Knowing How Much Alaska Homeowners Insurance Coverage Should You Buy

By: Nathan Moo

Life in Alaska is different than most other places in the United States. Although there is no income tax or sales tax, living in "The Last Frontier" can often be expensive. The median value of a primary residence is about 20 percent higher than the national median value. Homeowners insurance is also more expensive than in most other states. If you still don't know how much Alaska homeowners insurance coverage you should buy, don't be surprised if it's more than what you used to pay.

If you've only heard about the more expensive parts about Alaska, you may be scared of the entire concept of moving there. It doesn't have to be that bad: consider that "The Last Frontier" has one of the highest median incomes in the nation. The median household income in Alaska is about 30 percent higher than the median national income. And although homeowners insurance is more expensive than homeowners insurance in most other states, it usually doesn't take the No.1 most expensive spot.

First of all, take into account the cost of homeowners insurance costs before buying a house -- not afterward. If you can't afford the homeowners insurance, you can't afford the house. And regardless of what state you live in, you want to have enough coverage to pay to rebuild your house if it's destroyed. You should have the house appraised and make sure that the policy covers at least 100 percent of the value of your home.

Also, be familiar with the three main types of homeowners insurance coverage. The most basic policy is often referred to as HO-1, which offers protections against fires, lightning, damage from riots, windstorm or hail, explosions, vandalism, theft, glass breaking, smoke and personal liability, and volcano eruptions. (Alaska has more volcanoes than any other state in the nation.) It usually doesn't include damage from floods or earthquakes.

HO-2 coverage is a middle-of-the-road type of coverage, and it's used only by a minority of homeowners. It typically includes damage from falling objects, water damage that appliances may have caused, or damage caused by weight of snow or sleet, as well as coverage that you would normally have under an HO-2 policy.

Many people opt for HO-3 coverage, the most comprehensive between HO-1, HO-2 and HO-3. It even usually covers damage from flooding or earthquakes.

When you're looking for homeowners insurance, take into account what part of Alaska you live in. As far as geography, Alaska is the biggest state in the nation. The cost of homes and homeowners insurance can vary greatly based on whether you live in a rural area or in one of Alaska's few cities.

Article Source: http://yourfinance.co.za

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