The Cheapest and Best Homeowners Insurance in Birmingham
The Cheapest Home Insurance Companies in Birmingham
Typically, insurance providers in Birmingham offer the same core coverages, but at different prices. Cost is an important consideration, then, as prices can significantly vary depending on the company.
If you’re looking for a policy with $100,000 in dwelling coverage, MoneyGeek’s analysis shows these companies offer the cheapest homeowners insurance:
- Farmers: $357 per year
- Travelers: $747 per year
Conversely, if you want $2 million in dwelling coverage, these companies have the lowest rates:
- Farmers: $3,071 per year
- Allstate: $8,563 per year
USAA offers the second cheapest policy, but we did not include it here, because the company caters only to veterans and military families.
Using the table below, you can see how your premium changes depending on the dwelling coverage limit you choose.
The Cheapest Home Insurance in Birmingham, Ranked
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All quotes in this study that come with a baseline dwelling coverage of $100,000 have a personal property limit coverage of $40,000, while policies with $2 million in dwelling coverage have personal property limits of $800,000. Further, all policies in this analysis have $100,000 in liability coverage.
If you live outside of Birmingham, you can use MoneyGeek’s analysis of home insurance in Alabama to find the best and cheapest policies available to you.
The Average Cost of Homeowners Insurance in Birmingham for 2022
The average cost of homeowners insurance in Birmingham is $1,436 per year. This is equal to the state average, but lower than the national average of $2,103 per year.
Calculate the Cost of Home Insurance in Birmingham
Your home’s location is one of the many factors that determine your homeowners insurance cost. Your credit score and preferred dwelling and personal property coverage limits also affect the price of your premiums. You can compare homeowners insurance quotes across Alabama using MoneyGeek’s calculator.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Birmingham
When shopping for homeowners insurance in Birmingham, you shouldn’t base your decision entirely on cost. It’s also important to consider a company’s customer service ratings and financial stability. After all, you’ll make insurance claims during highly stressful times and you’ll want your claims processed quickly and fairly.
MoneyGeek evaluated Birmingham’s home insurance carriers, ranking them based on their affordability, user satisfaction and financial stability. Our analysis reveals the top homeowners insurance providers in the city are:
- Best Overall: USAA
- Runner-up: Farmers
USAA is our top pick in Birmingham, scoring well in terms of affordability and customer service. However, this provider is only available to current and former military members and their families.
For policyholders renting out a room or their entire home, USAA offers home-sharing coverage as an add-on. This coverage pays for expenses associated with being a landlord. The company also gives discounts to homeowners who have protective security systems in their houses, and who remain claim-free.Read MoneyGeek's USAA home Insurance Review
Farmers is MoneyGeek’s runner-up in Birmingham, and has a perfect score for affordability. All the insurer’s policies include a declining deductible feature where deductibles fall by $50 each year you hold a Farmers policy.
Farmers rewards its policyholders who don’t make claims, removing higher rates and penalties after five claim-free years. You can also add identity shield coverage, which pays for expenses if your identity is stolen. Such features are not commonly offered by other insurers.Read MoneyGeek's Farmers home Insurance Review
Cheapest Home Insurance Companies in Birmingham for Newly Constructed Homes
In Birmingham, your premiums will be cheaper if you’re insuring a newly constructed house. Houses constructed with modern materials are more resistant to damage, and if damaged, are easier and more affordable to replace.
On average, homeowners insurance in Birmingham costs $1,054 per year if you’re insuring a newly constructed home. Meanwhile, you’ll spend roughly $1,436 per year insuring a house built in 2000.
If you’re insuring a new home, MoneyGeek’s analysis shows you can find the lowest rates at:
- Farmers: $277 per year
- Travelers: $498 per year
The Cheapest Home Insurance in Birmingham for New Homes, Ranked
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Cheapest Home Insurance Companies in Birmingham if You Have a Lot of Personal Property
Your homeowners insurance policy covers your house and the personal property you keep inside it. If you want to increase your personal property coverage limit, you’ll pay higher rates.
The cost of a homeowners insurance policy in Birmingham with a $250,000 personal property limit is roughly $1,490 per year. On the other hand, you can buy a policy with a $100,000 personal property limit for around $1,436 per year.
If you want a policy with high personal limits, MoneyGeek’s research show these companies offer the cheapest options:
- Farmers: $369 per year
- Travelers: $787 per year
Cheap Companies in Birmingham for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Birmingham for High Deductibles
The deductible amount you choose has a big effect on your homeowners insurance premium. If you select a policy with a high deductible, you’ll enjoy lower monthly payments. However, you’ll pay more out of pocket if you make a claim.
A homeowners insurance policy in Birmingham with a $2,000 deductible costs around $1,282 per year. Conversely, a policy with a $1,000 deductible will cost approximately $1,436 per year.
If you want a policy with a high deductible, MoneyGeek’s analysis found these carriers offer the best prices:
- Farmers: $318 per year
- Travelers: $670 per year
The Cheapest Companies in Birmingham for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Birmingham if You Have Poor Credit
Insurance companies can use your credit score to determine your homeowners insurance rates. They may quote you higher prices if you have poor credit because you’re classified as riskier to insure.
The average cost of homeowners insurance in Birmingham if you have a poor credit score is $2,476 per year. Conversely, you’ll pay roughly $1,436 per year if you have a good credit score.
If you have poor credit, the following companies offer the cheapest policies:
- Country Financial: $1,139 per year
- Farmers: $1,695 per year
While USAA offers the second cheapest policy, we did not include the company in this listing, as its insurance products are only available to veterans and military families.
The Cheapest Companies in Birmingham for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Birmingham
If you want to get an online quote from a homeowners insurance provider in Birmingham, you should be prepared with the following information:
- Home replacement cost: This is the cost of rebuilding your house, not its market value. Insurers use this figure to determine dwelling coverage limits. You can hire a construction professional to estimate this cost.
- Personal property value: This pertains to the value of the personal items inside your house. Insurers use this value to calculate your personal property coverage limits.
- Personal information: Expect insurance providers to ask you personal questions, such as your address, insurance history and the number of people living in your house.
- Property information: When calculating homeowners insurance rates, carriers need to know your home’s construction year, size, whether safety devices are installed and other factors.
Homeowners Insurance in Birmingham Analysis: Methodology
MoneyGeek evaluated home insurance premiums across nine homeowners insurance carriers in Birmingham. The data we used was gathered in partnership with Quadrant, and the quotes collected were for a home with varying coverage levels to calculate affordability scores.
As a base profile, we used a 2,500-square-foot home that was built in 2000 with dwelling coverage of $100,000, personal property coverage of $40,000, liability coverage of $100,000 and a deductible of $1,000. We also collected quotes for homeowners with newly constructed homes, increased dwelling or personal property coverage, higher deductibles and poor credit scores. All customer satisfaction ratings in our guide came from J.D. Power surveys.
About Mark Fitzpatrick