The Best and Cheapest Renters Insurance in Alaska for 2021: Rankings, Reviews and Rates
Renters insurance is a wise investment, as it can protect your personal property from a wide variety of perils. MoneyGeek’s research shows the cheapest renters insurance policy in Alaska can save you more than $100 per year compared to the most expensive option in the state.
MoneyGeek ranked the top renters insurance carriers across Alaska to help you find the best coverage at the lowest price. This scoring system assesses the customer service, affordability and financial strength of providers across Alaska so you can find the right company for your requirements.
Cost is a crucial factor while selecting a renters insurance plan. In Alaska, the two most affordable companies are Allstate and State Farm. Allstate’s average annual rate is $66, while State Farm’s typical yearly premium in this state is around $115.
Each renters insurance carrier’s average annual and monthly costs are based on quotes in diverse ZIP codes across Alaska. The prices are for a plan with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
Personal Property Coverage:
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Best Renters Insurance Companies in Alaska
Many customers value excellent customer service as much as affordable pricing. Renters insurance policyholders typically want their claims settled fairly and promptly.
To pick the best renters insurance firms in Alaska, MoneyGeek rated providers on three factors: financial stability ratings from AM Best, customer service scores from J.D. Power and unique affordability data. The research shows that Allstate is the best renters insurance carrier in Alaska, with a score of 95 out of 100, and State Farm is second, with a score of 85.
More About Allstate
Besides standard renters insurance coverage, Allstate also offers guest medical, identity restoration and scheduled personal property coverages. This provider's rebates include their “55 and retired” discount, claim-free discounts, easy pay plan, multi-policy discount and safe home discount.
Standout features of Allstate's coverage are its inclusion of water and sewer damage and the absence of overall restrictions on reimbursement amounts.
More About State Farm
Apart from standard coverage, State Farm offers optional add-ons such as personal articles, pet medical insurance, additional liability coverage, identity restoration, earthquake damage, additional business property and incidental business liability.
State Farm provides discounts for bundled policies and home alert protection devices. State Farm also makes it easy to initiate claims online or via its mobile app.
More About USAA
USAA's renters insurance coverage includes guest medical protection, personal property protection, reimbursed living expenses and renters liability coverage. You can add endorsements or riders to your policy, such as earthquake coverage, identity theft protection, sewage and drain backup and valuable items coverage.
USAA offers property-specific discounts for smoke detectors, home monitoring systems, deadbolt locks on outside doors and alarm systems.
Largest Renters Insurance Companies in Alaska
The five largest insurance providers in Alaska based on market share are State Farm (32.11%), Allstate (18.64%), USAA (17.62%), Liberty Mutual Group (10.25%) and Country Financial (8.60%). These five firms provide about 87% of renters insurance plans in Alaska. It’s advisable to select a large carrier as it is more likely to be financially stable and can settle your claim quickly.
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Average Cost of Renters Insurance in Alaska
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The average annual price of renters insurance in Alaska is $91, about $69 less than the national average. The typical Alaska renter pays about $8 per month, $5 less than the monthly national average. These costs are for plans with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
By comparing renters insurance packages, you can save a significant amount of money on your policy. For instance, our sample renter in Alaska saved about $50 a year by opting for the most affordable carrier, Allstate, instead of going for the more expensive State Farm policy.
What Factors Impact Renters Insurance Cost in Alaska
Many factors can affect your monthly renters insurance price in Alaska. The following factors are some of the most important in determining your rate.
Coverage Amount: Your premium will increase if you opt for more renters insurance coverage. A home inventory can help you find out the cost of replacing your property if there is damage due to an accident.
Location: Homes in neighborhoods with a higher risk of severe weather or crime will have higher renters insurance rates.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): You can opt for either ACV or RCV coverage. ACV policies consider that your property loses value over time, so they’ll pay you less to replace your damaged or lost goods. RCV policies cover the cost of a new item of similar quality and type. With an ACV plan, you can save premium costs, but you’ll get less reimbursement if you make a claim. RCV packages are costlier than ACV, but they provide enough money to replace your property.
Deductible: You need to pay a deductible to the insurer when they accept your claim. Higher deductibles will reduce your monthly premium, as you need to pay more out of pocket. Lower deductibles mean higher premiums, as the insurance carrier needs to pay more to replace your property.
Credit Score: In Alaska, providers consider your credit score to determine your probability of making a claim. According to carrier calculations, those with bad credit scores are more likely to file claims. Therefore, they are charged more for renters insurance. Conversely, if your credit score is excellent, you can even get a discount on your premium.
Renters Insurance in Alaska: What You Need to Know
Renters insurance is a relatively cheap method to protect your property from unforeseen disasters like bad weather conditions, fire, theft and more.
In Alaska, renters make up about 33% of the population, and the average monthly rent price is $1,201. For a standard renters insurance package with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible, the average monthly premium is $8, or less than 1% of the monthly price of rent.
What Renters Insurance Typically Covers in Alaska
It’s smart to understand what is covered and not covered by a renters insurance policy in Alaska before you purchase one. Most packages offer the four basic coverages of personal property, liability insurance, additional living expenses and medical payments. You can also opt for additional features like identity theft insurance and earthquake coverage.
In Alaska, personal property insurance will cover damages due to natural disasters, such as wildfires.
What Renters Insurance Typically Does Not Cover in Alaska
The following issues are typically not covered by renters insurance in Alaska:
Earthquake Damage: If you want coverage for earthquake damage, you’ll need to purchase additional insurance.
Flooding: Typically, renters insurance plans exclude flooding due to natural disasters. If you want flood protection, you should get flood insurance via the National Flood Insurance Program (NFIP).
Roommate’s Property: Renters insurance typically does not cover a roommate’s property, and they need to buy their own policy.
Structural Damage: Renters insurance does not cover damage to the home’s frame and structure, which are the landlord’s responsibility.
Expensive Items: Renters insurance does not cover costly items like gaming computers and jewelry, and you need to purchase add-on coverage to safeguard your valuables.
Ask your insurer for detailed information on what your renters insurance policy typically covers. Obtain clarifications from the insurance rep before buying a plan, so you know you’re buying the coverage you need.
FAQs About Renters Insurance in Alaska
Alaska law does not mandate renters insurance, but your landlord may require it.
It’s a smart idea to get renters insurance in Alaska because you can receive reimbursement for lost, stolen or damaged property without breaking the bank.
Yes, your landlord’s contract can require you to buy renters insurance as a condition.
According to MoneyGeek’s research, the average rate of a renters insurance policy is $8 per month in Alaska for $20,000 in personal property coverage and $100,000 of liability coverage with a $500 deductible.
MoneyGeek’s data shows that Allstate and State Farm offer the most affordable renters insurance plans in Alaska.
Renters Insurance in Alaska Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from three of the top insurance companies in Alaska that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Alaska. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
About the Author
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