Huntsville residents pay an average of $1,433 a year, or $119 a month, for homeowners insurance for $250,000 in dwelling coverage. This is above the national average of $1,312 but well below the average for the state of Alabama, which is $1,917.
Bankrate looked at the insurance companies writing policies in the region to determine our picks for the best cheap home insurance in Huntsville, Alabama. In addition to affordability, we assessed customer service, financial stability and available coverage options and discounts.
Best cheap home insurance companies in Huntsville
Our choices for the best cheap home insurance in Huntsville include USAA, State Farm, Nationwide, Travelers and Allstate, based on their average rates for $250,000 in dwelling coverage. We also considered each company’s customer satisfaction score in J.D. Power’s Home Insurance Study, which draws from the opinions of thousands of policyholders.
|Home insurance company||Average annual premium for $250k dwelling coverage||J.D. Power score|
*USAA is not officially ranked by J.D. Power due to eligibility restrictions.
The average annual rate for home insurance in Huntsville, Alabama, from USAA is $747, nearly $700 below the Huntsville average. USAA only sells policies to members of the military, veterans and their immediate families. However, if you are a member of one of those groups, USAA should be high on your list to consider when looking for the best cheap homeowners insurance.
USAA policies are robust, covering your dwelling and other structures and your belongings, as well as liability coverage. In addition, because of the company’s military focus, it offers insurance specially designed for this demographic, such as coverage for uniforms when you are deployed.
Learn more: USAA Insurance Review
State Farm is the largest writer of homeowner insurance policies in the U.S., and there are good reasons for its popularity. Its average rate for Huntsville residents is below the average for the region, and it offers comprehensive coverage for your home, other structures on your property and your belongings. Additional options include replacement cost coverage and coverage for expensive items such as jewelry or electronics and more.
State Farm has one of the best websites in the industry, allowing you to take care of all your insurance business online. Their informative blog can get you up to speed if you are new to the world of insurance.
Learn more: State Farm Insurance Review
Nationwide offers reasonable rates and solid coverage with a lengthy list of options that allow you to customize your policy to meet your specific needs. These include ordinance and law insurance, water backup and replacement cost plus, which adds 20% to your coverage limit if it’s needed.
Nationwide’s discount opportunities are also extensive and can save you significantly on your premium. There are eight available discounts, including bundling your homeowner insurance with Nationwide auto insurance, recent home purchase and one if you live in a gated community.
Learn more: Nationwide Insurance Review
Travelers’ average rate for home insurance in Huntsville is slightly higher than the regional average, but the company still beats the average rate for Alabama. The company’s coverage options include the basics that most standard home policies offer, including dwelling coverage and liability. It also provides some less-common coverage options, such as additional coverage to rebuild your home with green materials.
A handful of discounts could help reduce your premium with Travelers. You can save money by bundling your homeowner insurance with Travelers auto insurance and can also earn a discount if you are a recent home buyer. Keeping with its commitment to environmental awareness, having a LEED-certified house will save you up to five percent.
Learn more: Travelers Insurance Review
Allstate has a decent rating with J.D. Power, indicating a commitment to good customer service, but its average rate is the highest of all our chosen insurers. But that may not be true for your premium. The company offers eight discount options, including multi-policy, claims-free, and early signing savings that are typically easy to qualify for and could save you money on your premium.
There are other reasons to consider Allstate, too. As one of the top insurers in the country, it has the experience and breadth to offer both standard and optional coverages that help you protect your investment in your home. Optional endorsements include identity theft restoration, business property and sports equipment.
Learn more: Allstate 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 in your home. But insurers usually offer optional coverages as well that help you customize your policy. Here are some common endorsements or additional policies 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 policy if you are in a flood zone or concerned about possible storm damage.
- Water backup: This type of insurance coverage can also be useful after a storm. Water backup expands your coverage if water backs up through the sewer or your sump pump overflows.
- Replacement cost coverage: Some home insurance policies pay you for the actual cash value of your belongings — that is, what they cost minus depreciation. It costs more, but replacement cost coverage might be worth it if you need to replace your furniture or other belongings because it will replace your items with like items at today’s prices without taking depreciation into account.
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, and they can drop your premium easily if you qualify. Here are some common discounts:
- Bundling: If you find an insurance company you like, you can save money by having them handle all your insurance needs, from home to auto. Bundling policies generally saves you at least 10% off your premium.
- Responsible payer: Paying on time often earns you a discount, and there may also be one if you pay for a full year or six months of insurance in one payment.
- Welcome and loyalty: Some insurers give you a discount just for switching to that company. Others give you a discount for staying with the company for a certain amount of time.
- Protective devices: If you have smoke detectors, a sprinkler system, burglar alarm or other safety devices, you are less likely to have to make a claim on your policy. Your insurer may reward this with a discount.
If you qualify for several discounts — which is not difficult — you might make a serious dent in your premium. Typically, one of the most significant discounts comes from bundling policies with one insurance company. At Allstate, for example, the company claims you will save up to 25% off your insurance costs by bundling home with auto insurance.
Frequently asked questions
What is the best home insurance company?
No company is the best for everyone. The best home insurance company for you is probably the one that offers the lowest prices for the coverage you need, combined with good customer service and generous options for coverage and discounts. To find this company, obtain quotes from several companies we have suggested above and see which one offers you the best deal.
How much does home insurance in Huntsville cost?
The average cost of a home insurance policy with $250,000 in dwelling coverage in Huntsville is $1,433 a year. Your costs will vary and are determined based on certain factors, including your home’s age, location and condition.
How much home insurance do I need in Huntsville?
Everyone’s insurance needs differ. You will likely want to have enough home insurance so that you could rebuild your home if it were damaged or destroyed in a covered disaster. Note that this amount is based on the current cost to rebuild, not your home’s market value. You might want to talk to your insurance company and consider local building costs to determine the amount you will need to be adequately covered.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all 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.