they apply to your home insurance policy:

Dwelling
This part of the policy protects the structure of your home. This is the part of the policy which covers damages to your roof after a storm, or replaces damaged flooring after a broken water pipe, to name only two examples. The dwelling is the part of the insured property where people live, including any attached buildings but not ones that are detached from the home.
Other Structures
This portion of the policy provides coverage for your garage, workshop, and other structures located on the insured property. Other structures can be any additional buildings, such as a pump house, storage shed, or pool house, so long as each one is a free-standing structure. Most policies will cover other structures up to 10% of your dwelling insurance. If this is not enough coverage, more can be purchased as a rider on your homeowner's policy.
Personal Property
Your personal property is anything located on the premises. Your lawn equipment, household furnishings, appliances and furniture are all personal property. Because the personal property portion of your policy will only cover a percentage of the home insurance policy value, it may be necessary to insure some types of personal property separately, such as your jewelry, guns and other high-value items.
Loss of Use
If your home is damaged to the point where you are not able to reside in it, the loss of use clause of your policy becomes effective. This portion of the policy pays for your lodging, meals and other facets of daily life that have been disrupted by not being able to stay in the home.

Average Alaska Homeowner Insurance Rates vs. US

Source: USCB

Cheaper Alaska Home Insurance

The cost of home insurance varies by state and company underwriting the policy, but you can take some steps to keep your premiums as low as possible. Getting cheaper home insurance rates can be accomplished in three main ways:

Secure the Home
Installing a home security system reduces the risks associated with insuring the property. When the security system is monitored by an off-site company, the risks are even lower. Putting up a fence around the property is another way of reducing the premiums by reducing the risks. Securing your property also means removing dead tree limbs or other objects that could cause damage to the home. The safer you make the home, the lower you can expect your premiums to be.
Improve your Health
You are an important factor in determining your home insurance premiums. Quitting smoking is a good example, because you are not only reducing your personal risk, you are also reducing the risk of fire. Similarly, non-drinkers are less of a health risk, and that means lower insurance rates.
Personal Variables
Your credit score is going to play a part in determining your home insurance premiums. A credit score above 650 will net you the lowest premiums, but the actual amount you save will be different according to the state you live in and the company you choose for coverage.

Home Characteristics Affecting Alaska Insurance Rates

Your individual rates may not be $856 for a lot of reasons. The size of your home is an important factor because home insurance is based on the square footage being insured. If your home is located in a high-crime zone, it will cost you more and a home in a "safe" zip code will result in paying less. A standard policy is rarely enough coverage, though. Each policy needs to be customized to fit the circumstances, such as choosing full replacement insurance over cash value coverage. Save money on the total policy where you can, but avoid cutting corners where your family's home is concerned. It will cost more to insure a home with a pool, for example, but the cost is lower when the pool is completely enclosed in a protective fence.

Defending Your Home Against Crime & Vandalism

In Alaska, the burglary rate is 4.37 out of every 1000 people. To protect you better, your home insurance policy includes coverage against theft and burglary in your house and elsewhere on your property. Two simple ways you can lower your home insurance premium in this respect would be to install a security system that is constantly monitored by an alarm company, and to install a fence around your property to make it plain where your property begins and the public right of way ends. Remember that the basic insurance policy probably does not cover all of your valuables. Where possible, store precious items in a safe deposit box at another location, and increase your personal property limits on the things that remain at home.

Local Natural Disasters Alaska Homeowners Should Consider Protecting Against

Make sure that your home insurance policy includes coverage for the perils that are common in Alaska, or purchase an insurance rider for those which are not included. It might help you choose the right coverage if you know a little more about how your state compares to others for specific perils.

Earthquakes
Alaska is ranked 1 out of 51, m the making it among highest risk states for earthquakes. Earthquakes are not included in most standard insurance policies, but Alaskan homeowners would do well to consider adding coverage to their policy.
Flood
Alaska only had 4 claims in 2009, compared to 46,621 nationwide. For maximum protection, add flood insurance, even if the home is not located in a recognized flood plain. Flooding is not included in a standard home insurance policy, and may have to be purchased through high-risk insurance pools.
Hail
Damage from hail can occur in any state, ranging from minor damages to extreme cases where windows are broken, metal siding is dimpled and structures are made uninhabitable. Hail is one of the named perils included in a standard home policy.
Hurricanes
Hurricane damage is rare in Alaska. It is important to have coverage for flooding, but other hurricane related damages are typically included in a homeowner's policy.
Tornadoes
Alaska may see as many as 0 per year, out of [NAtTLTORNADO] experienced nationally. Your standard policy covers wind damage, and that should be sufficient for your purposes. The possibility of flooding is the major danger you face where tornadoes are concerned.
Wildfires
Each year, there are 74,749 wildfires nationwide. Because of the amount of forested land in Alaska, wildfires are a real danger that needs to be protected against. Fire is one of the named perils included in a standard home policy, but review your policy limits to make sure that your coverage is sufficient. In some locations, you may have to purchase wildfire protection through special insurance offerings if traditional companies do not offer the coverage.