Alaska Homeowners Pay Some of the Lowest Insurance Costs In The Country

Alaska homeowners are paying some of the lowest insurance premiums in the nation, even as rates across the country climb to historic highs.

Rising costs in coastal states like Florida and Louisiana have fueled widespread concern over affordability, but data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report, show Alaska remains relatively insulated from the sharpest increases.

Alaska’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Alaska homeowners with a mortgage typically pay $1,000–$1,499 a year for homeowner’s insurance, while those without a mortgage pay $800–$999; overall costs fall in the $1,000–$1,499 range.

At the extremes, Alaska has 182,292 insured homeowner households in total—110,175 with a mortgage and 72,117 without.

Among mortgaged owners, 10,862 pay less than $100 annually and 6,473 pay $4,000 or more. Among those without a mortgage, 26,626 pay less than $100 and 2,659 pay $4,000 or more.

Climate Risks Elsewhere Push Premiums Higher

The Realtor.com 2025 Climate Risk Report highlights how climate exposure drives insurance burdens nationwide. In high-risk southern metros like Miami, Florida, homeowners face annual premiums averaging $22,718, or 3.7% of the median market value. Cape Coral, Tampa, and Sarasota also rank near the top for steep premiums relative to home values.

Flooding alone threatens nearly $306.8 billion in residential value in Miami and $117.7 billion in Tampa, with both metros ranking among the top in the U.S. for flood exposure. In addition, every home in 14 Florida metros, including Orlando, Jacksonville, and Tampa, is classified as facing severe or extreme hurricane wind risk. Deductibles compound the problem: with a 5% hurricane deductible, a homeowner with $400,000 in coverage could face $20,000 out of pocket before insurance kicks in.

By contrast, Alaska is absent from the list of top metros most affected by flood, wind, or wildfire risk, though it still has it's own risks to consider.

State Sen. Bert Stedman, R-Sitka, earlier this year put forth that the state needs to offer its own flood insurance alternative because the federal government’s current policies are inadequate and expensive for many Alaskans.

“They’re getting ripped off by the federal government on flood insurance. They’re getting that economic shotgun held to their head on how they can rebuild their properties that’s frankly unfair,” Stedman said.

He proposed a bill that would create an Alaska Flood Authority to manage a state flood insurance fund.

National Worries About Insurance Affordability

Despite Alaska’s relative affordability, insurance costs remain a national concern. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they have already faced difficulties renewing or obtaining policies.

Premium hikes are already affecting household decisions. 42% of survey respondents said they’ve seen their insurance premiums rise, and nearly 30% of homebuyers reported changing their search areas due to insurance challenges. Perhaps most concerning, 58% of homeowners said they would consider dropping insurance altogether if costs became too high, with younger generations the most likely to go uninsured.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.