Purchasing a home can be both an exciting and stressful experience. You'll want to protect your new investment as much as possible, and the best way to do so is to purchase homeowners insurance.

Before you choose a new policy, you should know exactly what is covered by your homeowner's insurance and how you can save money on this necessary purchase.

Jerry

, the licensed

home and car insurance

app, is explaining all you need to know about homeowners insurance in Alaska.

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What is homeowners insurance?

Homeowners insurance refers to coverage that protects your home and its contents. A standard homeowners insurance policy covers the loss of your home, personal liability, and property damage.

The average cost of homeowners insurance in the United States is $1,387 per year or $115 per month.

Basic components of homeowners insurance

The following are typically included in homeowner's insurance policies:

Coverage A (Structure): Covers the cost of repairing or replacing the structure of the house.

Coverage B (Additional structures): The cost of repairing or replacing other structures on the site, such as fences, pools, and sheds, is covered.

Coverage C (Personal property): Financial protection against the loss or destruction of specified personal belongings (like electronics, furniture, jewelry, etc.).

Coverage D (Other expenses): "Loss of usage" is another term for this. Pays for temporary living expenses (such as a hotel or rent) needed as a result of losing your home in whole or in part.

Coverage E (Personal liability): If someone is injured on your property (or by a pet or family member), it pays for legal bills.

You can choose between a policy that covers the actual cash value (ACV) of your property at the time of loss or one that covers the replacement cost—that is, the cost of replacing the property regardless of its actual value. In most circumstances, companies need homeowners to purchase a policy that covers at least 80% of the replacement cost.

MORE: Home insurance terms you need to know

Named perils

There is no standard comprehensive coverage for homeowners insurance unless you have a special policy. Only named perils and unique situations outlined in your agreement will be covered by your insurance. Some typical examples include:

Fire

Lightning

Wind

Hail

Hurricanes

Damage caused by vehicles

Theft

Vandalism

Riots

Falling objects

Explosions

Before you sign, check over your policy to be sure you understand what is and isn't covered!

Is homeowners insurance required in Alaska?

Alaska does not require homeowners to obtain insurance, but if you are mortgaging your property, your lender may need it. Because they have an investment in your home, a mortgage lender wants to make sure it is sufficiently insured in the case of damage or a total property loss.

How to get homeowners insurance

If you've recently acquired a house or need a new homeowners policy, start by comparing quotes from a few different firms (the

Jerry

app makes this easy!). Don't take the first referral that comes your way—you may be missing out on discounts as a result.

Always seek a quote from your car insurance company. Bundling your

home and auto

insurance policies can save you money in the long run, even if the initial cost is higher. Savings from bundling might range from 5% to 15% or more, so it's worth looking into what you might be eligible for!

Recommended home insurance coverage in Alaska

Due to Alaska's geographical location, extreme weather is one of the most significant problems for residents. Homeowners should make sure they’re protected against perils like wind and hail damage, wildfires, floods, and even earthquakes.

As the most seismically active region in the U.S., earthquakes can be common throughout much of Alaska. Here are three things to keep in mind when it comes to your home and earthquake damage:

Earthquake insurance

will cover damage to your home and property specifically incurred during and after an earthquake.

The “loss of use” part of your homeowner’s insurance can cover expenses if you have to spend time outside the house while it’s being repaired.

Refer to the

United States Geological Survey

for info on your proximity to active faults and the foundation used when your house was built.

MORE: How much does earthquake insurance cost?

What impacts homeowners insurance in Alaska?

On average, the cost of homeowners insurance in Alaska is less expensive than the national cost of $1,387 per year. Home insurance prices are influenced by a variety of factors that vary from person to person, such as marital status and credit history. However, several special circumstances can have an impact on Alaska homeowners insurance.

Extreme winter weather

Winter weather can result in severe property damage, such as hail and snow accumulation, which are two of the most typical home insurance claims. One of the most common natural hazards in Alaska is extreme cold temperatures and winter storms from October to March.

Wildfires

The damage that can be done as a result of wildfires can be completely devastating to a home and property. In recent years, Alaska has seen a particular rise in wildfires over the summer months, so additional insurance coverage may be necessary.

Homeowners insurance discounts in Alaska

Insurance companies typically provide various discounts for different customers and actions. In the table below, you'll find examples of common homeowner insurance discounts:

Discount	How to get it
Bundling	Bundling home and auto insurance could earn you a steep discount on both policies.
First-time homeowner	If you're buying your first home, most insurance providers will give you a discount.
Claims-free	If you go a particular amount of time (usually a few years) without filing a claim on your insurance, you can be eligible for a discount.
Non-smoker discount	Non-smokers present a lower risk to insurance providers than smokers and may receive a discount as a result.
Security system	If you have a security system to prevent theft, your insurance company may give you a discount on your homeowner's insurance.
Upgraded fire alarm	Set your fire alarm to directly call the fire department; your insurance company may give you a discount for a faster fire response time..

How to save on home and auto insurance

Purchasing

homeowners insurance

, especially for the first time, can be a stressful experience. However, thanks to the

Jerry

app, shopping for home insurance is now easier than ever.

Jerry, a certified broker, does all of the legwork in locating low-cost insurance quotes from more than 50 name-brand insurance providers. They can also look for

car insurance

policies that you can combine with your homeowner's policy! Once you've chosen the coverage that's right for you, Jerry will handle the rest.

Whether you're insuring your first home or looking for new, lower rates, you'll know you're receiving the best deal possible with Jerry's help.

“
Jerry
was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up for my homeowner's insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.

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FAQs

Is earthquake insurance required in Alaska?

Earthquakes are not covered by a typical homeowners insurance policy. Alaska residents may wish to consider acquiring an earthquake insurance policy in addition to their homeowner's policy—and mortgage lenders may even ask you to purchase it as a safeguard.

What is the average cost of homeowners insurance in Alaska?

The cost of homeowners insurance in Alaska varies based on where you reside and other considerations, but it is typically around $1000 a year.

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