Best cheap homeowners insurance in Huntsville
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To help residents find the cheapest home insurance in Huntsville, Alabama, Bankrate’s insurance editorial team analyzed rates from the largest insurers by market share. Huntsville homeowners pay an average of $1,532 annually for $250K in dwelling coverage, or about $128 a month. We also looked at available coverage options, customer reviews, discounts and more to see which companies offered the best protection for the lowest price. Our research revealed USAA, State Farm, Nationwide, Encompass and Travelers offer the best cheap home insurance in Huntsville.
Best cheap home insurance companies in Huntsville
Based on data from Quadrant Information Services, USAA, State Farm and Nationwide are among the best cheap homeowners insurance companies in Huntsville. In choosing providers, Bankrate’s insurance editorial team, which includes licensed agents, considered each insurer’s customer satisfaction score from J.D. Power’s 2022 Home Insurance Study and financial strength ratings from AM Best, as well as regional availability, digital tools, claims handling and policy management. Then, we assigned each provider a Bankrate score from 0.0 to 5.0.
| Home insurance company | Bankrate Score | Average annual premium for $250K dwelling coverage | J.D. Power score |
|---|---|---|---|
| USAA* | 3.7 | $773 | 884/1,000 |
| State Farm | 3.2 | $1,046 | 829/1,000 |
| Nationwide | 3.2 | $1,574 | 816/1,000 |
| Encompass | 3.2 | $1,585 | Not rated |
| Travelers | 3.3 | $1,658 | 794/1,000 |
*Not officially ranked by J.D. Power due to eligibility restrictions.
USAA
USAA’s average annual homeowners insurance premium in Huntsville is 27 percent lower than the next cheapest provider on our list. However, the company only sells policies to eligible active-duty military members, veterans and their immediate families. USAA also offers discounts tailored to the military community, as well as savings of up to 10 percent for bundling home and auto policies with them.
Learn more: USAA insurance review
State Farm
State Farm is the largest writer of homeowners insurance policies in the U.S. and may be a good option for homeowners looking for great customer service at a below-average price. The company sells policies through a network of local agencies — including nearly 30 around Huntsville — 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
Nationwide may be a good choice for homeowners looking to customize their policies. Optional endorsements include ordinance or law insurance, credit card coverage, earthquake insurance, flood insurance and water backup coverage. Nationwide also boasts several discount opportunities. Homeowners may earn savings for bundling policies, purchasing a new home or staying claims-free. However, the company received a below-average score for customer satisfaction per J.D. Power.
Learn more: Nationwide insurance review
Encompass
Although Encompass’s average rate is higher than others on our list, the company offers numerous discounts, including savings for bundling, going claims-free and installing protective devices (e.g., smoke detectors and deadlock bolts). Encompass also advertises some less-common homeowners insurance endorsements like coverage for home sharing, farming, golf carts and powered children’s toys. However, the company does not allow online claims filing, nor can you receive an online quote.
Learn more: Encompass insurance review
Travelers
Travelers’ average rate for home insurance in Huntsville is 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, too. You might save money if you bundle your home and auto policies or if you bought your home within the last 12 months. Travelers may be an appealing option to environmentally conscious homeowners, as well — having a LEED-certified house could save you up to 5 percent.
Learn more: Travelers insurance review
Home insurance coverage options in Huntsville
With a standard home insurance policy, you typically get coverage up to certain limits for your home and belongings, as well as liability to cover you to certain limits if anyone were to be injured on your property in a covered event. But Huntsville has been known to experience tornadoes and severe thunderstorms, which can cause damage to homes and property. As such, 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. Homeowners who have a mortgage may even be required to do so.
- Water backup insurance: This type of insurance coverage can also be useful after a storm. Sewer backup insurance helps pay for expenses related to covered water backups and failed sump pumps.
- Identity theft insurance: Identity theft coverage varies by insurer but may help cover associated costs, such as administrative fees, attorney’s fees and identification card replacement. Some insurance companies offer identity theft coverage as a home insurance endorsement or a standalone policy.
Home insurance discounts in Huntsville
If you are looking for cheap home insurance in Huntsville, Alabama, it might be worth your time to research each company’s available discounts. Almost every insurer offers at least a few discounts that 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 (like home and auto, for example).
- Protective device discounts: If you have smoke detectors, a sprinkler system, a burglar alarm or other safety devices, your insurance company may consider you less likely to file a claim and reward you with a discount.
- New home or new buyer: Some insurers offer a discount for purchasing a new-build home; others will offer savings if you are a first-time homeowner. You may even earn a discount if you have purchased your home within the past year, even if it’s not a new build.
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.
Frequently asked questions
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There is no single best provider for everyone. 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 companies in your area and comparing quotes from multiple providers.
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The average cost of home insurance in Huntsville is $1,532 per year. This is more than the national average of $1,428 but less than home insurance in neighboring states like Tennessee and Florida. However, your cost may vary as home insurance rates are based on a variety of personal factors like your credit history and claims history, as well as your home’s age, location and condition.
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It’s generally recommended that you have enough home insurance to rebuild your home and replace the contents inside if it is damaged or destroyed in a covered peril. Note that this amount may vary based on your home’s value and building costs in your area. Experts recommend speaking with an insurance professional to determine the amount you may need to be adequately covered.
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Local and state laws do not require Huntsville renters to purchase renters insurance. However, some leases require tenants to have it. Renters insurance is typically pretty affordable — about $179 a year, per the Insurance Information Institute — compared to other types of insurance. It can usually be bundled with your auto insurance policy, too.
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Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for ZIP codes and carriers in all 50 states and Washington, D.C. 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.
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Our 2023 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.
Like our previous Bankrate Scores, 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. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 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 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.
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