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: November 12, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Dec 12, 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
Each factor changes what Alaska homeowners pay for insurance in many ways:
How Much Does Coverage Affect Home Insurance Costs?
Coverage amounts change your Alaska premium more than any other factor. Basic coverage costs $776 per year. Maximum coverage reaches $5,002 annually. Pick higher limits and lower deductibles, and you'll pay more. Choose lower limits and higher deductibles to cut 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?
Your home's age, construction materials and roof type change Alaska rates from $52 to $126 per month. New homes with superior construction and tile roofs cost less to insure. Old frame homes with shake treated roofs cost more because they're harder to replace and more vulnerable to damage.
| 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?
Which insurer you pick dramatically changes what you pay in Alaska. Rates swing from 35% below average to 41% above it.
| Lowest | Umialik Insurance | $80 | $958 |
| Highest | USAA | $172 | $2,068 |
How Much Does Credit Affect Home Insurance Costs?
Alaska insurers charge more when your credit score drops. Excellent credit gets you $1,325 per year. Poor credit costs $2,163 annually, a 28% increase.
| Lowest | Excellent | $110 | $1,325 |
| Highest | Poor | $180 | $2,163 |
How Much Does Claims History Affect Home Insurance Costs?
Claims history impacts Alaska rates less than coverage amounts or home details, but it still matters. File multiple claims and your premium jumps up to 24%, around $948 per year. Keep a clean claims record and you'll pay less. File several claims and insurers see you as risky, raising your rates substantially.
| 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.
- 1Find How Much Coverage You Need
Calculate what it costs to rebuild your home completely, then add the replacement value of everything inside.
- 2Research Costs and Discounts
Know what Alaska homeowners typically pay before you call insurers. This stops agents from quoting inflated rates. Ask every insurer about discounts upfront since some only apply them if you request them.
- 3Compare Multiple Providers Through Different Avenues
Bundle your home and auto insurance to save up to 25% on both policies. Alaska insurers reward customers who buy multiple products.
- 4Consider Bundling Policies
Bundle your home and auto insurance to save up to 25% on both policies. Alaska insurers reward customers who buy multiple products.
- 5Reduce Your Personal Risk Profile
Add storm shutters or security systems to cut your premiums. Fix your credit score for even bigger savings. Jump from fair credit to good credit and you'll save 28% on average.
- 6See if You Are Eligible for State Programs
Traditional insurers turned you down? Alaska's FAIR Plan covers high risk homes that private companies won't insure. Coverage is limited compared to standard policies, but it satisfies your 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.