Best cheap homeowners insurance in Mobile

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The homeownership rate for Mobile, Alabama is 54%. Homeowners insurance is not mandatory unless you carry a home mortgage. The average annual Mobile, Alabama home insurance premium is $1,942 for a $250,000 home. If you are a first-time homeowner or on a tight budget, cheap home insurance Mobile rates are vital to keeping the cost of homeownership affordable.

Best home insurance companies in Mobile

To find the best home insurance providers in Mobile from the dozens of insurance companies available, Bankrate collected home insurance quotes for a standard HO-3 policy with $250,0000 in dwelling coverage. We used factors such as cost of home insurance, customer service ratings and financial strength to narrow the list down to five companies.

Home insurance company Average annual premium for $250K dwelling J.D. Power score
USAA* $762 889/1,000
Cincinnati Financial Insurance $1,027 NR
State Farm $1,145 829/1,000
Allstate $1,198 829/1,000
Auto-Owners $1,209 843/1,000

*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions

USAA

USAA has the highest rating from J.D. Power, however it is ineligible for ranking due to its eligibility criteria. USAA only offers coverage to military personnel, veterans and their immediate families. The company does beat the other companies on our list when it comes to low prices, but due to its eligibility criteria it is not available to everyone. But one of the reasons USAA manages to provide such affordable HO-3 coverage is its membership structure featuring 13 million members.

Cincinnati Financial Insurance

CinFin breaks home insurance into three packages to take the guesswork out of buying coverage. Executive Capstone and Executive Classic are designed for higher-value homes over $500,000 or $1 million respectively. The average homeowner can choose the basic Executive home policy, which averages $1,027 per year for $250,000 dwelling.

State Farm

State Farm is transparent about its home coverage. The website has tools such as a replacement cost estimator and a library of tutorials and information on insurance. You can get a detailed quote online, including estimating the cost of scheduled property coverage. If you would rather speak to someone about the right level of coverage, there may be a State Farm office near you, or you can call and speak with a representative.

Allstate

Allstate has the most options and add-ons of all insurance carriers in Mobile. You can add coverage for items not included in an HO-3, such as business property and higher-value musical and sports equipment. Eco-conscious homeowners will appreciate the green improvement reimbursement, which pays for the replacement of covered items with eco-friendly or energy-efficient versions.

Auto-Owners

Auto-Owners originally started as a vehicle insurer but also provides business, life and home insurance. Auto-Owners has specialty coverages such as equipment breakdown, service line coverage and increased cost endorsement, which adds up to 25% to your coverage allowance if you fall short on a rebuild or repair.

Other Mobile home insurance coverages to consider

Homeowners in Mobile, Alabama have hurricanes, flooding and tornadoes to worry about. Although home insurance is not required unless you have a mortgage, having coverage is a good way to protect yourself financially if the unexpected, such as a fire, burglary or flood, happens. Coverage options that may be worth the extra cost include:

  • Flood insurance: Floods are not covered by your basic home insurance. Flood insurance is not available through all insurance carriers. If you have trouble finding affordable coverage, the U.S. government provides coverage through the FloodSmart program.
  • Personal property endorsements: An HO-3 has limits to how much coverage you get for items such as jewelry or electronics. For more expensive items, you will need to purchase a personal property endorsement for a small fee.
  • Water backup: A backed-up pipe or sewer can cause damage to walls, flooring and furniture and can be expensive to fix. Water backup insurance reimburses you for the repair so you do not have to worry about the costly bill.

Home insurance discounts in Mobile

To find the best price on Mobile, AL home insurance, start by collecting a few quotes to compare rates. Before you choose a provider, check out the discounts offered for additional savings. Some of the most significant potential discounts are:

  • Bundling: If you need car or life insurance as well as home coverage, buying all your insurance needs with one carrier can earn you a price reduction on all of them.
  • Military: Veterans, active and retired military members often receive a discount for their service to the country.
  • Claim-free: The longer you avoid filing a home insurance claim, the better the discount you may receive.
  • Deductible: Another way to save when you avoid filling homeowners insurance claims is by getting a discount on your deductible amount for every claims-free year.

Frequently asked questions

What is the best home insurance company?

The best home insurance company depends on a variety of factors. Your price will vary based on your personal information, such as the size of your home, your zip code, etc. The best home insurance company will also depend on your budget, coverage needs and available discounts.

How much does home insurance in Mobile cost?

The average annual home insurance premium in Mobile, Alabama is $1,942 for a $250,000 home.

How do I find cheap home insurance Mobile rates?

The best way to find cheap home insurance in Mobile is by shopping around and getting quotes from a few home insurance companies. You can also lower your rates by taking advantage of available discounts.

Methodology

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.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.