Homeowner insurance coverage in Alaska is ranked No. 15 in the comparative table of average insurance rates for condos, mobile homes, and manufactured homes in the U.S. Average annual premiums are pegged at the approximate value of $850.
The state of Alaska has conditions that are unique in comparison to the other states in the U.S., thus making it a must for homeowners to get insurance coverage in order to protect their homes and personal belongings. One such unique conditions results from its extreme northern location. Because of its proximity to the Arctic Circle, homeowners should expect more of snow and ice, as well as strong blizzards especially during winter. Thankfully, the basic coverage in the state includes protection against snow, ice and blizzards (which are considered “wind” damage). Another important consideration is that Alaska is located in the geographic region known as the “Pacific Ring of Fire”. This makes the state and its residents particularly vulnerable to the threats posed by volcanic eruptions and earthquakes. Unlike snow and windstorm damage, however, earthquake and volcanic eruption is not included in the standard insurance policy.
A Homeowner insurance policy in Alaska is comes in a package of several types of coverage. The following types of insurance coverage comprise the standard Alaska insurance policy…
· Dwelling Coverage – This coverage provides protection in the event of damage to or destruction of the home as a result of basic perils, except floods, earthquakes or maintenance-related causes (such as the house collapsing as a result of long periods of disuse. This is the basic coverage required by mortgage lenders from homeowners who have not yet completed payments on their homes.
· Coverage for Other Structures – This particular coverage provides protection for detached structures such as garages and sheds. This excludes second homes and dwelling structures for other people. These should be considered for separate Dwelling Coverage.
· Loss of Use - If damage to the home and its consequent repairs and rebuilding forces the homeowner and his/her family to seek accommodations elsewhere, Loss of Use will provide for the added living expenses, such as renting an apartment, food and clothing, in order that they could still enjoy a normal standard of living.
· Personal Liability – If someone is injured on the homeowners property or damage occurs to another’s property, this covers lawsuits in the event that the homeowner is deemed liable by the court.
· Medical Payments – This will pay for the medical expenses if someone (other than the homeowner and his/her family) is injured on the homeowner’s property.
As mentioned earlier, flood insurance is not included in the basic policy. Areas that experience Alaska’s runoffs on a regular basis need to get flood coverage added to their basic policy package or apply for a separate policy with the National Flood Insurance Program. Earthquakes are also an occasional occurrence in the state, so Alaska residents need to avail of earthquake insurance as well.
With the state’s unique conditions, it is a must for residents to acquire a homeowner insurance plan in Alaska in order to protect their most valuable investment: their home.
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Homeowner insurance in Alaska provides coverage in the event of damage to your property from theft, fires, floods, and natural disasters as well as protects you from liability for injuries or damage caused to people on your property. The right homeowner insurance rates from a reputable agent can help you make the best choices about this important protection for you and your family.