The Best Cheap Homeowners Insurance in Montgomery, Alabama for 2024: Quotes and Reviews

In Montgomery, because home insurers offer similar core coverages, the primary determining factor for choosing a policy should be the policy’s price.

The two cheapest home insurers in Montgomery for the average homeowner with baseline dwelling coverage requirements are:

• Farmers: $275 per year
• Allstate: $1,008 per year

Although USAA is the second cheapest insurer for homes in Montgomery, we’ve kept the company off this list, because its policies are only available to veterans and military families.

If you have an expensive home and you want $2 million in dwelling coverage, then the cheapest options are:

• Farmers: $2,430 per year
• Allstate: $8,513 per year

USAA is also the second cheapest insurer here, but since its policies are only available to veterans and military families, we did not include the company in this list.

You can use the table below to see how prices change by adjusting the dwelling coverage limits.

Homeowners insurance policies in Montgomery with a baseline dwelling coverage of $100,000 have personal property limits of $40,000 All policies with dwelling coverage of $2 million have personal property limits of $800,000. Both types offer $100,000 in liability coverage.

If you live in another Alabama city, you can also reference home insurance in Alabama.

In Montgomery, the average cost of home insurance is around $1,149 per year. This cost is lower than the state and national averages at $1,436 and $2,103 per year, respectively. If you’re insuring a home in Montgomery, you will be paying a lower premium than most U.S. homeowners.

While location is one factor in determining home insurance prices, other factors — such as the amount of coverage you buy, how much personal property coverage you need and your credit score — will also influence the cost.

You can compare home insurance quotes in Montgomery, Alabama, with MoneyGeek’s home insurance calculator.

Although price is the most important factor to consider when buying a home insurance policy, there are also other aspects to consider. If you want an insurer that provides easy claim settlement during your time of crisis, you need to pick an insurer that provides excellent customer service and is financially stable.

MoneyGeek has identified the top-rated homeowners insurers in Montgomery as:

• Best Overall: Farmers
• Runner-up: USAA

MoneyGeek ranked home insurance companies in Montgomery based on affordability, user satisfaction and financial stability. Please note that USAA only offers policies to veterans and military families.

If you want to insure your newly built home in Montgomery, your premium will be lower than that for older homes. Since newly built homes are less prone to damage, and thus claims, home insurers charge less premium for them. New construction uses modern materials, which last longer and cost less to replace. The average cost of insuring a new home in Montgomery is around $842 per year, while the average premium in the city is $1,149 per year for a home built in 2000.

The cheapest homeowners insurance in Montgomery for new homes, with $100,000 in dwelling coverage are:

• Farmers: $214 per year
• Travelers: $694 per year

Home insurance can protect you from damages to personal property. If you want to insure more personal property than the city’s average, your premium will increase. In Montgomery, the average cost of buying $250,000 in personal property coverage is $1,192 per year, versus the average yearly premium in the city, which is $1,149 for personal property coverage limit of $100,000.

The two cheapest home insurance companies in Montgomery for those who require higher personal property coverage are:

• Farmers: $284 per year
• Allstate: $1,031 per year

Although USAA provides the second cheapest policy for higher personal property coverage in Montgomery, it is only available to veterans and military families.

If you choose a higher deductible, you will likely pay a lesser premium for your home insurance. However, at the time of a claim, you’ll have to pay more out of pocket. Thus, a higher deductible can have a huge effect on your insurance premium. For a policy with a $2,000 deductible, you’ll pay an average premium of $1,025 per year, while for a policy with a $1,000 deductible, the average premium is $1,149.

The cheapest home insurance companies in Montgomery for policies with a $2,000 deductible are:

• Farmers: $245 per year
• Allstate: $921 per year

USAA is the second most affordable insurer for higher deductible policies, but only offers policies to military families and veterans.

Insurance companies in Montgomery use credit scores as a rating factor for insurance costs. If you have a poor credit score, you will pay a higher premium than someone with a good credit score. Insurance policies for homeowners with a poor credit score cost $1,977 on average, while the average premium for homeowners with good credit is around $1,149.

The two cheapest companies for homeowners with poor credit in Montgomery are:

• Farmers: $1,185 per year
• Auto-Owners Insurance Co: $1,222 per year

If you want to get home insurance quotes in Montgomery online, you will have to be ready with the following information:

• Replacement cost of your home: This is the cost to rebuild your home, not the market value of your home. It will determine your dwelling coverage limits. You should hire a building contractor or construction professional to get an estimate of your replacement cost.
• Value of personal property you want to insure: The value of your items will determine appropriate personal property coverage limits.
• Personal information: You’ll be asked for your address, information about who lives in your home, your insurance history and other details.
• Information about your house: The insurer will want to know when your house was built, how big it is, what safety devices you have and more.

MoneyGeek analyzed home insurance premiums from nine companies in Montgomery. The data and information were provided in partnership with Quadrant, and quotes were collected for a home with varying coverage levels to calculate affordability scores. The base profile for a homeowner was for a home with 2,500 square feet, built in the year 2000 with dwelling coverage of $100,000, personal property coverage of $40,000, liability coverage of $100,000, and a $1,000 deductible. Quotes were also collected for homeowners with newly constructed homes, increased dwelling or personal property coverage needs, higher deductibles and poor credit scores. We have gathered the customer satisfaction ratings from J.D. Power surveys.