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Huntsville residents pay an average of $1,477 annually, or $123 per month, for homeowners insurance policies with $250,000 in dwelling coverage. This is above the national average of $1,383, but below the state average of $1,597.
To determine the best cheap home insurance companies in Huntsville, Alabama, Bankrate looked at some of the largest insurance companies by market share and compared average rate data provided by Quadrant Information Services. In addition to affordability, we assessed customer service, financial stability and available coverage options and discounts. Based on our analysis, USAA, State Farm and Nationwide offer some of the cheapest homeowners insurance in Huntsville.
Best cheap home insurance companies in Huntsville
Based on data provided by Quadrant Information Services, our choices for the best cheap homeowners insurance in Huntsville include USAA, State Farm and Nationwide. We also considered each company’s customer satisfaction score in J.D. Power’s 2022 Home Insurance Study and financial strength ratings from AM Best.
Using these metrics, we assigned each provider a Bankrate score from 0.0 to 5.0. We also examined carriers’ regional availability, claims handling and policy management. Bankrate also looked for insurers that offer digital tools, like online and mobile resources for policy management and claims filing.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
*Not officially ranked by J.D. Power due to eligibility restrictions.
USAA offers an average annual homeowners insurance premium in Huntsville that is significantly lower than the citywide average for $250,000 in dwelling coverage. USAA only sells policies to eligible active-duty military members, veterans and their immediate families, but if you are a member of one of those groups, USAA may offer an affordable home insurance option with discounts tailored to the needs of the military community. In addition to low rates, USAA policyholders may earn a discount of up to 10 percent for bundling their home and auto policies.
Learn more: USAA Insurance review
State Farm is the largest writer of homeowner insurance policies in the U.S., and may be a good option for homeowners looking for great customer service. The company sells policies through a network of local agents and has a robust website and mobile app which allow policyholders to report and track claims online. Although the company offers competitive average home insurance rates, it does not offer many homeowners insurance discounts compared to other carriers on this list.
Learn more: State Farm Insurance review
Nationwide may be a good choice for homeowners looking for opportunities for policy customization. Potential endorsements include ordinance or law insurance, credit card coverage, earthquake insurance, flood insurance and water backup coverage. Nationwide gives policyholders numerous potential ways to save on home insurance, including discounts for home renovation, bundling, new home purchase, smart home and staying claims-free. Nationwide did receive a below-average score in J.D. Power’s Home Insurance Study, which may indicate that some policyholders are not satisfied with the level of customer service.
Learn more: Nationwide Insurance review
Travelers’ average rate for home insurance in Huntsville is one of the highest on our list, but the insurer offers some less-common coverage options, such as additional coverage to rebuild your home with green materials. A handful of potential discounts could help reduce your premium with Travelers. You may save money by bundling your home and auto policies and may also earn a discount if you bought your home within the last 12 months. Travelers may be an appealing option to environmentally-conscious homeowners, as having a LEED-certified house may save you up to five percent.
Learn more: Travelers Insurance review
Foremost has the most expensive average home insurance premium on our list, and the provider did not make the cut in J.D. Power’s 2022 Home Insurance Study. Nonetheless, Foremost may offer a few advantages for Huntsville homeowners. For customers who are moving, between renters or renovating their homes, Foremost offers vacant home insurance, including coverage for vandalism. The provider also offers several endorsements including service line coverage and scheduled personal property.
Learn more: Foremost Insurance review
Home insurance coverage options in Huntsville
With a standard home insurance policy, you get coverage up to certain limits for your home and belongings, as well as liability to cover you to certain limits if anyone were injured on your property in a covered event. Insurers usually offer other optional coverages that may help you customize your policy. Here are some common endorsements that might be worth considering:
- Flood insurance: Like other Gulf states, Alabama is prone to tropical storms and hurricanes. Flood coverage is not included in a standard home insurance policy, so you may want to consider purchasing a flood insurance policy if you are in a flood zone or concerned about possible storm damage.
- Water backup insurance: This type of insurance coverage may also be useful after a storm. Water or sewer backup insurance provides coverage if water backs up through the sewer or your sump pump overflows in a covered event.
- Identity theft coverage: Identity theft coverage varies by insurer but may help cover costs associated with identity theft such as administration fees, attorney’s fees and identification card replacement. Some insurance companies offer identity theft coverage as an endorsement to your home insurance policy or as a standalone policy.
Home insurance discounts in Huntsville
If you are looking for cheap home insurance, it might be worth your time to research each company’s available discounts. Almost every insurer offers at least a few discounts which can make a sizable dent in your premium. Some common discounts may include:
- Bundling discounts: If you find an insurance company you like, you may be able to save money by having them handle all your insurance needs, from home to auto. If available, bundling policies is typically one of the most substantial discounts a company offers.
- Claims-free discounts: This type of discount can work in two ways. Some insurers offer the discount to new customers who have not filed a claim with a previous carrier for a specified number of years. Or, a provider might offer a claims-free discount to continuing policyholders who do not file claims during a specific period.
- Welcome and loyalty discounts: Some insurers may give you a discount just for switching to that company. Others may give you a discount for staying with the company for a certain amount of time.
- Protective device discounts: If you have smoke detectors, a sprinkler system, burglar alarm or other safety devices, your insurance company may consider you less likely to file a claim. Your insurer may reward this with a discount.
Qualifying for one or multiple discounts could be an easy way to bring down your premium. Typically, bundling is one of the most significant discounts available to policyholders. For example, Allstate customers may save up to 25 percent on insurance costs by bundling their home and auto policies.
Frequently asked questions
There is no single best home insurance company for every homeowner. The best home insurance company for you is likely the one that offers the lowest prices for the coverage you need. Other important factors may include strong customer service ratings and generous options for coverage add-ons and discounts. Most insurance professionals recommend researching insurers in your area and comparing quotes from multiple providers to find the best home insurance company for your unique needs.
The average cost of a home insurance policy with $250,000 in dwelling coverage in Huntsville is $1,477 per year. Your costs may vary as home insurance rates are based on a variety of personal factors. These may include your credit and claims history as well as your home’s age, location and condition.
Most insurance professionals recommend you have enough home insurance to rebuild your home and replace the contents insude if it were damaged or destroyed in a covered peril. Note that this amount may vary based on your home’s replacement value and building costs in your area. You might want to talk to your insurance company and consider local building costs to determine the amount you may need to be adequately covered.
Local and state laws do not require Huntsville renters to purchase renters insurance. However, some property owners require tenants to carry renters insurance as a requirement of their lease. Renters insurance is typically fairly affordable, and can usually be bundled with your auto insurance policy. Renters insurance also features personal liability coverage, which may help cover medical and legal expenses if someone sustains an injury in your rental home.
Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.