The Best Homeowners Insurance Companies and Cheapest Quotes in Alabama for 2020

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.

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.

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State

Alabama

Dwelling Coverage

$100,000

Deductible

$500

Liability

$300,000

Personal Property

$150,000

Credit Score

Excellent

low end

on average

high end

These are annual estimates. Get a personalized quote to determine your costs.

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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

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

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

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

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.

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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.