The homeowners forms (HO-2, HO-3, HO-4, HO-5, HO-6, HO-8), Coverages A through F, special limits, and the standard exclusions are covered in the national guide. Alaska doesn't rewrite the form. The state questions concern what an insurer may do to a homeowners policyholder: when it can cancel or nonrenew, how it may value a loss, how it may use credit, and which people it may not penalize. Those rules are in AS 21.36 and AS 21.60.

What counts as personal insurance

Alaska's cancellation and credit statutes apply to personal insurance (AS 21.36.310(4); AS 21.36.460(i)(7)). That includes:

• private passenger auto
• homeowners, including mobile home, condominium unit owner, and renters coverage
• dwelling fire policies and residential earthquake coverage
• personal liability and theft
• personal inland marine
• personal watercraft, snowmobile, and recreational vehicle policies
• personal umbrella policies

Cancellation

During the first 60 days of a new (non-renewal) policy, the insurer may cancel for any lawful reason with proper notice. After that, or on any renewal, a homeowners or other non-auto personal policy may be cancelled mid-term only for these reasons (AS 21.36.210(f)):

1. nonpayment of premium
2. conviction of a crime that increases the hazard insured against
3. fraud or material misrepresentation in obtaining the policy or pursuing a claim
4. gross negligence that substantially increases the hazards
5. physical changes that make the property uninsurable
6. the property has been entirely abandoned

An insurer's business decision, such as a newly approved rate increase, is not on the list. When the reason is abandonment, the insurer must also notify any lender on file.

Notice to an insured under 70 (AS 21.36.220):

Further notice rules:

• An insured 70 or older may name a designee who receives a copy of any cancellation notice. The insurer must remind the insured of this right every year.
• The notice must state the reason, or come with a statement of it.
• Notices go by first-class mail with a certificate of mailing, or electronically with confirmation of receipt (AS 21.36.260).
• When the insurer cancels, unearned premium is refunded pro rata. For most reasons it is refunded before the cancellation takes effect (AS 21.36.220(c), .255).

Nonrenewal and renewal changes

• Nonrenewal notice is due at least 45 days before expiration. Nonrenewal may take effect only on the annual anniversary (AS 21.36.240).
• If the insurer fails to give that notice, the policy continues until proper notice is given.
• A policy written for more than one year, or with no fixed end date, is treated as written for successive one-year terms (AS 21.36.290).
• No notice is required when the insured fails to pay the renewal premium, or when the insurer offered to renew.
• An offer to place the policy with an affiliated insurer is not a nonrenewal.
• An insurer may not nonrenew a homeowners policy based solely on the earliest claim in the prior three years if that claim arose from a third party's criminal act (AS 21.36.240(b)).
• If the renewal premium rises more than 10% for reasons other than added coverage or exposure, or coverage is materially reduced without the insured's request, the insured and agent get 45 days' notice (AS 21.36.235).

Loss valuation

• No depreciation of labor. In a residential property policy, the insurer may not depreciate the cost of labor when valuing a loss. The only exception is an optional stand-alone endorsement that comes with a proportionate premium reduction. Violating this rule is an unfair claim settlement practice (AS 21.60.030; AS 21.36.125(a)(18)).
• Replacement cost coverage, which pays repair or replacement without deducting depreciation, is permitted by special provision or endorsement (AS 21.60.020). It is an exception to the over-insurance rule.
• Over-insurance. Knowingly writing coverage above the property's fair value (replacement cost less depreciation) is prohibited (AS 21.60.010).

Credit-based insurance scores

Under AS 21.36.460-.461:

• Insurers that use credit information must disclose it at application and at renewal.
• Credit may be used to cancel, nonrenew, or rate a policy only together with other substantive underwriting factors, never alone.
• An adverse action notice must list the significant credit factors and tell the consumer about a free credit report.
• A consumer whose credit was hurt by an extraordinary life circumstance can ask for a reasonable exception within 60 days of the notice. Examples are a catastrophe, serious illness, the death of a spouse, child, or parent, divorce, identity theft, involuntary job loss, and military deployment.

Protected status

An insurer may not refuse, cancel, limit, deny a claim on, or raise the premium of a policy solely because the person was a victim of domestic violence or provides services to victims (AS 21.36.430).

Coverage gaps Alaska homeowners ask about

• Standard homeowners forms exclude earth movement and flood.
• Earthquake coverage is added by endorsement or a separate policy.
• Flood coverage comes from the National Flood Insurance Program or a private flood policy.
• Snowmobiles and other recreational vehicles used off premises need their own policy or endorsement.

Common exam traps

• After 60 days, an Alaska homeowners policy can be cancelled only for the six listed reasons.
• Notice periods are 30/20/10 days; nonrenewal notice is 45 days.
• Labor can't be depreciated without the optional premium-reducing endorsement.
• Credit alone can't justify a cancellation or nonrenewal.
• A third party's crime can't be the sole basis to nonrenew on the earliest claim in three years.