Montana homeowners insurance

Montana homeowners insurance provides the financial peace of mind you need to enjoy living in the Treasure State.
Compare, shop and customize quotes from top-rated insurance carriers.

Finding affordable coverage for your Montana dream home

The real estate market is thriving in Montana, with some of the most desired properties located in Bozeman, Missoula, Helena, Billings and Great Falls. The average home is selling for $445,017, and homeowners can expect a 26% property appreciation increase in as little as a year. With home prices expected to continue rising, it’s important to find affordable Montana homeowners insurance to protect your property investment.

Risks threatening your home

Although Montana is a beautiful state, homeowners face a number of perils that could destroy or damage their homes. Mountainous terrain contributes to unexpected flooding from melting mountain snow, while open prairie and drought conditions could increase the risks of fires. In recent years, homeowners have been exposed to historic flooding, causing significant damage and loss. Heavy rains, when combined with melting snow, have the potential to flood major counties across statewide basins.

For those who live in the Western region, wildfires are a constant threat. Many of the newer housing developments are located in high-risk wildfire regions, increasing the concern of destruction and the need for comprehensive insurance. Montana is one of the more expensive states to live in than half the states in the country. Receiving a homeowners insurance quotes is a key place to start saving.

The average cost of quality Montana homeowners insurance

Insurance rates vary by insurer and take into account a number of different factors. The average rate for homeowners insurance across the state is about $1,920. According to recent data, these numbers make Montana within the top 10 most expensive places in the nation to purchase homeowners insurance. Montana residents pay about 35% more than their counterparts across the nation. Your rates will vary based on where you live, your home and several other factors.

The factors affecting insurance costs

Insurers produce rate quotes after assessing the level of risk with a buyer. High-risk factors lead to higher rates, while low-risk categories lead to more affordability with comprehensive insurance. You can use the tools offered by VIU by HUB to get an accurate estimate of how your insurance quote compares to the state average.


Where you chose to buy a home affects your insurance rates. Variables that the insurance company looks at include crime rates, natural disaster frequency, property costs and general claim volume. Some of the more expensive places to live could see average annual costs hundreds of dollars more expensive than the statewide average. Keep in mind that the value of your home and living in an expensive place has a direct impact on rates as well.

Credit score

Your credit score will impact affordability with Montana homeowners insurance. Credit ratings give an insurer a sense of your risk as an insured, with a lower score indicating a higher level of risk. There is a significant difference between rates for those with excellent ratings and those with poor credit scores. Someone with a credit score higher than 750 will get the best rates on insurance, while someone with a score below 600 could pay much more a year for insurance.

Dwelling Coverage

Homeowners insurance coverage varies by carrier, but it generally includes several common perils. There are many options from which you get to choose. A key option is whether to insure your dwelling on an Actual Cash Value or Replacement Cost basis. With Replacement Cost Coverage, your home will be repaired or replaced in line with current construction costs. Actual Cash Value will pay the current value of replacing or rebuilding your dwelling after factoring in depreciation, which is likely much less that the true cost of repair or replacement.

While Replacement Cost coverage is the more expensive form of coverage, most homeowners do not have the financial resources to pay for repairs or replacement without having this option.

Insurers utilize valuation tools to establish the potential costs of rebuilding or replacing your belongings. You can also get an estimate of this cost using the online quoting tool from VIU by HUB.

The supplemental options for Montana homeowners insurance

A standard homeowners insurance policy specifies covered perils. These are risks that a homeowner can’t fully prepare against and are serious enough to carry financial concerns. Some of the perils included in policies are:

       Hail, wind or weather-related damage.

       Fire and smoke damage.

       Vandalism or theft.

       Snow or ice damage to the roof.

       Plumbing-related water damage.

       Damage from explosions, civil disturbances or vehicles.

Unfortunately, Montana residents have increased risks related to wildfires, floods and hailstorms. As damaging as these events are, they are sometimes excluded from many homeowners policies.

Natural disaster coverage

Montana residents face natural disaster damage, and depending on where your home is located, you will see a significant difference in insurance rates and coverage options. While hail is normally covered with a standard policy, the risk of hail damage is so great that some Montana policies have limitations on the coverage. The premiums could also be higher if you live in a hail-prone area of the state.

Flooding is another leading risk in Montana, but it’s not usually covered under standard policies at all. Massive flooding is known to occur in the western area of the state near the mountains as the snow and ice begin melting. You will need to purchase supplemental flood insurance to protect from possible damage if your area floods. You can check for private flood insurers or purchase a policy from the National Flood Insurance Program.

This information is intended for general informational purposes only and is not intended to constitute legal advice.


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