Best Homeowners Insurance in Alabama (2024)


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Auto-Owners is Alabama's overall best home insurance provider, especially for owners of new or expensive properties. We used a $100,000 dwelling coverage limit in our comparisons, but your premium may vary with a different coverage amount.

For budget-conscious homeowners, MoneyGeek also reviewed the cheapest home insurance in Alabama.

Key Takeaways

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In Alabama, Auto-Owners stands out as the best overall homeowners insurance provider, earning a perfect MoneyGeek score of 100 out of 100 for its exceptional service quality and competitive pricing, especially beneficial for high-value and new homes. State Farm ranks as the runner-up with a respectable score of 96 out of 100, offering a balanced option between cost and service.

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In Alabama, State Farm is the cheapest homeowners insurance provider, offering coverage at $1,810 per year. Meanwhile, Auto-Owners serves as a strong runner-up, offering competitive rates and impressive service quality.

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In Alabama, Auto-Owners stands out as the top homeowners insurance provider for superior customer service, earning a perfect MoneyGeek score of 100 out of 100. As a runner-up, State Farm offers commendable service with a MoneyGeek score of 80 out of 100. Prioritizing service quality ensures customer satisfaction and responsive claims handling, essential for efficient support when needed most.

Why Trust MoneyGeek? We analyzed data from the Alabama Department of Insurance and Quadrant Information Services to identify the best homeowners insurance options in the state.

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Home insurance rates in Alabama represent the latest quotes as of July 2024.

1,209,600Quotes Analyzed
 
8Companies Compared
 
11ZIP Codes

Overall Best Homeowners Insurance in Alabama

Auto-Owners offers the best home insurance in Alabama. Consider the top overall providers below:

  • Auto-Owners: MoneyGeek score of 98 out of 100 ($2,040 per year)
  • State Farm: MoneyGeek score of 93 out of 100 ($1,810 per year)

When choosing home insurance, find a provider that balances affordability and reliable service.

Company logo for Auto-Owners Insurance
Best OverallAuto-Owners Insurance
MoneyGeek Score:
98/ of 100

Overview

Auto-Owners leads with perfect scores in customer satisfaction and coverages. Its average annual premium is $2,040. The insurer offers responsible payment and paperless billing discounts, promoting timely payments and sustainability.

Best Homeowners Insurance in Alabama for Customer Service

Auto-Owners is Alabama's best home insurance choice for service quality.

  • Auto-Owners: MoneyGeek score of 100 out of 100 ($2,040 per year)
  • State Farm: MoneyGeek score of 80 out of 100 ($1,810 per year)

Prioritizing service quality ensures customer satisfaction and responsive claims handling, making a big difference when you need prompt assistance, such as after storm damage.

Company logo for Auto-Owners Insurance
Best for ServiceAuto-Owners Insurance
MoneyGeek Score:
100/ of 100

Overview

Auto-Owners scores 65 out of 65 for customer satisfaction and 30 out of 30 for coverages, driving its overall MoneyGeek score of 100.

Homeowners benefit from add-ons like guaranteed replacement cost, which covers full rebuilding costs regardless of policy limits, and personal property replacement cost, which replaces belongings at current market value without deducting for depreciation.

Best Cheap Homeowners Insurance in Alabama

Auto-Owners is the best option for the cheapest homeowners insurance in Alabama.

  • Auto-Owners: MoneyGeek score of 98 out of 100 ($2,040 per year)
  • State Farm: MoneyGeek score of 96 out of 100 ($1,810 per year)

Finding a provider that balances low premiums with reliable service starts with understanding the average cost of home insurance in Alabama.

Company logo for Auto-Owners Insurance
Best CheapAuto-Owners Insurance
MoneyGeek Score:
98/ of 100

Overview

Auto-Owners provides cost-effective home insurance, with an affordability score of 73 out of 75 and an average annual premium of $2,040.

Key benefits include discounts for bundling policies and installing home security devices. Additional coverage options include scheduled personal property for high-value items and equipment breakdown for protection against unexpected mechanical failures.

Best Homeowners Insurance in Alabama for Expensive Homes

Auto-Owners is the top choice for high-value homes in Alabama. Here are the best options for $1 million dwelling coverage:

  • Auto-Owners: MoneyGeek score of 96 out of 100 ($11,190 per year)
  • State Farm: MoneyGeek score of 93 out of 100 ($8,973 per year)

Finding a provider that balances affordability and service quality, like Auto-Owners, is essential for expensive homes.

Company logo for Auto-Owners Insurance
Best for Expensive HomesAuto-Owners Insurance
MoneyGeek Score:
96/ of 100

Overview

Auto-Owners excels with an affordability score of 51 out of 55 and an average annual premium of $11,190 for luxury homes. Policyholders can save more with the protective device discount for having a home security system.

The insurer also offers coverages such as guaranteed replacement cost for full home restoration and scheduled personal property for protecting valuables like jewelry and art.

Best Homeowners Insurance in Alabama for New Homes

Auto-Owners is the top choice for new homes in Alabama. Here’s a comparison of the best homeowners insurance providers for $500,000 dwelling coverage:

  • Auto-Owners: MoneyGeek score of 100 out of 100 ($3,280 per year)
  • Nationwide: MoneyGeek score of 65 out of 100 ($4,635 per year)

With perfect affordability and customer satisfaction scores, Auto-Owners offers a strong balance between cost and service.

Company logo for Auto-Owners Insurance
Best for New HomesAuto-Owners Insurance
MoneyGeek Score:
100/ of 100

Overview

Auto-Owners is the top pick for new homeowners in Alabama, with a perfect MoneyGeek score and an average annual premium of $3,280.

Its guaranteed replacement cost coverage pays for the full rebuilding cost, regardless of policy limits. Policyholders can enjoy savings through discounts for consistent on-time payments and installing an automatic backup generator.

Best Homeowners Insurance in Alabama for Veterans

USAA is the best option for veteran homeowners insurance in Alabama.

  • USAA: MoneyGeek score of 94 out of 100 ($1,481 per year)
  • Auto-Owners: MoneyGeek score of 84 out of 100 ($2,040 per year)

USAA caters to the unique needs of military families, offering reliable coverage despite frequent relocations and deployments.

Company logo for USAA
Best for VeteransUSAA
MoneyGeek Score:
94/ of 100

Overview

USAA, exclusively serving military members and their families, achieves perfect affordability and claims satisfaction scores. The average annual premium is $1,481.

Its personal property replacement cost coverage ensures full replacement value for items. USAA provides discounts for bundling policies and installing safety devices. Smart home device users and loyal customers can also access additional savings.

How to Find the Best Homeowners Insurance in Alabama for You

The ideal home insurance companies balance strong coverage and excellent customer service with affordable premiums. Follow these steps to find the right policy for you:

  1. 1
    Assess Your Insurance Needs

    Determine how much home insurance coverage you need by evaluating your risks and property value. This helps in selecting adequate coverage.

  2. 2
    Research Various Providers

    Review each insurance company's reputation, customer service, financial stability and policy types.

  3. 3
    Compare Coverage and Costs

    Examine policies and premiums from various insurers to balance comprehensive protection and affordability. Use tools to quickly compare home insurance quotes.

  4. 4
    Understand the Policy Details

    Dive deep into each policy's particulars, including exclusions, deductibles and limits. This ensures dependable coverage and no surprises when filing a claim.

  5. 5
    Consult With an Independent Agent

    Seek guidance from an impartial insurance agent. They can help you find the best policy options and answer any questions, providing invaluable expertise for making the right choice.

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DOES HOME INSURANCE COVER FLOOD DAMAGE IN ALABAMA?

Homeowners in Alabama aren’t legally required to have flood insurance. Nevertheless, it’s highly recommended to purchase flood insurance in Alabama to safeguard homes from potential water damage in flood-prone areas.

FAQ: Homeowners Insurance in Alabama

Selecting the best homeowners insurance provider depends on your coverage needs and financial situation. To help you decide, we've answered common questions about home insurance in Alabama.

Which company is best for home insurance in Alabama?

Who has the most affordable homeowners insurance in Alabama?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.