The best homeowners insurance Alaska programs cover the sometimes inclement weather in the area, but they also take into account the rural nature of much of the state. You may need something a bit different from the norm if you are planning a move to the state that is known colloquially as the Last Frontier. Here are a few of the best tips from pros on how to find the best deal on homeowners insurance in Alaska.
What Kind of Homeowners Insurance Do I Need If I Want to Live in Alaska?Â
Although the occasional typhoon will make its way into the residential mainland and cause big damage, the bigger concerns in Alaska come from the fact that the sun gives less energy to the state than in normal places. Alaska has lower temperatures and extended snows during certain parts of the year. This consistently difficult weather can cause slow damage rather than quick emergencies, and to maintain your home, you must protect against these things. Alaska gets earthquakes, floods, landslides, and wildfires, but they are not enough to raise the average price of homeowners insurance in Alaska past the national average. As a matter of fact, at $942 a year, the average for Alaska is approximately $100 less than the national average in the US.
If you have expensive assets in your home, then you may want to invest in an HO-5 homeowners insurance policy. HO-5 is an open perils policy that covers everything that is not explicitly named as a non-protected situation. Unlike the common HO-3 policy, HO-5 policies cover the personal assets in your home, not just the structure or loss of use. HO-5 is more prevalent in Alaska because of the consistently difficult weather conditions that may cause certain aspects of the house to warp or stretch in the weather.
How Do I Choose the Right Company?
In Alaska, you need a company with access to emergency features that can be called at a moment’s notice. Alaska is the biggest state in the nation, twice the size of Texas. The state also has certain pockets of residential plots that are very hard to get to. Does the insurance company that you are considering have the ability to get you mobile power generation if an unexpected accident takes your house completely off of the grid? There are no county lines in Alaska, so what part of the state does your preferred company service? These are two of the most important questions to ask, and you should narrow down your list of choices by these essential criteria before you move on to other considerations.
Homeowners insurance is not a policy that can be stopped in the same way as auto insurance can: Once you sign up for a six-month program, you owe all of the money for those six months. You cannot simply stop paying and switch companies without notice like you can with cars. You should, therefore, make sure that your company does not ever have a lapse in coverage; they should be ready whenever you need them. Not only should you check the policy for how your company will respond to emergencies, but you should also check online reviews to ensure that what your company says is actually what it does. A.M. Best is a watchdog agency that is created especially for the insurance industry; however, you can also check ratings from Standard and Poor and Moody’s. The Better Business Bureau (BBB) is another great place to find reviews. This should help you to eliminate even more companies from your shortlist.
How Can I Get the Best Deal for My Money?
The first step that you can take is to secure your home. You may be able to negotiate a reduction of five percent or more on your homeowner’s insurance premium for a central security alarm in your home. You may be able to get an even larger amount deducted for your fire alarm installation. Updating your plumbing and heating systems may also help to reduce the risk of the insurance company, resulting in a lower monthly premium payment for you.
Additionally, you may be able to lower your premium payments if you increase your deductible. If you have cash saved in an emergency account, then this may be an advantageous move for you. You may get another huge discount for the installation of a sprinkler system over high-risk portions of your house such as the stove and the fireplace. This discount can be up to 20 percent off of the normal monthly premiums.
You should also check for new deals on the market at least twice a year. Insurance in Alaska is a very competitive business, and you may be able to take advantage of even more discounts just for keeping your ear to the street. Finally, if you can separate the house from the land in your insurance policy, you may be able to bring in an even better-priced policy. Because the land is not at risk of being destroyed in the same way that the house is, there is no reason for you to insure it with the same amount of money.
2 Point Highlight
Homeowners insurance is not a policy that can be stopped in the same way as auto insurance can: Once you sign up for a six month program, you owe all of the money for those six months.
Because the land is not at risk of being destroyed in the same way that the house is, there is no reason for you to insure it with the same amount of money.
