Best Homeowners Insurance Companies In Alabama For 2024
State Farm provides the best overall home insurance in Alabama.
People in Alabama know that the weather can vary significantly between the northern and southern parts of the state due to its humid subtropical climate. The southernmost areas, closer to the Gulf Coast, experience warmer temperatures and are at risk of hurricanes, with a low chance of freezing weather.
In contrast, the northern part of Alabama sees less snow and ice but still experiences some. Residents may face issues like frozen pipes or roof damage from heavy ice or snow accumulation.
To protect against these risks, it’s important to have insurance coverage for your home and belongings. State Farm is often recommended as one of the best home insurance providers, but it’s wise to research and compare different insurers to make an informed decision.
Best Home Insurance Companies In Alabama, 2024
Compare The Best Home Insurance Companies In Alabama
| Overall Rating | Best For | A.M Best Rating | J.D Power Rating | Online Experience | Get A Quote | |
|---|---|---|---|---|---|---|
| State Farm |
|
Best Overall |
A++ |
829 |
9/10 |
Instant Quote |
| Allstate |
|
Discounts |
A++ |
816 |
9/10 |
Instant Quote |
| Chubb |
|
Cheap Rates |
A++ |
809 |
7/10 |
Instant Quote |
| Farmers |
|
Policy Perks |
A |
792 |
9/10 |
Instant Quote |
| Nationwide |
|
Best Coverage Options |
A+ |
815 |
8/10 |
Instant Quote |
Our Methodology
Our ratings, when we determine which of Alabama's home insurance carriers are the best, are based on subjective data from respected companies such as AM Best for financial strength, and J.D. Power for customer satisfaction. Additionally, we weigh good as well as bad feedback from multiple consumer websites along with our own experience.
Quotes Analyzed
Brands Reviewed
Years Of Experience
Research Hours
Reviews Of Alabama's Best Homeowners Insurance Companies
Best Overall
Key Statistics
Why We Like Them
⇅State Farm has received the highest financial rating of A++ from AM Best, indicating strong financial stability. However, the company has received mixed customer reviews online, suggesting lower customer satisfaction levels. Despite this, State Farm has a significant presence in Alabama with many local agents and offices, which can be beneficial.
Their standard home insurance policy offers coverage not commonly found with other insurers, such as reimbursement for compliance with ordinances, legal coverage, and protection against credit card fraud.
While you can start the quote process online, you’ll need to contact a local agent to finalize your policy. State Farm offers streamlined processes for premium payments, claims filing, enrolling in auto-pay and paperless billing, and provides a resource library for information about your coverage.
Benefits & Drawbacks
⇅- Many agents and offices for sales and service
- Multiple high-quality coverage options
- Highest AM Best rating ✓
- Few discounts
- Flood damage isn't included in standard coverage ✘
Best For Cheapest Coverage
Key Statistics
Why We Like Them
⇅Chubb offers affordable home insurance in Alabama, with an average policy cost of $1,045 per year compared to the national average of $1,820, making it significantly cheaper than most other insurers. Despite its lower cost, Chubb’s homeowner policies are tailored to provide ample coverage for high-value homes and other needs.
Chubb maintains a strong reputation for financial stability and superior customer service, ensuring that policyholders are not under-insured. With Chubb, you can expect lower premiums and extended replacement coverage, which means your valuable belongings can be repaired or replaced even if they are not worth as much as you originally paid for them.
Benefits & Drawbacks
⇅- Local agents and offices are numerous
- Competitive premiums
- Highest rating for financial stability and strength ✓
- Online policy quotes aren't commonly available ✘
Best For Discounts
Key Statistics
Why We Like Them
⇅Allstate offers a wide range of 11 premium discounts for homeowners, which is significantly more than the national average of 7 discounts. Many insurance analysts consider these discounts to be unique and beneficial for policyholders.
Some of Allstate’s discounts include:
- Home Buyer: Discount for recently purchased homes
- Deductible Reward: $100 off deductible upon policy signup
- Bundle: Up to 25% savings for bundling home and auto or other insurance
- Automatic Payment: Up to 5% savings with auto-pay from your checking account
- Claims Free: 5% back at renewal for no claims filed in 12 months
- Early Payment: Up to 10% discount for purchasing a new policy at least 7 days before the old one expires
- Responsible Payment: Premium discount for a good payment history
- Loyalty: Up to 10% savings when renewing with Allstate
- Claims Forgiveness: Coverage to prevent rate increases after filing a claim
- New Home: Discount for insuring a newly built home
- Protective Device: Discount for installing fire and theft protection
Allstate also offers 11 optional coverage types for home insurance, nearly twice the national average. In addition to common options like scheduled personal property or ID theft, Allstate provides unique coverage for yards and gardens. This coverage increases your limits for replacing items like riding mowers and landscaping.
Benefits & Drawbacks
⇅- Multiple number of options
- Many offices, agents and claims adjusters in Alabama
- A goodly number of discounts available ✓
- Rates might be a bit more than the average in the United States ✘
Best For Policy Perks
Key Statistics
Why We Like Them
⇅Farmers Insurance is recognized for its top-tier perks and high score in the “online experience” category. It excels in explaining the meaning of perks and discounts to both potential and current policyholders. Here are some of the home insurance perks offered by Farmers:
- Extended Dwelling Coverage: Provides additional insurance for your home’s structure
- Higher Replacement Costs: Offers higher replacement costs for personal property
- No Banned Dog List: Unlike many insurers, Farmers does not have a list of banned dog breeds
- Liability Insurance: Covers injuries and property damage to others
- Additional Living Expense Coverage: Pays for extra costs like meals and hotel bills if you can’t live in your home due to a covered issue like a tornado or fire
- Identity Shield: Offers credit monitoring and identity theft protection services
Farmers’ overall score of 4.4 out of 5 reflects its AM Best rating of A, which is considered very good.
Benefits & Drawbacks
⇅- Many Farmers agents in Alabama
- Extra living expense coverage
- ID theft and fraud coverage ✓
- Rates are a little higher than some other insurers ✘
Best Coverage Options
Key Statistics
Why We Like Them
⇅Nationwide holds an A+ Superior rating from AM Best, indicating strong financial stability. While its customer satisfaction ratings are slightly lower, they are still respectable overall, based on online reviews and ratings from policyholders. The company has numerous local offices and agents in Alabama, as well as many neighborhood offices.
Nationwide offers home insurance policies with unique coverage options not commonly found with other insurers. For instance, you may receive reimbursement for losses such as credit card fraud, legal coverage, and ordinance coverage for updated building codes.
The Better Roof Replacement option provides additional coverage for roof replacement costs due to inflation and current prices after a covered weather event.
Brand New Belongings is another valuable option, offering reimbursement for replacing your belongings at their current value. Simply purchase replacements, send the receipts to Nationwide, and receive reimbursement for the difference in cost.
Benefits & Drawbacks
⇅- Numerous high quality coverage options
- Strong AM Best rating for financial security
- Many local agents in Alabama for claims, service and sales ✓
- Zero coverage for short-term rentals such as Airbnb
- Numerous online negative reviews from policyholder ✘
Average Cost Of Home Insurance In Alabama
Cheapest Home Insurance In Alabama
| Insurer | Annual Rate |
| State Farm | $1,824 |
| Nationwide | $1,092 |
| Chubb | $1,024 |
| Farmers | $1,309 |
| Allstate | $1,344 |
| Alabama Average Rate | $1,940 |
| Auto Owners | $2,436 |
| Travelers | $2,309 |
| USAA | $1,997 |
Cheapest Cities For Homeowners Insurance In Alabama
| City | Annual Rate |
| Brook Highland | $1,480 |
| Ozark | $1,892 |
| Eufaula | $1,901 |
| Athens | $1,780 |
Home Insurance Premiums By Deductible In Alabama
| Deductible | Average Annual Rate |
| $500 | $2,516 |
| $1,000 | $1,937 |
| $1,500 | $1,248 |
| $2,000 | $1,176 |
| $5,000 | $1,031 |
Most Expensive Cities For Homeowners Insurance In Alabama
| City | Highest Rate |
| Gulf Shores | $2,698 |
| Fairhope | $2,593 |
| Daphne | $2,420 |
| Foley | $2,475 |
Home Insurance Prices By Coverage Level In Alabama
| Coverage Level | Average Annual Rate |
| $100,000 Dwelling | $1,019 |
| $200,000 Dwelling | $1,490 |
| $250,000 Dwelling | $1,845 |
| $400,000 Dwelling | $2,409 |
How to Choose the Best Home Insurance Company for You
Selecting the best home insurance provider in Alabama may require an investment of time and effort, but it’s a crucial step in protecting your most valuable asset. Most Americans consider their homes as their top asset, making adequate insurance coverage essential for long-term financial security.
Here are five steps to help you find the best policy for your needs:
- Research Home Insurance Companies: Start by researching home insurers in Alabama online. Narrow down your choices to three companies.
- Determine Your Coverage Needs: Make an informed decision about the amount of coverage you need. You may want to discuss this with an agent.
- Get Quotes: Obtain quotes for the coverage from your three selected insurers.
- Evaluate Insurers: Select your top home insurer based on reviews, ratings, coverage options, and financial standing.
- Complete the Application: Fill out the company’s application for coverage.
Many companies offer the option to get a quote and complete an application online, while others may require you to work with an agent.
Factors Affecting Home Insurance Costs in Alabama
Several factors influence the cost of home insurance in Alabama, such as:
- Location: Homes in zip codes prone to extreme weather like tornadoes, hurricanes, hail, or ice and snow generally have higher insurance premiums.
- Flood Zone Proximity: Properties near Alabama lakes, rivers, or along the Gulf Coast face higher flood and hurricane-related claim risks.
- Home Age: Older homes, typically over 30 years old, often have higher insurance rates, up to 75% more, due to current building code restrictions, rebuilding costs, and upgraded materials.
- Coverage and Deductibles: Higher home values lead to increased coverage and replacement costs, thus higher premiums. Opting for a lower deductible also raises your insurance rates, whereas a higher deductible can lower them.
- Claim History: Insurance companies often charge more to policyholders with a history of filing claims.
How to Get an Online Home Insurance Quote in Alabama
To get a homeowners insurance quote and find the best coverage for your needs, follow these three simple steps:
- Fill out the quote form: Provide information about your home’s value, contents, square footage, age, exterior composition, zip code, and any other requested details.
- Submit the form: After completing the form, submit it to receive your quotes.
- Select an insurer: Choose your preferred insurer from the quotes provided and complete your application.
Note that some homeowners insurance carriers in Alabama may not offer online quotes. In such cases, you’ll need to contact a local agent who represents these carriers.
Alabama Home Insurance Laws To Know
Alabama law dictates that insurers are to charge reasonable, fair rates that are adequate for the risks covered. State law doesn’t require you to have homeowners insurance. But, if you have a mortgage, the lender will almost certainly require that you have it.
Home Insurance Discounts in Alabama
To save on your home insurance premiums, it’s wise to inquire periodically with your homeowners agent about potential discounts you may qualify for. Here are some common discounts you might be eligible for:
- New Home: Building a new home could qualify you for a discount on your homeowners insurance.
- Bundle: Some insurers offer up to a 25% discount for bundling multiple types of insurance, such as auto and home insurance, with them.
- Early Payment: You might receive a discount by taking out a new policy at least seven days before the old one expires.
- Claims Free: Not filing a claim within 12 months could lead to a discount on your premium.
- Automatic Payment: Enrolling in auto-pay, where your premium is automatically deducted from your checking account, may earn you a discount.
- Responsible Payment: Maintaining a good payment record and paying on time could make you eligible for a discount.
The Most Affordable Areas For Homeowners Insurance In Alabama
Homeowners insurance rates in Alabama will vary to some extent by zip code. Typical rates have a range of $697 in zip code 07839, the Greendell zip code, to $1751 in Camden’s zip code of 08101. The most affordable rates by zip code in Alabama are:
| 35612 | Athens | $1,778 |
| 35976 | Guntersville | $2,041 |
| 36831 | Auburn | $1,590 |
| 36577 | Spanish Fort | $2,545 |
FAQs
Is home insurance more expensive in Alabama?
Yes, homeowners insurance in Alabama is higher than the national average rates. At $1,940 annually, Alabama’s rates are higher than most of the country. This figure is based on $250,000 in coverage on a residence, $250,000 in liability coverage, a deductible of $1,000 and a good credit rating.
How much per month is a million-dollar home insurance policy in Alabama?
Rates will vary by insurer, but two carriers with the lowest home insurance rates in Alabama are Chubb at $1,024 a year and Allstate at $1,344.
What is the average monthly cost of home insurance in Alabama?
That will depend on the home’s value, but $200,000 in dwelling coverage will average around $1,932 a year.
Sources
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