According to Pew Research Center, 71% of homeowners say their insurance premiums have increased over the past few years.
That is important to know, but it should not scare you away from buying a home. It simply means you should look at more than the purchase price and mortgage payment when building your budget.
Here in Alaska, two homes with similar prices can have very different insurance costs.
The age and condition of the home, roof, heating system, road access, distance from fire services, and location may all affect the cost and available coverage.
A property may also include features we commonly see across the Mat-Su Valley, Anchorage, and Eagle River, such as a wood stove, fuel tank, private well and septic system, detached shop, greenhouse, shed, cabin, or additional acreage.
That is why Travis and I encourage buyers to speak with an insurance professional and request a quote early ideally before making an offer.
Questions Alaska Buyers Should Ask
Is earthquake coverage included?
Alaska is earthquake country, but earthquake damage is often not included in a standard homeowners policy. Ask whether separate coverage is available, what the deductible would be, and what damage it covers.
What about flooding or landslides?
Flooding and earth movement, including landslides, may be excluded from a standard policy. Ask whether the home’s location creates additional risk and whether separate coverage may be needed.
Is the home covered for the full cost to rebuild?
The price you pay for a home is not necessarily what it would cost to rebuild it. Alaska’s labor, material, freight, and transportation costs can make reconstruction more expensive, especially in areas with limited access.
Ask how the replacement-cost estimate was calculated and whether it reflects current Alaska construction costs.
Are the shop, greenhouse, garage, shed, or cabin covered?
Many Alaska homes come with valuable structures beyond the main house. Standard coverage for other structures may not be enough for a large shop, detached garage, greenhouse, storage building, or cabin.
Be sure to mention every structure when requesting a quote.
What winter damage is covered?
Ask about frozen pipes, roof damage, heavy snow and ice, water intrusion, and heating-system failures. You should also understand any requirements involving winterization, maintaining heat, clearing snow, or completing routine maintenance.
Does the policy cover required building-code upgrades?
If an older Alaska home is damaged and must be repaired to meet current codes, the additional work may not be fully covered without ordinance and law coverage.
Ask whether this protection is included and whether the limit is enough.
What happens if the home becomes unlivable?
Additional living-expense coverage may help pay for temporary housing after a covered loss. In Alaska, finding short-term housing especially during winter or in smaller communities may be difficult and expensive.
Ask how much coverage is provided and how long it lasts.
A Little Preparation Can Prevent a Big Surprise
You cannot control every expense that comes with buying a home, but you can control how prepared you are.
Getting an insurance quote early can help you understand the true monthly cost, identify concerns before closing, and move forward with greater confidence when the right Alaska home comes along.
Thinking about buying in the Mat-Su Valley, Anchorage, Eagle River, or the surrounding areas? Travis and I are here to help you prepare and connect you with trusted local professionals.
Insurance coverage, exclusions, deductibles, and eligibility vary by provider and property. Confirm all details with a licensed Alaska insurance professional.
Thinking about buying or selling an Alaska home? Give us a call. We will help you work through the details so there are fewer surprises when it is time to move.
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Reach out to us. We can connect you with a knowledgeable lender and help you understand what makes sense before you begin your home search.
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