Fairbanks, located in the interior of Alaska, is known for its extreme winter temperatures, which can lead to higher home insurance premiums due to risks like frozen pipes. Understanding the factors that impact your home insurance rate can help you find the best coverage.
National vs. Fairbanks Home Insurance Costs
While the national average cost of home insurance is $1,400 per year, homeowners in Fairbanks pay slightly more at $1,600 per year due to the city’s harsh winter weather and risk of structural damage.
Home Insurance Rates by Home Age in Fairbanks
The following table shows the average cost of home insurance in Fairbanks based on the age of the home:
Home Age
Average Annual Premium
0-10 years
$1,500
10-20 years
$1,600
20-30 years
$1,650
30+ years
$1,750
Home Age’s Effect on Insurance in Fairbanks
Newer homes (0-10 years) are built to withstand Fairbanks’ extreme winters, leading to slightly lower premiums.
Homes over 30 years old often have higher premiums due to the increased risk of structural issues and outdated heating systems.
Home Insurance Rates by Credit Tier in Fairbanks
Just like in Anchorage, your credit score affects your insurance premiums. Below are average costs based on credit score:
Excellent Credit (750+): $1,450/year
Good Credit (700-749): $1,550/year
Fair Credit (650-699): $1,700/year
Poor Credit (Below 650): $1,900/year
Cheapest Home Insurance Providers in Fairbanks
Here are the most affordable home insurance providers in Fairbanks with their average annual costs:
State Farm: $1,550/year
Allstate: $1,570/year
Liberty Mutual: $1,540/year
Progressive: $1,580/year
USAA: $1,550/year (Available to military families)
Home Insurance Rates by Deductible in Fairbanks
Here’s how different deductible amounts affect the average premium in Fairbanks:
$500 Deductible: $1,750/year
$1,000 Deductible: $1,650/year
$2,000 Deductible: $1,500/year
$5,000 Deductible: $1,350/year
Types of Homeowners Insurance in Fairbanks
HO-3 (Special Form): Common and flexible, covering your home and personal property.
HO-4 (Renters Insurance): Ideal for renters and provides liability coverage.
HO-6 (Condo Insurance): Designed for condo owners and includes interior property.
HO-8 (Older Home Insurance): For older homes that may not meet modern building codes.
Flood Insurance: An essential add-on for homes located near rivers and flood-prone areas.
Comparing Fairbanks to Other Alaskan Cities
Anchorage: Homeowners in Anchorage pay about $1,550 per year, slightly less than Fairbanks.
Juneau: Residents in Juneau have more affordable rates, with premiums around $1,500 annually, primarily due to fewer severe weather risks.
