Haris Ashley
Montana homeowners face a variety of challenges, from harsh winters with heavy snow and ice to summer thunderstorms, hail, and brush fires. As such, homeowners insurance is a critical form of protection for residents. While not required by law, most mortgage companies will require homeowners insurance for loans. The average cost of homeowners insurance in Montana is around $2,400 to $2,600 per year, but rates can vary depending on factors such as the value and age of the home, the coverage selected, and the homeowner's claims history. State Farm is a popular option, offering low rates and local agents, with an average policy costing around $1,900 per year.
| Characteristics | Values |
|---|---|
| Average cost of homeowners insurance in Montana | $2,418 per year (Bankrate) or $2,605 per year (NerdWallet) or $2,490 per year (RateWatch from S&P Global) |
| Average cost of State Farm homeowners insurance in Montana | $2,761 per year or $1,930 per year |
| Average cost of Farmers Insurance in Montana | $1,960 per year |
| Home insurance requirements | Not required by law, but mortgage companies will likely require it for a loan |
| What does insurance cover? | Damage sustained by your home and belongings in the event of a fire, lightning, smoke, theft, vandalism, water, wind, and more. |
| What does insurance usually not cover? | Flood damage, wind and hail damage (may be covered under a separate deductible) |
| How to keep costs down | Maintain your home to prevent damage from harsh weather |
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What You'll Learn
Average cost
Homeowners insurance in Montana is not required by law, but your mortgage company will likely require it for you to get a loan. The average annual cost of homeowners insurance in Montana is $2,490, according to a recent report, though other sources give the average cost as $2,418, $2,605, and $2,761. These rates may vary depending on factors such as the value and age of your home, the coverage you select, and your claims history.
The cost of homeowners insurance in Montana has been rising sharply in recent years, with a 10% increase in 2023 and a 22.1% increase in 2024. This has resulted in the average cost of insurance in Montana being higher than the national average. For example, the national average cost of home insurance is $1,311 per year, according to a 2020 report by the National Association of Insurance Commissioners (NAIC). In contrast, the average cost of home insurance in Montana is $1,347 per year, according to the same report.
The cost of homeowners insurance in Montana can also vary depending on the company providing the insurance. For example, the average cost of Farmers home insurance in Montana is $1,960 per year, which is 8% cheaper than the average cost of home insurance in the state. On the other hand, State Farm offers insurance at an average cost of $1,930 per year, which is $560 cheaper than the state average.
It is important to note that homeowners insurance in Montana typically does not cover damage caused by floods. Flooding can be a problem in Montana due to steep terrain, heavy rain, and rapid snow melt. However, you can purchase separate flood insurance to protect your property and belongings against flood damage.
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Factors affecting cost
The cost of homeowners insurance in Montana is influenced by various factors, including location, coverage choices, insurance provider, credit score, and home characteristics. Here is a detailed breakdown of these factors:
Location
Location is the most significant factor affecting home insurance rates in Montana. Rates can vary by up to 40% depending on the specific area within the state. Weather risks, home value, and population density play pivotal roles in determining the costs. Montana residents face a higher risk of natural disasters such as wildfires, floods, and hailstorms, which can increase premiums.
Coverage Choices
The level of coverage chosen directly impacts insurance rates. Higher coverage limits and lower deductibles result in higher premiums, while lower coverage limits and higher deductibles reduce costs. The coverage choices available depend on the age, construction materials, and roof type of the home.
Insurance Provider
The choice of insurance provider can significantly influence premiums, with rates varying by thousands of dollars between different companies. It is essential for homeowners to compare insurers and choose a provider that offers the best value for their specific needs.
Credit Score
An individual's credit score plays a crucial role in determining insurance rates. A higher credit score indicates lower risk and results in more favourable premiums. Conversely, a poor credit score can lead to substantially higher insurance costs. Improving one's credit score over time can help reduce insurance rates.
Home Characteristics
The characteristics of the home being insured, including its age, construction materials, and roof type, are key factors in determining insurance rates. Older homes may have higher premiums due to the increased risk of claims, especially in Montana's harsh winter conditions. Additionally, the type of roof can impact the cost of insurance, with more durable materials like tile leading to lower premiums due to their resistance to damage.
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$14.37 $24.99
$16.49 $29.95
$11.89 $14.55
Cheapest providers
The cost of homeowners insurance in Montana is higher than in most neighboring states. The average cost of home insurance in the state is $2,735 per year, which is 30% more than the national average of $2,110. However, the cheapest option for you will depend on several factors, including your ZIP code, the age and construction of your home, your credit-based insurance score, and the weather risks in your area.
According to ValuePenguin, State Farm has the cheapest homeowners insurance in Montana for most people. A State Farm policy costs an average of $1,930 per year for $350,000 in dwelling coverage, which is $560 per year cheaper than the state average. State Farm also has highly-rated customer service and received the highest rating possible from A.M. Best for financial strength and stability. However, you have to work with a local agent to buy a State Farm policy, and the company has received 5% more complaints than expected for a company of its size.
Nationwide also has cheap rates for most homes in Montana, according to ValuePenguin. However, if you need a policy with $500,000 or $1 million in coverage, Chubb is a more affordable option. Chubb caters to owners of high-value homes and has significantly fewer consumer complaints than expected for a company of its size. Their home insurance policies include extended replacement cost coverage and free Wildfire Defense Services.
Missoula and Kalispell are the cheapest cities for homeowners insurance in Montana, with average annual premiums of $2,275 and $2,295, respectively. In contrast, Baker, Montana, has the highest rates for home insurance in the state, averaging $3,624 per year. Columbia Falls, near Flathead National Forest, has the cheapest home insurance in Montana, with a policy with $350,000 in dwelling coverage costing $1,603 per year.
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Coverage options
The coverage options available to you as a homeowner in Montana depend on the insurance company you choose. The average annual cost of home insurance in Montana is $2,798, which is above the national average of $2,267. Here are some of the coverage options offered by some of the insurance companies in Montana:
State Farm
State Farm offers extended replacement cost coverage for homes, replacement cost coverage for personal property, and water backup protection. The company has received high ratings from policyholders, according to J.D. Power's 2022 surveys. The average cost of home insurance from State Farm in Montana is $2,761 per year, which is 29% more expensive than the statewide average.
Farmers
Farmers Insurance offers a variety of savings opportunities for eligible home insurance customers in Montana. The average cost of Farmers home insurance in Montana is $1,960 per year, which is 8% cheaper than the average cost of home insurance in the state.
Progressive
Progressive offers dwelling coverage (Coverage A) that protects your home's structure (roof, walls, etc.) and attached structures, such as a porch. Their other structures coverage (Coverage B) protects detached structures like fences, sheds, or detached garages. Progressive also offers personal property coverage (Coverage C), which protects your personal belongings, including furniture, clothing, and electronics.
Chubb
Chubb caters to owners of high-value homes, often worth $750K or more. The company offers extended replacement cost coverage, risk consulting, and a cash settlement if you decide not to rebuild. Chubb also provides free Wildfire Defense Services, including personalized recommendations for protecting your home and deploying firefighters if a wildfire is approaching.
USAA
USAA offers replacement cost coverage and identity theft protection with all of its home policies. They also provide endorsements for water backup coverage, personal injury coverage for legal expenses, and the Home Protector endorsement, which allows you to raise your dwelling and other structures coverage limits by 25% in certain scenarios.
It is important to note that the coverage options and availability may vary by company and location. Be sure to review your policy carefully to understand the specific coverage provided and any exclusions or conditions that may apply.
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Additional policies
Homeowners insurance in Montana is not required by law, but it is a good idea to have one, especially if you have a mortgage. The average annual premium in Montana is $2,418, according to Bankrate, although this figure can vary depending on factors such as the value of your home, when it was constructed, the coverage you choose, and your insurance history.
When it comes to additional policies, homeowners in Montana should consider the state's diverse topography and four-season weather. This includes blizzards, droughts, heavy snow, and ice, which can cause structural damage to roofs and homes. As such, it is important to review your policy to understand what “perils” are covered. Standard policies typically cover damage caused by hail, wind, or fire.
Additionally, most homeowner policies provide limited liability coverage for personal care services, such as caring for a friend's children without pay. However, if you provide daycare services in your home for a fee, you will need to purchase additional liability insurance.
Water damage is another important consideration for Montana residents. Most homeowner policies limit coverage for water damage, and flooding is generally not covered under standard policies. If you are concerned about flooding, you may need to purchase a separate flood insurance policy or consider the National Flood Insurance Program (NFIP) if available.
It is also worth noting that some business uses of your home may be partially covered by your homeowner's insurance, but it is not designed to cover most business activities. If you work from home or run a business from your residence, be sure to review your policy to understand your coverage limits.
Finally, keep in mind that your insurance policy will have “dollar limits” on certain types of belongings, such as silverware, guns, jewelry, watches, furs, and computers. If you have valuable possessions, you may want to consider additional coverage to ensure adequate protection.
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Frequently asked questions
No, homeowners insurance isn't required by law in Montana, but your mortgage company will likely require it for you to get a loan.
The average cost of homeowners insurance in Montana varies according to different sources. According to a 2020 report by the National Association of Insurance Commissioners (NAIC), the average premium for home insurance coverage in Montana is $1,347 per year, which is close to the national average of $1,311 per year. However, insurance costs in most states have changed since then. Bankrate reports the average annual home insurance premium in Montana to be $2,418, while NerdWallet reports it to be $2,605 per year.
Homeowners insurance in Montana typically covers damage sustained by your home and belongings in the event of a fire, lightning, smoke, theft, vandalism, water, wind, and more. It also covers detached structures such as fences and sheds. However, it usually does not cover damage caused by floods and sometimes wind and hail, for which you may need separate insurance.
Some of the best homeowners insurance companies in Montana include State Farm, Farmers Insurance, and Liberty Mutual. State Farm offers extended replacement cost coverage for homes and personal property, water backup protection, and highly-rated customer service. Farmers Insurance offers a variety of savings opportunities for eligible customers. Liberty Mutual offers customized homeowners insurance coverage to fit your specific situation.
The cost of homeowners insurance in Montana can depend on various factors, including the value and age of your home, the coverage you select, your claims history, and the condition of your home.
