Home to nearly 300,000 residents, Anchorage ranks as Alaska’s most populous city and accounts for nearly 40 percent of its residents. The state boasts the largest land area in the United States, with mountain views as far as the eye can see, endless summer sunshine, and coastal homes. Anchorage is no exception, and it should come as no surprise that almost half of all Alaskans choose to reside here: it has a perfect balance between beautiful scenery with wildlife right in town and urban life full of theater, museums, concerts, and other local events.
It is no wonder that so many people follow Alaska’s motto and move “North to the future.” Living expenses in Anchorage are slightly lower than the national average, despite having the perks of living on the water and a friendly, informal culture in the state’s largest city. But living in an environment with a unique climate may mean that your home is subject to extreme conditions for the majority of the year.
If you’re looking for your first homeowners policy or searching for savings, Insurify’s comparison tools make your home insurance search quick and easy. Compare Anchorage home insurance policies, insurance agencies, and insurance quotes to find great coverage options that fit your needs.
Overpaying for Anchorage home insurance?
How to Find Cheap Home Insurance in Anchorage
Buying a home may be one of the largest financial investments of your lifetime. With investment, inevitably, comes risk. However, there are steps homeowners can take to minimize risk and protect their investment.
The first step to protecting your property is homeowners insurance. Though not required by law, home insurance provides financial liability for your property and belongings from natural disasters and theft. Different coverage levels are available for different property types, locations, and other factors.
The most significant risks that homeowners face include theft, fires, vandalism, and natural disasters. While these risks can happen anywhere, CBS News ranked Anchorage as number 13 out of the 50 most dangerous cities in America, with the rate of violent crime as 1,245 per 100,000 residents. According to a new data analysis from a University of Alaska researcher, Alaska saw its violent crime rate rise over the past 30 years, even as its overall crime rate fell.
The best way to protect your home, personal belongings, and personal liability if these happen is to purchase the best homeowners and auto insurance policies, and potentially additional coverage as well.
Coverage levels exist for every corner of the United States, and the cost of homeowners insurance can differ depending on the type of home and the ZIP code. Bundling auto and home insurance together in one policy can be a productive first step to protecting your belongings and liabilities, especially since many homeowners insurance companies offer bundling on most of their insurance products at a discount. If you don’t see a bundling offer when you buy your policy, ask your local agent.
Keep reading for a full guide on Anchorage home insurance and what insurance options might be best for you.
Cheapest Home Insurance in Anchorage by Company
Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in.
As of 2021, the average home insurance premium in Anchorage costs $1,361 annually, and the median home value is $343,909. Alaska’s home insurance premiums rank at 34th most expensive in the United States.
Home insurance rates in Anchorage are very affordable, considering the city’s appeal of living on the coast and being a considerably urban area. But home insurance policies in Alaska include perils such as earthquakes, floods, and tsunamis. Those looking to move to Anchorage may need to consider purchasing additional earthquake insurance or flood insurance to account for covered loss and property damage, in addition to basic homeowners coverage.
|Average Home Cost in Anchorage||Average Annual Insurance Premium in Anchorage|
Cheapest ZIP Codes in Anchorage for Home Insurance
When searching for your Anchorage home, you may have noticed that housing costs can vary depending on which neighborhood you’re looking to live in. The same variance applies to home insurance rates.
Like property costs, home insurance varies in price from city to city. Pricing is determined by ZIP code–specific variables, such as the volume of claims filed nearby, crime rates, and property costs, and risk variables, such as natural disaster frequency. Even your specific neighborhood may determine if you pay more or less on your annual premiums.
If you’re living in Government Hill, you can expect to pay lower premiums than homeowners in Seward Highway. This area’s real estate prices are more expensive than 99 percent of the neighborhoods in Alaska, and the average rental cost is higher than 71 percent of Alaskan neighborhoods because it sits on the coast. Home insurance rates are based on your ZIP code, so if your neighborhood has higher crime rates or is at higher risk for earthquakes or floods, you’ll be left paying higher premiums. Even your neighborhood’s home values and the number of insurance claims filed nearby can affect the cost of your individual homeowners policy.
Rates in Anchorage are lower than the national average, but your specific home insurance rate will be based on the exact location of your home. Here are the most and least expensive ZIP codes in Anchorage for home insurance.
|Most Expensive Real Estate in Anchorage||Cheapest Real Estate in Anchorage|
|Seward Highway/Potter Valley Road||$620,459||Government Hill||$118,533|
|Hillside Drive/Abbott Road||$596,600||Turnagain Arm||$202,967|
|De Armoun Road/Rabbit Creek Road||$515,525||Girdwood||$278,000|
Home value data from zillow.com
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Home Insurance Coverage Types in Anchorage
There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:
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Protecting Your Home from Earthquake Damage
Alaska is notoriously prone to earthquakes and experiences more magnitude 7.0 earthquakes than the rest of the United States combined. More than 75 percent of the state population lives in an area that can experience a large earthquake, and Anchorage is no exception. It’s important to protect your home from ground shaking, landslides, and floods.
Alaska’s government suggests that its residents consider purchasing an additional earthquake insurance policy, as most homeowners insurance policies don’t cover damage resulting from earthquakes and additional aftershocks. Obtaining extra coverage is one way to protect your home, personal belongings, and other investments from damage caused by earthquakes.
Living in earthquake zones can raise homeowners insurance rates, but Anchorage real estate values are relatively affordable compared to more expensive coastal areas in the United States. While earthquake insurance policies may be costly due to Alaska being highly prone to seismic activity, purchasing one will still help you save money on costly repairs in the long run.
Natural Disasters and Anchorage Homeowners Insurance
Alaskan geologists are hard at work to reduce the vulnerability of people and areas most at risk from natural disasters, but the very existence of these hazards makes protecting your home incredibly important. Anchorage regularly experiences a variety of natural disasters, as well as the impact of having an intense climate. In addition to earthquakes, the city is exceedingly vulnerable to volcanoes, landslides, and damage from extreme weather, such as avalanches and wildfires.
In addition to purchasing the right coverage options for you and your home, it is also important to educate and familiarize yourself with the resources available. There are information, products, and expert knowledge to help residents better protect themselves and their assets and, in turn, build a more resilient community. It is recommended to learn more about the hazards that could occur in Anchorage and the greater area of Alaska and how to protect your belongings and loved ones before, during, and after a significant hazard or disaster event.
Frequently Asked Questions - Anchorage Homeowners Insurance
How does bundling work with Alaska homeowners insurance?
With bundling, you can combine home insurance with auto insurance and save money with multi-policy discounts and a single insurance provider. Bundling can also include life insurance, renters insurance, and other products. Talk to your insurance agent for more information and deals.
Should I buy a disaster-recovery plan for my small business?
Considering the number of natural disasters and extreme weather hazards that Anchorage residents face, a business disaster-recovery plan can contribute toward a covered loss in a post-disaster environment. Although some businesses are unable to reach the same revenue levels following a disaster or destruction, insurance can assist in construction and coverage following an earthquake or flood.
Why is home insurance relatively inexpensive in Anchorage compared to other U.S. cities?
While Anchorage is Alaska’s largest and most populous city, its overall location can make it a less attractive move for some people. The distance from the lower 48 states and the inability to travel across state borders make it relatively remote and inaccessible. The perks of living on the coast at a fraction of the cost of other beach towns and almost 18 hours of sunshine a day in the summer can be worth it if you’re willing to trade off the extreme weather conditions during other seasons of the year.
Buying a home is stressful enough—don’t let insuring it get in the way of enjoying your new property.
Conclusion: How to Find the Cheapest Home Insurance in Anchorage
While Anchorage real estate is some of the most expensive in Alaska, the real estate values and home insurance policies don’t compare to many of the costlier coastal cities in the United States. You can cut costs and have the best of both rich wildlife and larger city life by comparing home insurance policies before pressing “buy” on the first policy you’re offered.
Use Insurify to compare home insurance quotes for your property in Anchorage.
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