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Best homeowners insurance in Alabama for 2024
Based on our analysis, USAA, Auto-Owners, Allstate, State Farm and Cincinnati offer some of the best home insurance policies in Alabama.
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare the best homeowners insurance companies in Alabama
Based on our analysis of the Alabama homeowners insurance market and data sourced from Quadrant Information Services, USAA, Auto-Owners, Allstate, State Farm and Cincinnati Insurance are among the top choices for coverage. Four of our five featured companies have average rates lower than the state average of $2,745 per year, or $229 a month. We also reviewed each company's ranking for financial stability with AM Best, as well as the customer satisfaction scores from J.D. Power's 2023 Home Insurance Study. If you’re shopping for the best home insurance in Alabama, you may want to start with quotes from these companies:
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4.7
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$149
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$1,789
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4.6
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$230
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$2,755
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4.2
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$177
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$2,129
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4.2
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$196
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$2,355
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||
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$170
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$2,045
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Bankrate's trusted insurance industry expertise
Read our full methodologyThe home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The top 5 home insurance companies in Alabama
Best for military-focused coverage
4.7
4.7
Avg. premium for $300K dwelling
$149/mo
Avg. premium for $300K dwelling
$1,789/yr
Customer satisfaction
881/1,000
-
Why USAA made our list: With a high Bankrate Score of 4.7, USAA tops our list of best home insurance companies in Alabama. However, coverage is only available to current and former military members and select family members, so it won’t be an option for everyone. If you do qualify, though, you may be able to take advantage of the USAA’s low average rates, excellent customer satisfaction score and coverage options tailored to the needs of military families.
Who USAA may be good for: If you are stationed at Maxwell-Gunter, Fort Rucker or any of Alabama's other military bases, USAA may be worth considering.
Best for robust coverage
4.6
4.6
Avg. premium for $300K dwelling
$230/mo
Avg. premium for $300K dwelling
$2,755/yr
Customer satisfaction
634/1,000
-
Why Auto-Owners made our list: If you’re looking for a policy that can be highly personalized, Auto-Owners could be the best choice. The company offers numerous endorsements to broaden your coverage, including guaranteed home replacement cost (for qualifying homes), water backup coverage, equipment breakdown and home cyber protection. Although Auto-Owners' average rates are high in Alabama, the carrier does have a very low National Association of Insurance Commissioners (NAIC) Complaint Index, so it may be suitable for shoppers who value customer service.
Who Auto-Owners may be good for: This carrier may be best for homeowners who value policy customization and in-person service over digital tools.
Best for discount opportunities
4.2
4.2
Avg. premium for $300K dwelling
$177/mo
Avg. premium for $300K dwelling
$2,129/yr
Customer satisfaction
631/1,000
-
Why Allstate made our list: Allstate’s average premium is higher than other carriers on our list but still lower than the state average. Additionally, you might save with Allstate’s welcome discount if you switch your home insurance from another carrier, and with the loyalty discount if you maintain your coverage. Other potential savings include buying a newly constructed home, having home security devices installed or signing up for an Allstate policy at least seven days before your current policy expires.
Who Allstate may be good for: If you value policy endorsement options, Allstate may be the best home insurance company for you.
Best for local agencies
4.2
4.2
Avg. premium for $300K dwelling
$196/mo
Avg. premium for $300K dwelling
$2,355/yr
Customer satisfaction
643/1,000
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Why State Farm made our list: State Farm, the largest home insurance company in the country by market share, may be a great option for Alabama homeowners who prefer doing business with local agents. State Farm also offers an array of endorsements to help you personalize your policy. The company also scored above the industry average for claims and overall satisfaction per J.D. Power.
Who State Farm may be good for: From Abbeville to Woodstock, State Farm has nearly 150 offices in Alabama. No matter where you live in the state, if you wish to speak to an agent in person, you are likely to find one near your home.
Best for low average rates
Avg. premium for $300K dwelling
$170/mo
Avg. premium for $300K dwelling
$2,045/yr
Customer satisfaction
Not rated
-
Why Cincinnati made our list: Cincinnati might not have the same brand recognition as other insurers on our list, but Alabama homeowners who are looking for cheap home insurance coverage may want to get a quote. The carrier has one of the lowest average premiums on our list, plus a handful of potential discounts for things like bundling, remaining claims-free and insuring a new home. Cincinnati isn’t rated by J.D. Power, though, so you may want to do additional research on customer satisfaction before buying a policy.
Who Cincinnati Insurance may be good for: For anyone looking to save money on their Alabama home insurance, getting a quote from Cincinnati may be a good idea.
Additional Alabama home insurance companies to consider
Foremost
Homeowners looking for specialized coverage options
Foremost offers standard homeowners policies, in addition to a number of more unique home coverage options like a vacant home endorsement for seasonal or vacation homes. They also have a flood insurance endorsement, which could be a good fit for homeowners in Alabama. This provider is likely best for homeowners who need the specialized coverage options that Foremost Insurance provides.
Travelers
Homeowners looking for robust policy options
Travelers is another insurance provider that offers a wide range of options for homeowners to build personalized coverage for their unique needs. Some of the more specific endorsements they have that Alabama homeowners may enjoy include extended coverage for jewelry, personal identity protection and more. Like Foremost Insurance, Travelers may be a good fit for Alabama homeowners looking for personalized coverage options.
How Bankrate chose the best home insurance companies in Alabama
Bankrate looked at several aspects of each carrier in our search for the best Alabama homeowners insurance. First, our editorial team of licensed agents obtained average rates from Quadrant Information Services. Next, we analyzed each carrier’s coverage offerings, discounts and digital tools, to help you find a company that offers the financial protection you need and the functionality you may want. We also factored in third-party ratings from J.D. Power for customer satisfaction, the NAIC for complaint frequency and AM Best for financial strength.
We combined all of this research to create a proprietary Bankrate Score for each company. The scores are on a scale of 0.0 to 5.0, with higher scores indicating a higher ranking in each category. Knowing the Bankrate Score for each company can help you quickly analyze the overall quality of that carrier’s home insurance product. This might make it easier to find the best home insurance company for you.
Cheapest home insurance companies in Alabama
Though challenging, there are some popular insurance providers in the state that offer cheap home insurance policies. Here are the top providers in Alabama typically offering cheap average premiums.
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$149
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$1,789
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- $956 |
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$170
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$2,045
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- $700 |
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$177
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$2,129
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- $616 |
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Centauri
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$194
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$2,325
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- $420 |
$196
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$2,355
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- $390 |
How to get cheap Alabama home insurance
Fortunately, finding the best Alabama home insurance may not mean breaking the bank. Here are several tactics to try when searching for the best cheap home insurance in Alabama:
- Gather multiple quotes: Gathering more than one quote when you are searching for the best homeowners insurance in Alabama can pay off with significant savings. Every company has its own algorithm for determining rates, so you are likely to get a range of prices when you have multiple quotes. Shopping around allows you to choose the most affordable option.
- Work on your credit rating: Individuals with high credit ratings have a demonstrated ability to pay their bills in full and on time. This means they are more likely to earn a favorable rate from insurers. Increasing your credit score over time may mean you'll pay less for your policy.
- Repair your roof: An aging or damaged roof might be the cause of many high-cost claims. If your roof is on the older side, replacing it with a new one might lower your insurance rate. If you use storm-resistant materials, you may even earn a discount from some insurers.
Best home insurance discounts in Alabama
In addition to our strategies above, take advantage of discount opportunities to save significantly on your Alabama home insurance. Most insurers offer at least a few, and it could be easy to qualify for some. The following are commonly available:
How to save on home insurance policy renewals in Alabama
When you’re up for renewal on your homeowner’s policy, there are a few things you can do to help secure lower premiums going forward.
- Better credit: In Alabama, insurers can use your credit history when determining your premiums; if you’re able to improve your credit after you’ve taken out your policy, you may be able to have them reassess and offer you a lower premium.
- No claim history: If you’re able to avoid making claims on your policy, you may be able to get a cheaper premium when renewing your policy.
- Home renovations: If you’ve made home improvements to make your home more safe and secure, insurance companies may view it as less risky to insure and lower your premiums as a result.
- Lower coverage limits: If possible, you can lower your coverage limits to secure a lower premium; only do so if you’re still receiving adequate coverage for your property.
How much is home insurance in Alabama?
The average cost of home insurance in Alabama is $2,745 per year for $300,000 in dwelling coverage. Compared to the national average of $2,285 for the same coverage, Alabama homeowners pay about 20 percent more each year. Average rates in Alabama may be higher than the national average due to the state’s position near the coast and relatively high likelihood of being hit with landfalling hurricanes. The state is also prone to severe convective storms and tornadoes. Average home insurance costs are less in Alabama than in neighboring states, though; Mississippi homeowners pay an average of $2,820 per year and Florida’s average home insurance rate is $5,527 per year.
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---|---|---|---|---|
$920
|
$1,448
|
$1,603
|
$1,918
|
|
$1,164
|
$1,681
|
$1,874
|
$2,268
|
|
$1,531
|
$2,288
|
$2,553
|
$3,072
|
|
$1,295
|
$1,955
|
$2,152
|
$2,577
|
|
$930
|
$1,613
|
$1,829
|
$2,289
|
Alabama homeowners insurance rates by city
While the state of Alabama faces its own unique factors for home insurance premiums compared to the rest of the country, where you reside within the state can also impact your rates. Find out what home insurance rates might look like in your area compared to the rest of Alabama.
- Pelham: $1,939 per year — 29 percent below state average
- Helena: $1,944 per year — 29 percent below state average
- Alabaster: $1,977 per year — 28 percent below state average
- Chelsea: $2,017 per year — 27 percent below state average
- Leeds: $2,029 per year — 26 percent below state average
- Dauphin Island: $6,892 per year — 151 percent above state average
- Orange Beach: $6,742 per year — 146 percent above state average
- Gulf Shores: $6,332 per year — 131 percent above state average
- Coden: $6,239 per year — 127 percent above state average
- Bayou La Batre: $6,030 per year — 120 percent above state average
*Rates are for $300,000 in dwelling coverage.
What does home insurance cover in Alabama?
Alabama homeowners might assume that a standard home insurance policy, called an HO-3, offers all the coverage they need. While a standard policy includes open perils coverage for your dwelling and other structures, it usually covers your personal property on a named perils basis. This means your home and other structures are covered from everything except what’s specifically excluded, while your personal property is only covered from what’s specifically named. As such, you may want to read your policy carefully to identify any gaps in coverage.
- Wind, hail and tornado damage: According to the Insurance Information Institute, these made up over 40 percent of claims in 2022. This standard coverage can be incredibly useful for homeowners living in Dixie Alley, a stretch of tornado-prone states in the Southern U.S. Note that some policies exclude windstorm coverage, so you may want to check with your insurance provider to purchase this as an endorsement or standalone policy.
- Fire or lightning: Almost 22 percent of home insurance claims in 2022 were caused by fire or lightning. Fortunately, this coverage is included in standard home insurance policies.
- Water damage and freezing: To be clear, coverage for water damage in a standard policy does not cover flooding, so if your home is at risk for flooding, you may want to purchase a separate flood policy. Water damage and freezing, however, is included in a standard policy. This covers incidents like damage from a defective appliance or frozen and burst pipes. Again, you may want to check your policy for exclusions.
Additional home insurance coverage types in Alabama
If you are shopping for Alabama homeowners insurance, it may be important to understand the different types of coverage available and what is covered (and not covered) by a standard home policy. The following coverage endorsements may help ensure your home is financially protected from common causes of loss in Alabama.
- Roof replacement cost: Alabama is in second place in the Insurance Information Institute's listing of top 10 states for tornadoes. That suggests that you may want to have the most robust coverage possible for roof damage. This endorsement means you may file a claim for the full replacement cost of your damaged roof, rather than just its depreciated value. If you are eligible for this endorsement, it may be worth considering.
- Service line coverage: Damage to service lines — like your water, gas and electric lines — is generally not covered in basic homeowners insurance policies. You may want to consider adding this type of coverage to your policy to financially protect your home from damage to your service lines.
- Flood insurance: Floods are common in many parts of Alabama, with some counties experiencing over 100 flood events in the last 30 years, according to the Federal Emergency Management Agency (FEMA). Damage caused by flooding isn’t covered by standard home insurance policies. While a few companies offer flood coverage as an endorsement, you’ll generally need to buy a separate flood insurance policy from the National Flood Insurance Program (NFIP) or from a private carrier that sells flood insurance.
Related content:
Common Alabama home insurance problems
Homeowners in Alabama may face some challenges when securing a homeowner’s policy, such as:
- Rising rates: Although inflation is easing, the increased cost of labor and construction materials remains high, in part caused by higher numbers of weather-related events and insurance claims. According to the National Association of Realtors, Alabama is projected to be the eighth-most expensive state for home insurance in 2024. This is in part because the state’s insurance losses have more than doubled in the last decade.
- Higher risk: The increased rates of flooding, tornadoes and tropical storms in the state may keep homeowners in certain regions from being able to qualify for adequate coverage. In Alabama, average home insurance premiums have increased by $557 since 2020.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze October 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage levels:
Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Additional profiles:
- Coverage A, Dwelling: $150,000, $350,000, $450,000
- Coverage B, Other Structures: $15,000, $35,000, $45,000
- Coverage C, Personal Property: $75,000, $175,000, $225,000
- Coverage D, Loss of Use: $30,000, $70,000, $90,000
- Coverage E, Liability: $500,000
- Coverage F, Medical Payments: $1,000
Bankrate Scores
Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.