Overall, the average cost of Montana homeowners companies is slightly below the national average. This great news is possible thanks to some of the top companies in the state, including AAA, American Family, USAA, Encompass, and Shelter. Shopping Montana homeowners insurance companies does require a look at pricing, but you should also look at the coverage offered, claims support, and the reputation of the insurer, to make a more well-rounded decision. Some of the providers that top the list in Montana also earned a spot in our national ranking of the best homeowners insurance companies.
The 5 Best Homeowners Insurance Companies in Montana
- AAA – Best for bundling with auto insurance
- American Family – Best for new homebuyers
- USAA – Best for military families
- Encompass – Most customizable
- Shelter – Best for flexible policies
Compare Montana’s top insurance companies
| Reviews.com Score | Average Price | AM Best Financial | J.D. Power | |
| AAA | N/A | $ 1,070.00 | N/A* | N/A* |
| American Family | 3.75 | $ 1,133.00 | A | 821/1000 |
| USAA | 4 | $ 1,043.00 | A++ | 889/1000 |
| Encompass | N/A | $ 1,326.00 | A+ | NA |
| Shelter | N/A | $ 1,692.00 | A | NA |
* Because AAA is a network of many local “clubs,” data varies by region
Best Montana Homeowners Insurance Companies
AAA
The American Automobile Association (AAA) is a well-recognized insurance company. The nonprofit organization may be best known for auto insurance and roadside assistance, but it’s been supporting homeowners with home insurance policies through local partners for over a century.
Best for Bundling with Auto Insurance
Why we chose it
Why we chose it
Pros
- High customer satisfaction claims ratings
- Low homeowners insurance prices
- AAA discounts for travel and other policies
Cons
- Requires AAA membership first
- You may have to buy auto insurance before you can access homeowners policies
- Home insurance is provided by a local partner.
Discounts available
- Retired member discount
- Claims-free
- Renovated home
- Hail-resistant roof
Unique features
Many of the local AAA clubs provide home systems protection to cover heating, air conditioning or water heater breakdowns.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
** Because AAA is a network of many local “clubs,” data varies by region
Further Reading on AAA:
American Family Insurance
American Family Insurance is a good choice for any type of homeowner, but especially shines for new homebuyers. The insurer’s affordable premiums and a variety of online learning resources are ideal for someone just getting started with purchasing their first home.
Best For New Homebuyers
Why we chose it
Why we chose it
Pros
- Customizable coverage options
- Good customer satisfaction ratings and 24/7 claims center
- Strong financial ratings
- Helpful digital resources for new homebuyers
Cons
- Not BBB accredited
- Limited availability
Discounts available
- Smart home discount
- Generational discount if your parents are policy holders
- Renovated home discount
Unique features
American Family’s MyAmFam App was redesigned to make managing your homeowners insurance policy easier. Besides the number of discounts available, American Family Insurance’s homeowners insurance policies are some of the most affordable in Arizona.
*J.D. Power 2020 U.S. Home Insurance Customer Satisfaction Study, based on a 1,000-point scale
Further Reading on American Family:
- American Family homeowners insurance review
- American Family renters insurance review
- American Family auto insurance review
USAA
USAA appears at the top of rating lists for its excellent customer service, comprehensive policies, and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.
Best For Military Families
Why we chose it
Why we chose it
Pros
- Outstanding customer service
- Policies tailored to military family needs
- Competitive pricing
Cons
- Only available to current and former military members and their families
- Limited discounts
Discounts available
- Save 10% if you bundle with auto
- Claims-free 10% discount
- Home security system discount
Unique features
USAA’s policies are written with service men and women in mind. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
*J.D. Power 2020 U.S. Home Insurance Customer Satisfaction Study, based on a 1,000-point scale
Further Reading on USAA:
Encompass
Encompass offers homeowners insurance in three tiers—Elite, Deluxe and Special. This tiered system allows customers to choose a coverage policy that meets their needs and fits within their budget.
Most Customizable
Why we chose it
Why we chose it
Pros
- Tiered coverage options
- Add-on coverages
Cons
- More expensive premiums
- Few discounts
Discounts available
- Claim-free discount
- Dwelling age discount
- Renovation discount
Unique features
Encompass offers added protections, including enhanced replacement cost coverage, water backup coverage, increased building costs, mortgage rate protection and more.
**Some providers don’t have enough third-party ratings to calculate a score.
Shelter Mutual Insurance
Shelter Mutual Insurance has earned average financial ratings and didn’t rank in the 2020 J.D. Power Home Insurance Study. But Shelter stands out in the crowd with its flexible home insurance policies. Shelter offers two levels of homeowners coverage. A Shelter home insurance policy provides maximum protection, while a dwelling insurance policy gives you the option to add covered perils based on your needs.
Flexible Polices
Why we chose it
Why we chose it
Pros
- Flexible coverage options
- Claims-free discount
- Inflation protection coverage
Cons
- Customer satisfaction ratings
- Average financial strength
Discounts available
- Claim-free discount
- New home discount
- Protective devices discount
Unique features
Shelter’s flexible homeowners policies enable you to choose protection against a comprehensive set of perils or only the ones you consider the greatest threat to your home. Shelter also offers a large selection of optional coverages, which can help offset the cost of fire department charges, cover fraudulent credit card charges, pay for debris removal, and much more.
**Some providers don’t have enough third-party ratings to calculate a score.
Average Cost of Homeowners Insurance in Montana
The average annual premium in Montana is $1,081. However, it’s important to note that your actual amount varies greatly based on the age of your house and other factors.
Most carriers, particularly the ones that made our top list of recommendations, offer discounts in certain situations that may mitigate the cost of your premium. The most common one for all Montana residents is for bundling multiple policies under the same company.
Home Insurance Add-Ons That Will Further Protect You
Montana residents may not need to worry much about hurricanes, but they can be at risk for floods and wildfires. Your real estate agent can help you determine whether your home is located in a flood plain or other high-risk area, necessitating additional coverage for these events.
The Cheapest Homeowner Insurance Companies in Montana
| Homeowner Insurance Companies | Average Annual Premium |
| USAA | $1,043 |
| AAA | $1,070 |
| American Family Insurance | $1,133 |
| Garrison Property & Casualty Insurance Company | $1,191 |
| Encompass | $1,326 |
| Shelter Mutual Insurance Company | $1,692 |
| State Farm | $1,751 |
| Allstate | $1,869 |
Cost of Homeowners Insurance by Age of Home
| Age of Home (years) | Average Annual Premium |
| 5 | $1,442 |
| 20 | $2,130 |
| 35 | $2,147 |
| 50 | $2,118 |
| Average Across Tiers | $1,959 |
Top 3 Cheapest Homeowners Insurance Companies in Montana
- USAA – $1,043
- AAA – $1,070
- American Family Insurance – $1,133
Top 3 Most Expensive Homeowners Insurance Companies in Montana
- Allstate – $1,869
- State Farm – $1,751
- Shelter Mutual Insurance Company – $1,692
Helpful Resources for Montana Homeowners
The government of Montana has a website with resources for parents and teachers to talk with children about emergency preparedness for different natural disasters.
Floods and wildfires are among the most common catastrophes that can impact Montana homeowners. Look at your surrounding geographic area to determine how at-risk you are for either of these natural disasters. We created a guide that can help you prepare for wildfires and an article to provide useful information in case your home is affected by a flood.
Homeowners Insurance FAQ
Is homeowners insurance required in Montana?
No, homeowners insurance is not required by state law in Montana. However, if you do still have an outstanding mortgage on your home or property, your lender probably requires you to carry insurance coverage. If you’re considering not getting coverage, ensure that’s okay with your lender before proceeding.
What is the cheapest homeowners insurance in Montana?
The actual rate you’ll pay for Montana homeowners insurance policies is heavily dependent on your home and your desired coverage needs. That being said, recent samples show that USAA, AAA, and American Family Insurance are the three least expensive homeowners policy companies in Montana.
About the Authors
Jason Lee is a seasoned writer with a passion for writing about insurance, banking, and personal finance. As a Las Vegas local and area business owner for a decade, he knows the ins and outs of the city better than anyone.
