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Best homeowners insurance in Alabama for 2024
Based on our analysis, USAA, Allstate, State Farm, Auto-Owners and Cincinnati are writing the best home insurance policies in Alabama.
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What To Know First
Alabama home insurance costs a little more than the national average for a policy with $250,000 in dwelling coverage. Bankrate knows, though, that there’s often more to insurance than price. That's why our analysis of top Alabama homeowners insurance takes other metrics into account, including customer service, financial strength and digital tool availability.
Here’s we found when we researched Alabama's home insurance industry:
- Alabama home insurance costs an average of $2,085 per year, which is more than the national average of $1,759 per year.
- The best home insurance companies according to our research are:
- Best home insurance company for military-focused coverage options: USAA
- Best home insurance company for discount opportunities: Allstate
- Best home insurance company for local agencies: State Farm
- Best home insurance company for robust coverage: Auto-Owners
- Best home insurance company for low average rates: Cincinnati
- USAA and State Farm are among the cheapest homeowners insurance companies in Alabama.
On This Page
- Compare the best home insurance companies in Alabama for 2024
- Best Alabama homeowners insurance companies in detail
- Additional Alabama home insurance companies to consider
- Cheapest home insurance companies in Alabama
- Best home insurance discounts in Alabama
- How much is home insurance in Alabama?
- What does home insurance cover in Alabama?
- Additional home insurance coverage types in Alabama
- Frequently asked questions
What to know about insuring your Alabama home
It’s a good idea to research the right policy for your home to get the best coverage for you. Bankrate can help you understand the risks facing Alabama homeowners, find the right coverage and lower your premium.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, Allstate, State Farm, Auto-Owners 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 $2,085 per year, or $174 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:
Insurance company |
Bankrate Score
|
Average monthly premium | Average annual premium | |
---|---|---|---|---|
4.7
|
$62
|
$746
|
||
4.2
|
$166
|
$1,991
|
||
4.2
|
$177
|
$2,126
|
||
4.6
|
$183
|
$2,199
|
||
|
$79
|
$945
|
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
20.7K
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 $250K dwelling
$62/mo
Avg. premium for $250K dwelling
$746/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 discount opportunities
4.2
4.2
Avg. premium for $250K dwelling
$166/mo
Avg. premium for $250K dwelling
$1,991/yr
Customer satisfaction
809/1,000
-
Why Allstate made our list: Allstate has fairly high average rates, but its average premium is 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 endorsements over low premiums, Allstate may be the best home insurance company for you.
Best for local agencies
4.2
4.2
Avg. premium for $250K dwelling
$177/mo
Avg. premium for $250K dwelling
$2,126/yr
Customer satisfaction
829/1,000
-
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 robust coverage
4.6
4.6
Avg. premium for $250K dwelling
$183/mo
Avg. premium for $250K dwelling
$2,199/yr
Customer satisfaction
834/1,000
-
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 low average rates
Avg. premium for $250K dwelling
$79/mo
Avg. premium for $250K dwelling
$945/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
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
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
We looked at several aspects of each carrier in our search for the best Alabama homeowners insurance. First, we 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 the 2023 J.D. Power U.S. Home Insurance Study for customer satisfaction, the National Association of Insurance Commissioners (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.
Finding cheap home insurance in Alabama
Alabama homeowners may find it challenging to find a cheap home insurance policy that offers them the coverage they need to protect their home and other personal belongings. This is why it’s important to shop around and request quotes from a number of providers. Based on your unique circumstances, you can select the provider with the best option to fit your budget. Back to topCheapest home insurance companies in Alabama
Though challenging, there are some popular insurance providers in the state who offer cheap home insurance policies. Here are the top providers in Alabama with cheap premiums, starting with USAA as the cheapest.
Carrier | Monthly premium for $250K coverage | Annual premium for $250k coverage | Savings vs state avg. for $250k coverage |
---|---|---|---|
$62
|
$746
|
- $1,339 |
|
$79
|
$945
|
- $1,140 |
|
Centauri
|
$138
|
$1,650
|
- $435 |
$148
|
$1,780
|
- $305 |
|
$163
|
$1,961
|
- $124 |
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, using discounts wisely may be a way to save significantly on your Alabama home insurance. Most insurers have at least a few, and they might be easy to qualify for. Here are some that are commonly seen across Alabama home carriers:
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.
Understanding home insurance costs in Alabama
Alabama homeowners already pay more than the rest of the country on average for home insurance. The growing number of severe weather incidents and the resulting property damage this causes likely brings insurance providers to pass on the rising costs to policyholders. Back to topHow much is home insurance in Alabama?
The average cost of home insurance in Alabama is $2,085 per year for $250,000 in dwelling coverage. Compared to the national average of $1,759 for the same coverage, Alabama homeowners pay about 14 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 $2,028 per year and Florida’s average home insurance rate is $1,968 per year.
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.
- Smiths Station: $1,784 per year — 14 percent below state average
- Waverly: $1,790 per year — 14 percent below state average
- Cecil: $1,815 per year — 13 percent below state average
- Montgomery: $1,815 per year — 13 percent below state average
- Hope Hull: $1,816 per year — 13 percent below state average
- Irvington: $2,954 per year — 42 percent above state average
- Stapleton: $2,941 per year — 41 percent above state average
- Axis: $2,829 per year — 36 percent above state average
- Grand Bay: $2,773 per year — 33 percent above state average
- Silverhill: $2,657 per year — 27 percent above state average
*Rates are for $250,000 in dwelling coverage.
Insuring your Alabama home
While there is an increasing risk of storms and hazards in Alabama and other states, it may help to explore your coverage options to decide how you can best protect your home. Back to topWhat does home insurance cover in Alabama?
Alabama homeowners should be aware of what types of damages their policies cover, and what is excluded. Doing so will allow you to secure additional policies or endorsements to keep your property and belongings best protected. These are some examples of the common types of damages homeowners may deal with that are covered by standard home insurance policies.
- Wind and tornado damage
- Fire or lightning
- Theft and other property damage
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 third 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: Inflation is causing construction-related materials and labor costs to increase, making home replacement or reconstruction more expensive, which often leads to more expensive home insurance premiums for consumers. According to the Insurance Information Institute (Triple-I), replacement costs have increased a cumulative 45 percent over the past four years, outpacing the U.S. inflation rate.
- 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.
Frequently asked questions
How Bankrate chose the best home insurance companies in Alabama
We looked at several aspects of each carrier in our search for the best Alabama homeowners insurance. First, we 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 the 2023 J.D. Power U.S. Home Insurance Study for customer satisfaction, the National Association of Insurance Commissioners (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.