Homeowners insurance protects your home and belongings against damage, theft and accidents. MoneyGeek ranked the top home insurance companies in Alabama so you can find the best-rated companies and affordable prices. In addition to state and company average costs, MoneyGeek’s rankings can help you find the best and cheapest coverage that fits your needs, whether you have a pool, own a luxury home or have poor credit.
The 5 Best Homeowners Insurance Companies in Alabama
Looking for the best home insurance in Alabama requires you to consider various factors. While the price is important, you also need to make sure that you get a policy that will suit your circumstances and needs. To help you decide, you may need to compare different companies, checking their coverage options, ability to pay claims and customer service.
Using various factors, such as affordability, J.D. Power customer satisfaction scores and AM Best’s financial stability rating, MoneyGeek ranked the top five companies to help you find the best homeowners insurance in Alabama.
1
USAA
Score:97
More About USAA
For active and retired military members looking for cheap home insurance in Alabama, USAA might be the best option. It has affordable prices, and policyholders have the option to bundle coverage options to save money. You can also complete most of your transactions with the company’s mobile app.
2
Farmers
Score:94
More About Farmers
If you are looking for cheap homeowners insurance in Alabama, then Farmers may be a good option. This provider also allows policyholders to customize plans. You can even increase personal property limits and adjust replacement payments. You can also enjoy convenience with their tech-savvy features, such as an online rate calculator, online bills payment, online claim application, mobile app and household inventory tool. The company also offers various discounts.
Read MoneyGeek's Farmers home Insurance Review3
Country Financial
Score:91
More About Country Financial
COUNTRY Financial offers a variety of insurance options. Generally, you can start with basic coverages and add certain financial services so that the policy is suitable for your circumstances and needs. You can add extended replacement cost, additional replacement cost, identity theft, earthquake damage, high-value items, seasonal dwellings, loss assessments, sump pump failure and mine subsidence coverages. You can also pay bills and make claims online, and take advantage of their household inventory tool.
Read MoneyGeek's Country Financial home Insurance Review4
Travelers
Score:91
More About Travelers
Travelers is a good option because you can get standard coverage while adding coverages like replacement cost, contents, Valuable Items Plus, personal articles floater, water back-up, identity fraud and green home. You can also enjoy various discounts. This carrier lets you bundle homeowners insurance in Alabama with your auto policy. Travelers also has features to pay bills and make claims online, and offers a rate calculator and mobile app.
Read MoneyGeek's Travelers home Insurance Review5
Nationwide
Score:91
More About Nationwide
Nationwide is one of the providers that has good coverage options. With their various services, you can build a policy that fits your needs. They have additional coverage options like replacement cost plus, equipment breakdown, roof replacement, earthquake and identity theft or fraud. The company also has available discounts for various policies. Policyholders get access to a rate calculator and mobile app, and you can pay bills and make claims online as well.
Read MoneyGeek's Nationwide home Insurance ReviewWhat Is the Average Cost of Homeowners Insurance in Alabama?
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home insurance is equal to the average.
The average Alabama homeowners insurance rate for a dwelling coverage baseline amount of $100,000 is $1,436. That is 31.7%, or $667, lower than the national average, which is $2,103. Insurance providers will calculate your homeowners insurance rate in Alabama depending on associated risks and other factors in your area, like crime rates, property values, weather conditions and disaster risk.
Home Insurance Calculator: Estimate the Cost of Homeowners Insurance in Alabama
The cost of your home insurance policy will depend on your individual circumstances and area-related factors. Insurance providers check the location of your property, its distance to a fire department, dwelling value, roof quality, deductibles you choose, whether you have a pool or not, your credit score and frequency of claims.
Home Insurance Calculator
State
Alabama
Dwelling Coverage
$100,000
Deductible
$500
Liability
$300,000
Personal Property
$20,000
Credit Score
Excellent
low end
on average
high end
These are annual estimates. Get a personalized quote to determine your costs.
The Cheapest Homeowners Insurance Quotes in Alabama
Homeowners can get access to cheap home insurance in Alabama since the state average is generally lower than the national average. For example, the cheapest option in the state for many homeowners is Farmers, with an average annual premium of $357 for baseline dwelling coverage, which is 75.1% lower, or around $1,079 less, than the state average.
Generally, dwelling coverage helps take care of physical repairs in case your home suffers damages due to covered perils like fire, falling objects, vandalism, explosions, hail and hurricane, among others. The dwelling coverage baseline amount in Alabama is $100,000. Compare homeowners insurance quotes to find the most appropriate policy.
Cheapest Homeowners Insurance by Dwelling Coverage
Dwelling Coverage:
$100,000
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Best Cheap Homeowners Insurance Companies for Expensive Homes
When you own a high-end residential home, you want to have the best homeowners insurance in Alabama. In MoneyGeek’s study, the most affordable option for a $2 million home is Farmers, with an average annual premium of $3,071. A similar policy can cost much more with Auto-Owners Insurance, as they offer an average premium of $117,248. If you want to get your hands on the best policy for your circumstances, you will have to compare personalized quotes. Doing this will also help you find out if you qualify for discounts.
Cheapest Homeowners Insurance Companies for High-Value Homes
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Best Homeowners Insurance Companies if You Have a Pool
If your home has a pool, then the cost of your homeowners insurance will be different from a standard policy. For example, a Farmers policy for a $250,000 house with a pool has an annual average premium of $425, which is typically the cheapest option in the state. You may also get liability coverage that will help in case someone gets injured in a pool accident.
Cheapest Homeowners Insurance for Pool Home
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Cheapest Home Insurance in Alabama if You Have Poor Credit
Your credit score is also one of the factors that insurance carriers use to estimate homeowners insurance in Alabama. Having poor credit may lead to higher annual premiums in the state. Therefore, improving your credit score can help you get cheaper rates. You can do this by paying your credit card debt and maintaining a utilization rate below 30%.
You can find policies that specifically cater to homeowners with poor credit. Your cheapest option in the state is probably COUNTRY Financial. The average annual premium for a policy for a homeowner with poor credit from this carrier is $1,139 for a dwelling coverage baseline amount of $100,000.
Cheapest Homeowners Insurance for Poor Credit
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How to Get Homeowners Insurance Quotes in Alabama
Finding the best homeowners insurance in Alabama requires you to provide insurers with basic information about yourself, such as your name, address and Social Security number. You also have to prepare pieces of information that will help insurance carriers calculate your annual premium. For instance, you will have to find out the current value of your home and everything inside it. You also need to inform providers about the age of your home, the type of home you own, the materials it is made of, its condition and the estimated cost in case it needs rebuilding. Having a security system in place or solar energy panels may have an impact on your annual premium as well. Discussing your options will help you find the coverage that is right for you.
Other Considerations for Homeowners Insurance in Alabama
Other risk factors can have an impact on the cost of home insurance in Alabama, so you may have to look into coverages for hazardous weather conditions. Make sure you know what type of natural disasters may strike in your location and how often they occur so that you’re prepared for emergencies with the appropriate coverage.
Crime rates also play a role in calculating annual premiums of home insurance policies. According to a report from the FBI, Alabama experienced around 25,399 violent crimes in 2018. In the same year, the agency recorded 137,700 property crimes in the state.
In terms of average home prices, Alabama ranks 47th in the country. The typical cost of homes in Alabama is around $138,975, making it one of the cheapest states for homeowners.
Methodology
MoneyGeek analyzed homeowners insurance premiums from 16 of the top insurance companies in Alabama that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Alabama. Quotes were gathered with an average home profile of 2,500 square feet, built in 2000, with an average dwelling coverage value of $100,000, liability coverage of $100,000 and personal property coverage of $100,000.
About the Author
sources
- AM Best. "Rating." Accessed July 27, 2020.
- Business Insider. "Here's the typical home price in every state — and what you can actually get for that money." Accessed July 27, 2020.
- FBI. "2018 Crime in the United States." Accessed July 10, 2020.
- First Street Foundation. "The First National Flood Risk Assessment Defining America’s Growing Risk." Accessed July 10, 2020.
- Flood Factor. "Find Your Home’s Flood Factor." Accessed July 10, 2020.
- Insurance information institute. "Facts + Statistics: Hail." Accessed July 10, 2020.
- Insurance information institute. "Facts + Statistics: Hurricanes." Accessed July 10, 2020.
- Insurance Information Institute. "Facts + Statistics: Wildfires." Accessed July 10, 2020.
- J.D. Power. "Homeowners’ Satisfaction with Property Claims Reaches Record High as Insurers Focus on Relationship Management, J.D. Power Finds." Accessed July 27, 2020.
- Verisk. "Wildfire Risk Analysis." Accessed July 10, 2020.