Best cheap homeowners insurance in Tuscaloosa

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The average cost of home insurance in Tuscaloosa, AL is $1,423 per year for $250,000 of dwelling coverage. It is cheaper to buy home insurance, on average, in Tuscaloosa than it is in the rest of the state, with the average cost of Alabama homeowners insurance at $1,624 per year for the same amount of coverage.

Home insurance is important for Tuscaloosa property owners. Alabama is no stranger to severe weather. It is one of the worst states for tornadoes, with 95 storms in 2019 alone. Finding the best cheap home insurance in Tuscaloosa can help protect you from financial devastation if your home is damaged or destroyed.

Best cheap home insurance companies in Tuscaloosa

Bankrate’s insurance editorial team began the search for the best cheap home insurance in Tuscaloosa, AL by gathering average premium data from Quadrant Information Services for the largest insurance companies in the state by market share. We also considered other factors, like a company’s customer satisfaction rating from J.D. Power’s 2020 U.S. Home Insurance Study as well as available coverages, discounts and policy features.

Home insurance company Average annual premium for $250k dwelling coverage J.D. Power score
USAA* $686 889 / 1,000
State Farm $1,031 829 / 1,000
Allstate $1,284 829 / 1,000
Nationwide $1,288 808 / 1,000
Auto-Owners $1,659 843 / 1,000

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

USAA

USAA provides insurance exclusively to active military members, veterans and their immediate families. It consistently receives top scores from J.D. Power for customer satisfaction, although it does not qualify for official ranking due to its eligibility restrictions. If you qualify for coverage, USAA has the lowest average home insurance premium in Tuscaloosa. Coverage options include loss of use, home-sharing and earthquake insurance. You can also save using discounts for bundling, having protective devices or being claims free.

Learn more: USAA Insurance review

State Farm

State Farm receives above-average scores for customer satisfaction and the company has a host of local agents to help you with your insurance needs. You may want to customize your coverage with a personal articles policy for your valuables and keepsakes. State Farm also offers discounts to help you save on your home insurance premium. Ask about savings for things like roofing materials and home alarm systems.

Learn more: State Farm Insurance review

Allstate

With above-average customer satisfaction, Allstate might be a great fit for new homeowners with new homebuyer and welcome discounts. You can also save money with early signing and loyalty discounts, as well as savings when you are claims-free. And Allstate does not skimp on coverage. Optional endorsements include yard and garden coverage, electronic data recovery coverage and coverage for business property, musical instruments or sports equipment.

Learn more: Allstate Insurance review

Nationwide

Nationwide has a below-average customer satisfaction score but the company offers some unique optional coverages that might make up for it. The Better Roof Replacement endorsement is particularly appealing; if your roof is damaged or destroyed by a covered loss and you have this coverage on your policy, Nationwide will repair or replace your roof with stronger, safer materials. There are several discounts, including savings for protective devices, claims-free policyholders, policyholders who have prior insurance and for living in a gated community.

Learn more: Nationwide Insurance review

Auto-Owners

Auto-Owners receives one of the best scores for customer satisfaction. The company’s average premium is higher than Tuscaloosa’s average, but the company offers several ways to save. There are discounts for purchasing multiple policies, opting for paperless billing, paying in full, and being claims free. Your home can save you money, too, if you have a water shut-off system or automatic backup generator, and you might get an extra discount if you are mortgage-free.

Learn more: Auto-Owners Insurance review

Home insurance coverage options in Tuscaloosa

Home insurance is not required in Alabama, but if you have a mortgage or other type of loan on your home, your lender will likely require that you carry enough dwelling coverage to pay off the loan balance. Even if you own your home outright, home insurance is often a smart purchase to protect your finances if your home is damaged by a covered peril. You may want to consider adding the following coverages to your insurance portfolio:

  • Flood insurance: Flood insurance is not included with a standard home insurance policy, but it may be an important purchase for some homeowners. Some private insurance companies sell flood insurance and many companies facilitate flood insurance policies through the National Flood Insurance Program (NFIP).
  • Water backup coverage: When water backs up from a sewer or drain line, the damage can be devastating. This type of water damage is relatively common in basements and crawl spaces but it can happen anywhere in your home. Water backup coverage — sometimes called sewer or drain line backup — is frequently offered as an endorsement to a homeowners insurance policy.
  • Tornado coverage: There is no specific coverage called “tornado insurance,” but you may want to talk to your agent about how your insurance policy covers tornado and wind damage. You may want to discuss your dwelling, personal property and loss of use coverages with an insurance professional so that you are prepared for the possibility of a claim if the worst happens.

Home insurance discounts in Tuscaloosa

Although home insurance rates in Tuscaloosa are lower than they are in Alabama as a whole, there are still ways to save even more. Most home insurance companies offer discounts that you might be able to use to lower your premium, and taking advantage of these discounts could help you find cheap home insurance in Tuscaloosa. Some common discounts in the area are:

  • Bundle discounts: Bundling your auto and home, condo or renters insurance can save you significantly on both policies. Some companies even offer bundling discounts for other kinds of insurance, like life or business insurance.
  • Billing discounts: You might save money with billing discounts, like signing up for paperless statements, having your payments automatically withdrawn from your account or by paying your premium in full.
  • Property discounts: You could be able to lower your insurance premium just by having certain features on your home. Home alarm systems, hail-resistant roofing and upgraded plumbing or HVAC systems sometimes qualify for savings.

Many companies will also offer loyalty or welcome discounts that can help lower the average Tuscaloosa home insurance premium. You can often review a company’s discounts online, but because discounts vary by state, talking with a licensed agent in Tuscaloosa might help you identify ways to save.

Frequently asked questions

What is the best home insurance company?

The best home insurance company is different for everyone. Your own preferences will affect which company is best for your needs. You might be looking for a company that has high customer service standards, certain coverages or a mobile app. Getting quotes from several providers might help you find a company that fits your unique situation.

How much does home insurance in Tuscaloosa cost?

The average cost of home insurance in Tuscaloosa is $1,423 per year for $250,000 of dwelling coverage, which is much cheaper than the average Alabama homeowners policy that costs $1,624 per year. However, Tuscaloosa homeowners pay more than the national average cost of home insurance, which is $1,312 per year.

How much home insurance do I need in Tuscaloosa?

If you have a mortgage or home loan, you will likely be required to carry at least enough dwelling coverage to pay off the loan if your home is destroyed. However, regardless of your mortgage status, insurance professionals often recommend that you insure your home to its full replacement value. You should also consider your liability needs. Most policies start with $100,000 in liability, but you can often increase that amount.

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
Lena Borrelli
Insurance Contributor
Lena Muhtadi Borrelli has several years of experience in writing for insurance domains such as allconnect, Healthline and Reviews.com. She previously worked for Morgan Stanley.
Edited by
Insurance Writer & Editor