The Cheapest and Best Homeowners Insurance in Montgomery
The Cheapest Home Insurance Companies in Montgomery
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.
The Cheapest Home Insurance in Montgomery, Ranked
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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.
The Average Cost of Homeowners Insurance in Montgomery for 2022
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.
Calculate the Cost of Home Insurance in Montgomery
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.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Montgomery
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.
Farmers has one of the highest ratings for affordability, as well as a high total score. It offers a homeowners insurance policy for $275, while the average premium in Montgomery is around $1,149. It also offers matching coverage and energy efficiency coverage, which are rarely offered by limited homeowners insurance companies.
With Farmers, you can avail yourself of several rare coverages and discounts for your home in Montgomery. For instance, Farmers offers matching coverage, which enables the policyholder to replace the existing undamaged property with the same materials that are used to replace covered damaged property. This ensures your home maintains a uniform appearance after any repairs.Read MoneyGeek's Farmers home Insurance Review
USAA has high ratings for customer satisfaction, as well as for financial stability. It offers a homeowners insurance policy for $927, while the average premium for home insurance in the city is $1,149. USAA also offers home rental, earthquake and other coverage.
USAA offers some distinct coverage, such as home rental, which covers you and your guests if you rent out a room or your entire house. USAA offers common discounts, such as policy bundling and claims-free discounts, but no rare discounts. All these coverages are additional coverages that you can add to your basic policy.Read MoneyGeek's USAA home Insurance Review
Cheapest Home Insurance Companies in Montgomery for Newly Constructed Homes
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
The Cheapest Home Insurance in Montgomery for New Homes, Ranked
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Cheapest Home Insurance Companies in Montgomery if You Have a Lot of Personal Property
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.
Cheap Companies in Montgomery for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Montgomery for High Deductibles
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.
The Cheapest Companies in Montgomery for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Montgomery if You Have Poor Credit
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
The Cheapest Companies in Montgomery for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Montgomery
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.
Homeowners Insurance in Montgomery Analysis: Methodology
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.
About Mark Fitzpatrick