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The Best Homeowners Insurance in Alabama of 2021

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    Reviews Report

    • Auto-Owners is the best home insurance company in Alabama, earning a 4.8 out of 5 Reviews.com score.
    • The cheapest home insurance company in Alabama is Cincinnati Insurance, with an average premium of $537.
    • USAA is the best Alabama home insurance for military members and for highly-rated customer service.

    Homeowners insurance in Alabama is somewhat expensive. The average annual premium for home insurance in the Heart of Dixie is $1,409, which is higher than the national average rate of $1,249. Although home insurance in Alabama is not a legal requirement, it’s a good investment, especially due to the intense weather conditions that Alabama residents can experience.

    There are plenty of home insurance companies in Alabama, but to help homeowners find the best home insurance, we did some research and compared providers based on average premiums, coverage options, discounts, third-party ratings, and financial strength scores. The companies we recommend are Auto-Owners, Cincinnati Insurance, USAA, Allstate, and State Farm.

    The 5 Best Homeowners Insurance Companies in Alabama

    • Auto-Owners: Best Overall Alabama Home Insurance
    • Cincinnati Insurance: Cheapest Home Insurance in Alabama
    • USAA: Best Alabama Home Insurance for Military Members
    • Allstate: Best Alabama Home Insurance for Optional Coverages
    • State Farm: Best Alabama Home Insurance for New Homeowners

    Compare the Best Alabama Home Insurance Companies

    Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. Average Premium* J.D. Power Customer Satisfaction** J.D. Power scores are based on surveys for customer satisfaction and product quality. AM Best AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. Standard & Poor’s Standard & Poor’s (S&P) rates creditworthiness for businesses, countries and cities that issue bonds.
    Pin Auto-Owners4.8$1,732843A++N/A
    Pin Cincinnati Financial4.25$537N/AA+A+
    Pin USAA3.8$702889A++AA+
    Pin Allstate3.8$971829A+AA-
    Pin State Farm2.8$1,550829A++AA

    Information accurate as of May 2021

    *Data provided by Coverage.com

    **J.D. Power’s 2020 Home Insurance Satisfaction Study. Based on a 1,000-point scale.

    Auto-Owners

    Best Overall Alabama Home Insurance

    Why we chose it

    Auto-Owners is highly rated by J.D. Power for overall customer satisfaction, as well as claims satisfaction, making it a great option for Alabama homeowners who are looking for a provider with great customer service.
    • 4.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,732* Average Premium Pricing data comes from our partners at Coverage.com.
    • 854** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Auto-Owners is highly rated by J.D. Power for overall customer satisfaction, as well as claims satisfaction, making it a great option for Alabama homeowners who are looking for a provider with great customer service.

    Pros

    • Excellent third-party reviews
    • Great financial strength
    • Wide variety of discounts

    Cons

    • No online quotes
    • Above-average premium costs
    • Limited online tools and resources
    Read More

    Available Discounts

    • Multi-policy
    • Payment history
    • Paperless statements
    • Protective devices
    • Automatic backup generator
    • Pay in full
    • Life multi-policy
    • Advance quote
    • Water shutoff system
    • No mortgage
    • Claims-free

    Additional Coverage

    • Guaranteed home replacement cost
    • Special personal property
    • Homeowners plus package
    • Identity theft coverage
    • Equipment breakdown
    • Law/ordinance
    • Flood insurance
    • Water back up

    More Auto-Owners Insurance Reviews

    Cincinnati Insurance

    Cheapest Alabama Home Insurance

    Why we chose it

    Based on our sample rate quotes, Cincinnati Insurance is the best cheap home insurance provider in Alabama, which is ideal for homeowners who are shopping for insurance on a limited budget.
    • 4.25 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $537 Average Premium Pricing data comes from our partners at Coverage.com.
    • N/A** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Based on our sample rate quotes, Cincinnati Insurance is the best cheap home insurance provider in Alabama, which is ideal for homeowners who are shopping for insurance on a limited budget.

    Pros

    • Cheapest premiums
    • High-value home coverage
    • Strong financial ratings

    Cons

    • No online quotes
    • Fewer discounts than competitors
    • Some coverages only available with high-value home policies
    Read More

    Available Discounts

    • Multi-policy
    • New home
    • Claims-free
    • Protective device

    Additional Coverage

    • Earthquake insurance
    • Golf cart insurance
    • Identity theft insurance
    • Family shield coverage
    • Assisted living coverage
    • Flood insurance
    • Water backup/sump pump coverage
    • Green updates coverage
    • Service line coverage
    • Equipment breakdown coverage
    • Cyber protection
    • Emergency event cancellation coverage
    • Single deductible
    • Loss prevention device coverage
    USAA

    Best for Military Members

    Why we chose it

    USAA is the best home insurance company in Alabama for active duty and retired service members, with excellent customer service, a variety of coverage options, and affordable premiums.
    • 3.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $702* Average Premium Pricing data comes from our partners at Coverage.com.
    • 889** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    USAA is the best home insurance company in Alabama for active duty and retired service members, with excellent customer service, a variety of coverage options, and affordable premiums.

    Pros

    • Great customer service
    • Competitive premiums
    • Policies include replacement cost coverage

    Cons

    • Must be affiliated with the military to get coverage
    • Not many discounts
    • Few local office branches
    Read More

    Available Discounts

    Additional Coverage

    • Home sharing insurance
    • Identity theft coverage
    • Earthquake insurance
    • Flood insurance
    • Military uniform coverage
    • Valuable personal property coverage

    More USAA Insurance Reviews

    Allstate

    Best for Optional Coverages

    Why we chose it

    Allstate offers a wide variety of optional coverage, so we recommend it for Alabama homeowners who want to customize a home insurance policy that meets their unique needs.
    • 3.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $971* Average Premium Pricing data comes from our partners at Coverage.com.
    • 829** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    Allstate offers a wide variety of optional coverage, so we recommend it for Alabama homeowners who want to customize a home insurance policy that meets their unique needs.

    Pros

    • Lots of discounts
    • Many optional coverages
    • Helpful website with several tools and resources

    Cons

    • High number of company complaints
    • More expensive premiums
    • Below-average ratings for claims satisfaction
    Read More

    Available Discounts

    • Deductible rewards
    • Claims-free
    • Multi-policy
    • Responsible payer
    • Welcome and loyalty
    • Home buyer
    • Automatic payments
    • Protective device
    • Early signing

    Additional Coverage

    • Host Advantage insurance
    • Flood insurance
    • Identity theft restoration
    • Water backup coverage
    • Scheduled personal property coverage
    • Business property coverage
    • Sports equipment coverage
    • Green improvement reimbursement
    • Yard and garden coverage
    • Electronic data recovery coverage
    • Musical instruments coverage

    More Allstate Insurance Reviews

    State Farm

    Best for New Homeowners

    Why we chose it

    State Farm has great online tools, resources, and articles, which makes it a great option for first-time home insurance buyers in Alabama that need help choosing the right type and amount of coverage for their home.
    • 2.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,550* Average Premium Pricing data comes from our partners at Coverage.com.
    • 829** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.

    Why we chose it

    State Farm has great online tools, resources, and articles, which makes it a great option for first-time home insurance buyers in Alabama that need help choosing the right type and amount of coverage for their home.

    Pros

    • Robust and user-friendly website
    • Detailed online quotes
    • Helpful tools and resources for first-time home insurance buyers

    Cons

    • Not many discounts
    • Discounts are not available in every state
    • Below-average claims satisfaction reviews
    Read More

    Available Discounts

    • Multi-policy
    • Home safety device
    • Impact-resistant roof

    Additional Coverage

    • Replacement cost coverage
    • Identity restoration coverage
    • Flood insurance
    • Water back up coverage
    • Earthquake insurance
    • Ordinance/law coverage
    • Inflation coverage
    • Personal articles coverage

    More State Farm Insurance Reviews

    *Data provided by Coverage.com

    **J.D. Power’s 2020 Home Insurance Satisfaction Study. Based on a 1,000-point scale.

    Average Cost of Home Insurance in Alabama 

    According to the Insurance Information Institute (III), the average Alabama homeowners insurance premium is $1,409 per year, which is above average. For comparison, the average annual home insurance premium in the United States is $1,249.

    Alabama also has higher home insurance rates than some neighboring states. For example, the average cost of home insurance in Georgia is $1,313 per year, and the average cost of home insurance in Missouri is $1,383 per year.

    However, it’s important to remember that home insurance quotes are personalized. You might pay more or less than the statewide average based on factors like your age, credit score, claims history, and your city and zip code. For instance, the cost of homeowners insurance in Mobile, AL, will be different than the average rate in Tuscaloosa, AL. 

    The Cheapest Homeowner Insurance Companies In Alabama

    Homeowner  Insurance CompaniesAverage Annual Premium
    Cincinnati Ins Co$537
    USAA$702
    Garrison Prop & Cas Ins Co$710
    Allstate$971
    Centauri Specialty Ins Co$1,137
    Nationwide$1,235
    Metropolitan Insurance$1,279
    Encompass$1,327
    ALFA Insurance$1,419
    Farmers Insurance $1,473
    State Farm$1,550
    LM Ins Corp$1,637
    Auto-Owners Insurance$1,732
    Country Financial$2,100
    Liberty Mut Fire Ins Co$2,526
    Foremost Insurance$2,600

    Average Homeowner Insurance Costs by Age of Home in Alabama

    Credit Rating TierAverage Annual Premium
    0-10$1,380
    10-25$1,828
    25-50$1,878
    50+$1,928
    Average Across Tiers$1,754

    Top 3 Cheapest Homeowner Insurance Companies in Alabama

    • Cincinnati Insurance Company: $537
    • USAA: $702
    • Allstate: $971

    Top 3 Most Expensive Homeowner Insurance Companies in Alabama

    • Country Financial: $2,100
    • Liberty Mutual Fire Insurance: $2,526 
    • Foremost Insurance: $2,600

    Common Home Insurance Perils in Alabama

    Alabama homeowners face a number of different perils that could potentially damage or destroy their homes. Due to the state’s location near the Gulf of Mexico, hurricanes, strong winds, storm surges, and flooding are among the most common natural disasters to be aware of.

    Data from the III shows that 51,929 homes in Alabama are at risk of severe damage from a category five storm, 40,287 homes could get damaged by a category four storm, and 27,769 homes could suffer damage from a category three storm. In the last 90 years, there have been nine major hurricanes to pass through Alabama, causing millions of dollars in damage.

    Tornadoes can also cause extensive damage to Alabama homes. Between 1950 and 2019, there have been 82 tornadoes that touched down in the state, according to the National Weather Service. Most tornadoes occur in the fall and winter months in Alabama.

    Add-on home insurance coverage in Alabama 

    Standard home insurance policies cover many of the most common losses that homeowners can face. However, home insurance policies don’t cover everything. It’s a good idea to review your policy declaration page to see exactly what is and isn’t covered.

    To fill gaps in your policy, Alabama homeowners should consider purchasing certain add-on coverages. Flood insurance is one of the most important, which is available from all of the insurance companies we reviewed. Most insurance providers sell flood insurance through the National Flood Insurance Program (NFIP), which is federally sponsored.

    Other add-on coverages to consider are valuable items coverage, which increases your policy limits for specific items like jewelry, fine art, and collections. We also recommend water backup coverage, which pays to repair broken pipes and clogged sump pumps that can cause water damage inside your home. 

    If you still need help determining how much coverage and what type of Alabama home insurance coverage you need, here are some additional resources that can help you decide:

    Alabama Home Insurance FAQ

    Methodology 

    We evaluated Alabama home insurance companies based on availability, customer satisfaction, financial stability, and coverage to determine Reviews.com score and create our best home insurance reviews. To compare home insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:

    • Coverage: The more options a home insurance company has for insurance add-ons and coverages, the higher it scores in our methodology.
    • Customer Experience: We reviewed the National Association of Insurance Commissioners’ National Complaint Index and compared each homeowner’s insurance company’s complaint rating.
    • Customer Satisfaction: With J.D. Power’s 2020 Home Insurance Satisfaction Study, we assigned a score to each company based on the rating it received.
    • Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each home insurance company’s financial stability.
    • Discounts: We reviewed and compared the number of discounts advertised on each home insurance company’s website. The more available discounts, the higher the score in this metric.

    About the Authors

    Elizabeth Rivelli

    Elizabeth Rivelli Contributing Writer

    Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.

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