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Last updated on Apr 06, 2020

The Best Montana Homeowners Insurance Company

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Montana’s average annual premiums for homeowners insurance are on the low side compared to the national average — $1,081 per year for an HO-3 policy, compared to $1,173 nationwide. That said, how much you’ll pay can vary a lot depending on your home’s size, your assets, and your address. Use our tool to find your best rates:

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Looking for the best homeowners insurance company in the state of Montana? We’ve evaluated the largest carriers available and can reveal the most competitive option out there is AAA Mountain West.

You get the perks of a national insurance company with the added personalization of a localized club. The average annual premium is competitive and it gets strong ratings for both customer service and financial strength.

We compared even more companies against this measure and also recommend American Family Insurance, USAA, Encompass, and Shelter Insurance for Montana residents.

The 5 Best Homeowners Insurance Companies in Montana 

 AAAAmerican Family InsuranceUSAAEncompass InsuranceShelter Insurance

Our reviewOur reviewOur reviewOur reviewOur review
A.M. Best Financial Strength RatingAAA++A+A+
J.D. Power Overall Customer Satisfaction Score (Relevant region)N/A808/1000878/1000N/AN/A
Online Quote Tool✓ X

Compare ratesCompare ratesCompare ratesCompare rates

Average Cost of Homeowners Insurance in Montana

The average annual premium in Montana is $1,959. However, it’s important to note that your actual amount varies greatly based on the age of your house and other factors. If it’s less than 10 years old, for example, the average premium is just $1,442.

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.

Helpful Resources for Montana Homeowners

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.

Then talk to your potential home insurance carrier to figure out what additional coverage (if any) is necessary or recommended for your home. While you obviously want to keep your annual premium as low as possible, you also want to make sure your coverage is comprehensive for possible scenarios.

Methodology

To find the best home insurance companies in Montana, we started by looking at the largest companies available in the state. From there, we evaluated customer service ratings, financial strength ratings, average annual premium costs, and available discounts. The results provide a range of options for Montana homeowners, including a reliable approach to the costs and benefits associated with each policy.

Best Montana Homeowners Insurance Companies

AAA

Pros

  • Low average annual premium
  • Large discounts on both home and auto

Cons

  • Better known for auto insurance
  • Average customer ratings

AAA home insurance is a great add-on for customers with existing AAA auto insurance policies. The company has made a strong impression over the 114 years it’s been in business; in fact, it’s accredited by the BBB with an A+ rating. Customer reviews average 3.4 stars on Consumer Affairs, but recent testimonials cite helpful customer service and fast response times to claims.

With a diverse line of business, AAA lives up to its name with an A financial rating from A.M. Best. You can get home insurance in Montana through AAA’s Mountain West group.

You can also earn up to 25% in discounts if you bundle multiple insurance policies, plus 10% off on your auto insurance plan if you also sign up for home insurance. The average annual premium is $1,070, which amounts to less than $90 per month.

American Family Insurance

Pros

  • A rating on BBB
  • Save up to 29% on auto when bundled with home insurance

Cons

  • Low online customer reviews
  • No BBB accreditation

American Family Insurance isn’t accredited by the Better Business Bureau but it does have an A rating.  Customer reviews are mixed, with the company earning just over 1-star on Consumer Affairs. On a positive note, the company has received a respectable “A” financial rating from A.M. Best.

You can save significantly on your insurance premiums when you get both home and auto insurance through American Family, up to 20% and 29%, respectively. You can also add on life insurance for more savings.

Another option to get discounts on your home insurance in Montana is to install smart home devices and a security system. As a customer, you’ll definitely appreciate the $1,133 average premium each year.

USAA

Pros

  • High financial strength rating
  • Low average annual premium

Cons

  • Only available to military members
  • Recent government action

When it comes to the claims experience, financial stability, and customer satisfaction, USAA ranks well. However, its reputation has faltered slightly in recent years due to a government action against the company. 

In 2019, USAA reached a settlement with the Consumer Financial Protection Bureau for not properly implementing stop payment requests from customer’s electronic accounts. However, USAA had the highest possible A.M. Best financial strength rating of A++, which means you don’t have to worry about them having the necessary funds to settle your claim.

USAA also boasts some great coverage options for homeowners, including liability coverage, identity theft, fire, theft, and vandalism coverages, and a broader protection against most-weather-related events. Additionally, USAA offers home sharing coverage if you want to rent out part or all of your house.

USAA’s rates are fairly affordable, with an average annual premium of just $1,043 — one of the lowest among the competition. The only downside is that USAA is exclusive to active duty service members or veterans with an honorable discharge, and their families. However, if you fall into any of these categories, USAA is definitely worth considering.

Encompass Insurance

Pros

  • A+ rating from the BBB
  • Divererse discount options

Cons

  • Limited online customer reviews
  • Average premium cost

Encompass Insurance has received an A+ rating from the Better Business Bureau as well as an A+ for its financial strength from A.M. Best. The company stands out among competitors for its robust discounts on home insurance in Montana.

For example, you can save if you haven’t had a home insurance claim in the last five years; if your home is no more than 20 years old; you’ve updated major systems in the last 10 years; and if you have protective devices like smoke alarms, a security system, and fire extinguishers. Like many other insurance companies, Encompass also gives a discount to customers who purchase multiple policies with them.  The average annual premium with Encompass is $1,326.

Shelter Insurance

Pros

  • Multiple discount programs available
  • Solid financial rating

Cons

  • Average customer service ratings
  • Higher annual premium

With an average of 3.3 star reviews on Consumer Affairs, Shelter Insurance customers have mixed feelings about the company’s service. Most complaints center around premium increases. The average annual is $1,692, which is significantly higher than other companies we evaluated. On the plus side, Shelter Insurance is financially sound, indicated by an A+ from A.M. Best.

To minimize your annual premium, see if you qualify for any of Sheleter’s home insurance discount programs. These include savings for companion policies, a protective devices credit, a claim-free discount, a new home discount, plus a heating system discount.

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
0-10$1,442
10-25$2,130
25-50$2,147
50+$2,118
Average Across Tiers$1,959

Quadrant home insurance rate data as of  12/01/2019. 

These rates are a sample set meant only for general comparison. Your own premium will vary. Learn how we tested rates for the cheapest home insurance companies in our methodology.

Top 3 Cheapest Homeowner Insurance Companies in Montana

  • USAA – $1,043
  • AAA – $1,070
  • American Family Insurance – $1,133

Top 3 Most Expensive Homeowner Insurance Companies in Montana

  • Allstate – $1,869
  • State Farm – $1,751
  • Shelter Mutual Insurance Company – $1,692

Montana homeowners may see a wide range of price quotes depending on the insurance company. Based on average annual premiums, USAA is the most affordable option at $1,043 while Allstate is the highest at $1,869. However, it’s important to remember that these are averages — you’re not guaranteed a quote as high or as low as either one. Go online or call different carriers to get a personalized quote.

Homeowners Insurance FAQ

Is homeowners insurance required in Montana?

It’s not required by Montana law, but is likely required by your lender if you need a mortgage to purchase a home.

What is the cheapest homeowners insurance in Montana?

Based on average annual premiums, USAA has the cheapest homeowners insurance in Montana.

About the Authors

Lauren Ward

Lauren Ward Contributing Writer

Lauren Ward is a personal finance writer who regularly covers consumer insurance products. Her work has appeared in a variety of online publications, including Bankrate and The Simple Dollar. She graduated from Georgetown University with a BA in Japanese.