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Updated Jul 01, 2024
Based on our analysis, USAA, Allstate, State Farm, Auto-Owners and Cincinnati are writing the best home insurance policies in Alabama.
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Alabama home insurance costs a little more than the national average for a policy with $300,000 in dwelling coverage. Bankrate knows, though, that there’s often more to insurance than price. That's why our analysis of top Alabama homeowners insurance takes other metrics into account, including customer service, financial strength and digital tool availability.
Here’s we found when we researched Alabama's home insurance industry:
- Alabama home insurance costs an average of $2,745 per year, which is more than the national average of $2,230 per year.
- The best home insurance companies according to our research are:
- Best home insurance company for military-focused coverage options: USAA
- Best home insurance company for discount opportunities: Allstate
- Best home insurance company for local agencies: State Farm
- Best home insurance company for robust coverage: Auto-Owners
- Best home insurance company for low average rates: Cincinnati
- USAA and State Farm are among the cheapest homeowners insurance companies in Alabama.
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On This Page
On This Page
- Compare the best home insurance companies in Alabama for 2024
- Best Alabama homeowners insurance companies in detail
- Additional Alabama home insurance companies to consider
- Cheapest home insurance companies in Alabama
- Best home insurance discounts in Alabama
- How much is home insurance in Alabama?
- What does home insurance cover in Alabama?
- Additional home insurance coverage types in Alabama
- Frequently asked questions
- Methodology
Compare the best homeowners insurance companies in Alabama
Based on our analysis of the Alabama homeowners insurance market and data sourced from Quadrant Information Services, USAA, Allstate, State Farm, Auto-Owners and Cincinnati Insurance are among the top choices for coverage. Four of our five featured companies have average rates lower than the state average of $2,745 per year, or $229 a month. We also reviewed each company's ranking for financial stability with AM Best, as well as the customer satisfaction scores from J.D. Power's 2023 Home Insurance Study. If you’re shopping for the best home insurance in Alabama, you may want to start with quotes from these companies:
| Insurance company | Bankrate Score Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. | Average monthly premium | Average annual premium | |
|---|---|---|---|---|
USAA | 4.7 Rating: 4.7 stars out of 5 | $149 | $1,789 | |
Allstate | 4.2 Rating: 4.2 stars out of 5 | $177 | $2,129 | |
State Farm | 4.2 Rating: 4.2 stars out of 5 | $196 | $2,355 | Read ReviewArrow Right |
Auto-Owners | 4.6 Rating: 4.6 stars out of 5 | $230 | $2,755 | |
Cincinnati | $170 | $2,045 |
*Premiums are for $300K in dwelling coverage **USAA not officially ranked by J.D. Power due to eligibility restrictions
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Jul 2024
Read our full methodology
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Bankrate's trusted insurance industry expertise
The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The top 5 home insurance companies in Alabama
Best for military-focused coverage
4.7
4.7
Rating: 4.7 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
USAA ReviewGet a personalized quote
Avg. premium for $300K dwelling
$149/mo
Avg. premium for $300K dwelling
$1,789/yr
Customer satisfaction
881/1,000
Why USAA made our list:With a high Bankrate Score of 4.7, USAA tops our list of best home insurance companies in Alabama. However, coverage is only available to current and formermilitary membersand select family members, so it won’t be an option for everyone. If you do qualify, though, you may be able to take advantage of the USAA’s low average rates, excellent customer satisfaction score and coverage options tailored to the needs of military families.
Who USAA may be good for:If you are stationed at Maxwell-Gunter, Fort Rucker or any of Alabama's other military bases, USAA may be worth considering.
Pros
- Unique military-focused coverage options
- Consistently high customer satisfaction ratings
Cons
- Strict eligibility requirements
- Only available over-the-phone and online for policy and claims management
USAA is our top choice for home insurance in Alabama for those who can qualify. Part of our reasoning comes from the additional coverage options it has to tailor policies to your needs. Here are some of the endorsem*nts available:
- Water backup:Covers water damage that occurs when water or sewage backs up into the home
- Earthquake insurance:Provides homeowners with coverage for damages caused by earthquakes
- Electronics:An endorsem*nt that provides coverage for valuable electronic items like cell phones, TVs, gaming consoles and others
Alabama city USAA avg. annual premium for $300K dwelling Birmingham
USAA avg. annual premium for $300K dwelling
$1,630
Huntsville
USAA avg. annual premium for $300K dwelling
$1,756
Mobile
USAA avg. annual premium for $300K dwelling
$2,650
Montgomery
USAA avg. annual premium for $300K dwelling
$1,550
Tuscaloosa
USAA avg. annual premium for $300K dwelling
$1,554
Best for discount opportunities
4.2
4.2
Rating: 4.2 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
Allstate ReviewGet a personalized quote
Avg. premium for $300K dwelling
$177/mo
Avg. premium for $300K dwelling
$2,129/yr
Customer satisfaction
809/1,000
Why Allstate made our list:Allstate has fairly high average rates, but its average premium is still lower than the state average. Additionally, you might save with Allstate’s welcome discount if youswitch your home insurancefrom another carrier, and with the loyalty discount if you maintain your coverage. Other potential savings include buying a newly constructed home, having home security devices installed or signing up for an Allstate policy at least seven days before your current policy expires.
Who Allstate may be good for:If you value policy endorsem*nts over low premiums, Allstate may be the best home insurance company for you.
Pros
- Unique endorsem*nts not found with other carriers
- Numerous discount opportunities could help you save
Cons
- All endorsem*nts are not available in every state
- Scored below segment average for overall customer satisfaction in the J.D. Power 2023 U.S. Home Insurance Study
Homeowners with an Allstate homeowner’s insurance policy can further customize their coverage from this list of additional coverage options that can be included as policy endorsem*nts:
- Yard and garden:Increases coverage limits for yard-related items like trees or riding lawn mowers
- Musical instruments:Provides protection for valuable musical instruments like violins, guitars, or pianos
- Electronic data recovery:An endorsem*nt that covers what policyholders spend to recover lost personal data like photos or computer data
Alabama city Allstate avg. annual premium for $300K dwelling Birmingham
Allstate avg. annual premium for $300K dwelling
$1,435
Huntsville
Allstate avg. annual premium for $300K dwelling
$1,742
Mobile
Allstate avg. annual premium for $300K dwelling
$4,126
Montgomery
Allstate avg. annual premium for $300K dwelling
$1,698
Tuscaloosa
Allstate avg. annual premium for $300K dwelling
$1,299
Best for local agencies
4.2
4.2
Rating: 4.2 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
State Farm ReviewGet a personalized quote
Avg. premium for $300K dwelling
$196/mo
Avg. premium for $300K dwelling
$2,355/yr
Customer satisfaction
829/1,000
Why State Farm made our list: State Farm, the largest home insurance company in the country by market share, may be a great option for Alabama homeowners who prefer doing business with local agents. State Farm also offers an array of endorsem*nts to help you personalize your policy. The company also scored above the industry average for claims and overall satisfaction per J.D. Power.
Who State Farm may be good for:From Abbeville to Woodstock, State Farm has nearly150 officesin Alabama. No matter where you live in the state, if you wish to speak to an agent in person, you are likely to find one near your home.
Pros
- Hundreds of exclusive agencies located throughout Alabama
- Scored above industry average for customer satisfaction in J.D. Power 2023 U.S. Home Insurance Study
Cons
- May need to speak with an agent to get a full view of the company’s homeowners endorsem*nt options
- Not as many potential discounts as some competitors
Alabama homeowners can consider the following additional coverage options available from State Farm to get the coverage they need for their property.
- Identity restoration:Policyholders and their families can enjoy coverage to help protect their personal identity in the case of a breach, hack, or other incident.
- Personal articles:This endorsem*nt will extend coverage to valuable personal items like cameras, jewelry, collectibles and more.
- Farm and ranch:Covers farm-related property like structures, farm homes and more.
Alabama city State Farm avg. annual premium for $300K dwelling Birmingham
State Farm avg. annual premium for $300K dwelling
$2,373
Huntsville
State Farm avg. annual premium for $300K dwelling
$2,199
Mobile
State Farm avg. annual premium for $300K dwelling
$2,028
Montgomery
State Farm avg. annual premium for $300K dwelling
$2,124
Tuscaloosa
State Farm avg. annual premium for $300K dwelling
$1,936
Best for robust coverage
4.6
4.6
Rating: 4.6 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
Auto-Owners ReviewGet a personalized quote
Avg. premium for $300K dwelling
$230/mo
Avg. premium for $300K dwelling
$2,755/yr
Customer satisfaction
834/1,000
Why Auto-Owners made our list:If you’re looking for a policy that can be highly personalized, Auto-Owners could be the best choice. The company offers numerous endorsem*nts to broaden your coverage, including guaranteed home replacement cost (for qualifying homes),water backup coverage, equipment breakdown and home cyber protection. Although Auto-Owners' average rates are high in Alabama, the carrier does have a very low National Association of Insurance Commissioners (NAIC) Complaint Index, so it may be suitable for shoppers who value customer service.
Who Auto-Owners may be good for:This carrier may be best for homeowners who value policy customization and in-person service over digital tools.
Pros
- Robust coverage options allow for a highly-personalized policy
- Fewer overall complaints with the NAIC
Cons
- High average premiums in Alabama compared to some competitors
- Digital tools are available but not highly-rated
Auto-Owners offers a few unique endorsem*nts for coverage options that homeowners may want to consider.
- Law or ordinance change coverage:If a coding law or ordinance changes and results in the demolition or upgrade of your property, this policy will cover any construction-related costs to help you meet code.
- Identity theft expense:Offers up to $15,000 in coverage for expenses made to restore your identity after it’s been stolen.
- Equipment breakdown:Providers coverage for any equipment in your home that has an electrical or mechanical failure, including air conditioning units or other major appliances.
Alabama city Auto-Owners avg. annual premium for $300K dwelling Birmingham
Auto-Owners avg. annual premium for $300K dwelling
$2,292
Huntsville
Auto-Owners avg. annual premium for $300K dwelling
$2,536
Mobile
Auto-Owners avg. annual premium for $300K dwelling
$4,168
Montgomery
Auto-Owners avg. annual premium for $300K dwelling
$2,254
Tuscaloosa
Auto-Owners avg. annual premium for $300K dwelling
$2,545
Best for low average rates
Cincinnati ReviewGet a personalized quote
Avg. premium for $300K dwelling
$170/mo
Avg. premium for $300K dwelling
$2,045/yr
Customer satisfaction
Not rated
Why Cincinnati made our list: Cincinnati might not have the same brand recognition as other insurers on our list, but Alabama homeowners who are looking for cheap home insurance coverage may want to get a quote. The carrier has one of the lowest average premiums on our list, plus a handful of potential discounts for things like bundling, remaining claims-free and insuring a new home. Cincinnati isn’t rated by J.D. Power, though, so you may want to do additional research on customer satisfaction before buying a policy.
Who Cincinnati Insurance may be good for:For anyone looking to save money on their Alabama home insurance, getting a quote from Cincinnati may be a good idea.
Pros
- Low average premiums
- Superior financial strength rating according to AM Best
Cons
- Not rated by J.D. Power
- Quotes not available online
Homeowners in Alabama who are looking for extra protection with their home insurance policy can consider adding these endorsem*nt options:
- Identity theft:Recover up to $25,000 spent on identity restoration after your identity has been stolen.
- Personal articles:Offers coverage for personal valuable items like jewelry, cameras, antiques, musical instruments, collectibles and more.
- Personal liability:Provides personal liability protection against claims of accidental bodily injury, personal injury, or property damage.
Alabama city Cincinnati avg. annual premium for $300K dwelling Birmingham
Cincinnati avg. annual premium for $300K dwelling
$1,545
Huntsville
Cincinnati avg. annual premium for $300K dwelling
$1,548
Mobile
Cincinnati avg. annual premium for $300K dwelling
$3,777
Montgomery
Cincinnati avg. annual premium for $300K dwelling
$1,636
Tuscaloosa
Cincinnati avg. annual premium for $300K dwelling
$1,673
Additional Alabama home insurance companies to consider
Foremost
Who this may be best for
Homeowners looking for specialized coverage options
Foremost review
Foremost offers standard homeowners policies, in addition to a number of more unique home coverage options like a vacant home endorsem*nt for seasonal or vacation homes. They also have a flood insurance endorsem*nt, which could be a good fit for homeowners in Alabama. This provider is likely best for homeowners who need the specialized coverage options that Foremost Insurance provides.
Travelers
Who this may be best for
Homeowners looking for robust policy options
Travelers review
Travelers is another insurance provider that offers a wide range of options for homeowners to build personalized coverage for their unique needs. Some of the more specific endorsem*nts they have that Alabama homeowners may enjoy include extended coverage for jewelry, personal identity protection, and more. Like Foremost Insurance, Travelers may be a good fit for Alabama homeowners looking for personalized coverage options.
How Bankrate chose the best home insurance companies in Alabama
We looked at several aspects of each carrier in our search for the best Alabama homeowners insurance. First, we obtained average rates from Quadrant Information Services. Next, we analyzed each carrier’s coverage offerings, discounts and digital tools, to help you find a company that offers the financial protection you need and the functionality you may want. We also factored in third-party ratings from the 2023 J.D. Power U.S. Home Insurance Study for customer satisfaction, the National Association of Insurance Commissioners (NAIC) for complaint frequency and AM Best for financial strength.
We combined all of this research to create a proprietary Bankrate Score for each company. The Scores are on a scale of 0.0 to 5.0, with higher scores indicating a higher ranking in each category. Knowing the Bankrate Score for each company can help you quickly analyze the overall quality of that carrier’s home insurance product. This might make it easier to find the best home insurance company for you.
Cheapest home insurance companies in Alabama
Though challenging, there are some popular insurance providers in the state who offer cheap home insurance policies. Here are the top providers in Alabama with cheap premiums, starting with USAA as the cheapest.
| Carrier | Monthly premium for $300K coverage | Annual premium for $300k coverage | Savings vs state avg. for $300k coverage |
|---|---|---|---|
USAA | $149 | $1,789 | - $956 |
Cincinnati | $170 | $2,045 | - $700 |
Allstate | $177 | $2,129 | - $616 |
Centauri | $194 | $2,325 | - $420 |
State Farm | $196 | $2,355 | - $390 |
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Jul 2024
Read our full methodology
How to get cheap Alabama home insurance
Fortunately, finding the best Alabama home insurance may not mean breaking the bank. Here are several tactics to try when searching for the best cheap home insurance in Alabama:
- Gather multiple quotes: Gathering more than one quote when you are searching for the best homeowners insurance in Alabama can pay off with significant savings. Every company has its own algorithm for determining rates, so you are likely to get a range of prices when you have multiple quotes. Shopping around allows you to choose the most affordable option.
- Work on your credit rating: Individuals with high credit ratings have a demonstrated ability to pay their bills in full and on time. This means they are more likely to earn a favorable rate from insurers. Increasing your credit score over time may mean you'll pay less for your policy.
- Repair your roof: An aging or damaged roof might be the cause of many high-cost claims. If your roof is on the older side, replacing it with a new one might lower your insurance rate. If you use storm-resistant materials, you may even earn a discount from some insurers.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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Best home insurance discounts in Alabama
In addition to our strategies above, using discounts wisely may be a way to save significantly on your Alabama home insurance. Most insurers have at least a few, and they might be easy to qualify for. Here are some that are commonly seen across Alabama home carriers:
State regulations mandate carriers to provide discounts if a home's roof meets the Fortified standards established by the Insurance Institute for Business & Home Safety (IBHS).
If you are happy with your homeowners insurance company, consider using it for your vehicle insurance as well. Many carriers offer a discount if you purchase more than one policy from them. You may also be able to earn this discount if you have RV, boat or umbrella coverage with the same carrier.
Your insurance company may reward you for installing safety devices such as smoke detectors, burglar alarms or deadbolt locks. These devices make your home safer, meaning you are less likely to need to file a claim.
You may qualify for lower rates or a discount if you go for a certain amount of time without filing any claims.
Some insurers will reward you with reduced rates if you undertake renovations that help bring your home up to code or reduce the chance of a claim. This may include updates to your home's plumbing, electrical or HVAC systems.
How to save on home insurance policy renewals in Alabama
When you’re up for renewal on your homeowner’s policy, there are a few things you can do to help secure lower premiums going forward.
- Better credit: In Alabama, insurers can use your credit history when determining your premiums; if you’re able to improve your credit after you’ve taken out your policy, you may be able to have them reassess and offer you a lower premium.
- No claim history: If you’re able to avoid making claims on your policy, you may be able to get a cheaper premium when renewing your policy.
- Home renovations: If you’ve made home improvements to make your home more safe and secure, insurance companies may view it as less risky to insure and lower your premiums as a result.
- Lower coverage limits: If possible, you can lower your coverage limits to secure a lower premium; only do so if you’re still receiving adequate coverage for your property.
How much is home insurance in Alabama?
The average cost of home insurance in Alabama is $2,745 per year for $300,000 in dwelling coverage. Compared to the national average of $2,230 for the same coverage, Alabama homeowners pay about 14 percent more each year. Average rates in Alabama may be higher than the national average due to the state’s position near the coast and relatively high likelihood of being hit with landfalling hurricanes. The state is also prone to severe convective storms and tornadoes. Average home insurance costs are less in Alabama than in neighboring states, though; Mississippi homeowners pay an average of $2,820 per year and Florida’s average home insurance rate is $5,533 per year.
Alabama homeowners insurance rates by city
While the state of Alabama faces its own unique factors for home insurance premiums compared to the rest of the country, where you reside within the state can also impact your rates. Find out what home insurance rates might look like in your area compared to the rest of Alabama.
- Pelham: $1,939 per year — 29 percent below state average
- Helena: $1,944 per year — 29 percent below state average
- Alabaster: $1,977 per year — 28 percent below state average
- Chelsea: $2,017 per year — 27 percent below state average
- Leeds: $2,029 per year — 26 percent below state average
- Dauphin Island: $6,892 per year — 151 percent above state average
- Orange Beach: $6,742 per year — 146 percent above state average
- Gulf Shores: $6,332 per year — 131 percent above state average
- Coden: $6,239 per year — 127 percent above state average
- Bayou La Batre: $6,030 per year — 120 percent above state average
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Jul 2024
Read our full methodology
*Rates are for $300,000 in dwelling coverage.
What does home insurance cover in Alabama?
Alabama homeowners should be aware of what types of damages their policies cover, and what is excluded. Doing so will allow you to secure additional policies or endorsem*nts to keep your property and belongings best protected. These are some examples of the common types of damages homeowners may deal with that are covered by standard home insurance policies.
- Wind and tornado damage
- Fire or lightning
- Theft and other property damage
Additional home insurance coverage types in Alabama
If you are shopping for Alabama homeowners insurance, it may be important to understand the different types of coverage available and what is covered (and not covered) by a standard home policy. The following coverage endorsem*nts may help ensure your home is financially protected from common causes of loss in Alabama.
- Roof replacement cost: Alabama is in third place in the Insurance Information Institute's listing of top 10 states for tornadoes. That suggests that you may want to have the most robust coverage possible for roof damage. This endorsem*nt means you may file a claim for the full replacement cost of your damaged roof, rather than just its depreciated value. If you are eligible for this endorsem*nt, it may be worth considering.
- Service line coverage: Damage to service lines — like your water, gas and electric lines — is generally not covered in basic homeowners insurance policies. You may want to consider adding this type of coverage to your policy to financially protect your home from damage to your service lines.
- Flood insurance: Floods are common in many parts of Alabama, with some counties experiencing over 100 flood events in the last 30 years, according to the Federal Emergency Management Agency (FEMA). Damage caused by flooding isn’t covered by standard home insurance policies. While a few companies offer flood coverage as an endorsem*nt, you’ll generally need to buy a separate flood insurance policy from the National Flood Insurance Program (NFIP) or from a private carrier that sells flood insurance.
Related content:
Guide to flood insurancePreviously Read
Windstorm insurancePreviously Read
Fire damagePreviously Read
Common Alabama home insurance problems
Homeowners in Alabama may face some challenges when securing a homeowner’s policy, such as:
- Rising rates: Inflation is causing construction-related materials and labor costs to increase, making home replacement or reconstruction more expensive, which often leads to more expensive home insurance premiums for consumers. According to the Insurance Information Institute (Triple-I), replacement costs have increased a cumulative 45 percent over the past four years, outpacing the U.S. inflation rate.
- Higher risk: The increased rates of flooding, tornadoes and tropical storms in the state may keep homeowners in certain regions from being able to qualify for adequate coverage.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze July 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
- Coverage E, Liability: $500,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores
Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
5
Rating: 5 stars out of 5
Overall Score
Cost & ratings50%
Coverage & savings30%
Support20%
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
