We looked at the top 15 insurance companies in Alabama, by market share and evaluated them on customer service, average premium, and more. Our five chosen finalists — Cincinnati, USAA, Allstate, State Farm, and Auto-Owners — all deliver rock-solid policies at reasonable prices. Take a look below and you’ll see why we chose the companies we did as for the top homeowner insurance in Alabama.
The Five Best Homeowners Insurance Companies in Alabama
|Cincinnati Insurance||USAA||Allstate||State Farm||Auto-Owners|
|Our review||Our review||Our review||Our review||Our review|
|AM Best Financial Strength Rating||A+||A++||A+||A++||A++|
|J.D. Power Overall Customer Satisfaction Score (Relevant region)||NA||878/1000||814/1000||831/1000||826/1000|
|Online Quote Tool||X||✓||✓||✓||X|
|Compare rates||Compare rates||Compare rates||Compare rates|
Average Cost of Homeowners Insurance in Alabama
The average cost of homeowner insurance in the U.S. is $1,211, but in Alabama, the average is somewhat higher, at $1,754. Rates can be significantly affected by the weather patterns, which in Alabama includes strong thunderstorms, some of the most deadly tornadoes in American history, and related weather patterns.
Your own costs, of course, will vary. Factors such as the age and location of your home play a role, as does your credit rating, insurance history, and even your marital status.
Since every insurer has their own algorithm for determining premiums, we recommend that you ask for quotes from several companies to see which ones offer the best coverage for the money.
Home Insurance add-ons that will further protect you-
The most common type of homeowner insurance in Alabama is an HO-3 policy, and it covers certain named perils, such as wind and snow storms, fires and smoke damage, and other common mishaps.
Tornadoes are another matter: some policies cover them and some do not.
Additionally, Alabama homeowners should consider adding an endorsement to their policies to cover flood damage. Your insurer manages the flood coverage, but the insurance itself is part of a government program managed by FEMA.
This is especially important if you live in a flood plain, and FEMA has a site that can tell you if you do.
Helpful Resources for Alabama Homeowners
One good resource for Alabama residents is the Alabama Department of Insurance website. This site features general information for consumers on insurance matters and is where you’d go in the event you need to file a complaint against your insurer.
It also has a glossary of insurance terms that you may find useful in understanding your policy.
The Strengthen Alabama Homes (SAH) project is another initiative that may be of interest to residents of Baldwin and Mobile Counties. This program provides grants to individuals who undertake wind mitigation projects, which strengthen a home so it’s better able to withstand a tornado.
The National Association of Insurance Commissioners also provides a Consumer’s Guide to Home Insurance if you are new to insurance or have questions in general.
We used the methodology we developed for our review of the Best Homeowners Insurance Companies to find the best homeowners insurance providers in Alabama.
We started with the 15 insurers who have the most market share in the state, and reviewed their financial rankings with AM Best and Standard & Poors, as well as their ratings with consumer watchdogs like J.D. Power and Consumer Reports.
In addition, we compared customer experiences, discounts and perks, resources, and more.
Best Alabama Homeowners Insurance Companies
- Low premium costs
- Focus on high-value homes
- Homeowner Plus endorsement
- Not many discounts
Though it is an Ohio-based company, Cincinnati Insurance is a top contender on our list that offers policies that focus on higher-value homes. Even though coverage is available to most home types, if your home is worth more money, Cincinnati might be a good fit.
Surprisingly, Cincinnati provided the lowest premium quote of all of our contenders, at $537 — well below the state average.
Cincinnati doesn’t have a lot of extras, either discounts or add-ons, but one that we liked was the Homeowner Plus endorsement.
- Financially solid
- Great customer service
- Helpful online community
- Only available to military families
USAA is a great company. It has high ratings from financial organizations, is at the top of customer service rankings, and offers competitive rates for solid comprehensive coverage. In addition, it also provides extensive member resources within the USAA Community.
About the only thing that’s disappointing is that its policies aren’t available to the general public: it exists to serve those who are currently or formerly in the military and their families. Even with that limitation, however, it’s the fourth largest writer of homeowner insurance policies in the nation, and is well worth a look if you fit the demographic.
- Amendments let you customize
- Lots of discounts
- Great website
- Customer service is average
Allstate is the second largest homeowner insurer in the U.S. was included in our top picks for its well-designed website that makes it easy for you to handle the business of your insurance online. There are also some great guides, such as a Common and Costly Claims tool and a robust list of add-ons, or amendments, that let you customize your policy so that it fits your particular needs.
On the other hand, Allstate isn’t known for top-of-the-line customer service. It scores 814 out of 1,000 from J.D. Power, which puts it a shade below the industry average of 816. Consumer Reports gives it an 82 out of 100 — not a failing grade, by any means, but not especially high compared to the competition.
- Documented financial strength
- Excellent online experience
- Great quote tool
- Limited discounts
State Farm accounts for roughly 18% of the U.S. market for homeowner insurance, and it writes nearly 30% of the homeowner policies for citizens of Alabama, making it a major player in the state. It stands out with an A++ from AM Best and offers members excellent website features. The extensive quote process ensures you have a highly-accurate quote for your policy needs.
Where the company falls short is in its list of amendments and discounts, which are not as extensive as competitors like Allstate.
- Highly rated customer service
- Financially strong
- Good claims satisfaction
- Poor digital experience
Not as large a company as Allstate or State Farm, Auto-Owners is nonetheless a company that can hold its own among Alabama homeowners insurance providers. It excels in customer service, landing in third place in Consumer Reports homeowners insurance listing with an 89 out of 100, and it’s in fifth place in J.D. Powers more extensive rankings of Overall Customer Satisfaction.
The company’s A++ rating with AM Best means that it has the financial resources to pay out on claims even in the case of a large regional disaster. J.D. Power scored Auto-Owners a respectable 889 out of 1,000 on its more focused Property Claims Satisfaction Study.
Auto-Owners website is its primary limitation — there’s no online quote tool, limited educational resources, and you can’t file a claim online.
The Cheapest Homeowner Insurance Companies In Alabama
|Homeowner Insurance Companies||Average Annual Premium|
|Cincinnati Ins Co||$537|
|Garrison Prop & Cas Ins Co||$710|
|Centauri Specialty Ins Co||$1,137|
|LM Ins Corp||$1,637|
|Liberty Mut Fire Ins Co||$2,526|
Homeowner Insurance by Age of Home
|Credit Rating Tier||Average Annual Premium|
|Average Across Tiers||$1,754|
Quadrant home insurance rate data as of 12/01/2019.
These rates are a sample set meant only for general comparison. Your own premium will vary. Learn how we tested rates for the cheapest home insurance companies in our methodology.
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
Our cheapest homeowner insurance quote in Alabama came from Cincinnati Insurance Company, with USAA and Allstate right behind it.
Keep in mind that a homeowner insurance quote is a personalized number that is determined through looking at multiple factors. The age of your home, the neighborhood you live in, your own age, and much more, goes into that final number.
Your best bet is to obtain quotes from a range of companies, and then consider customer service, financial strength, and breadth of coverage available before you make your decision.
Homeowners Insurance FAQ
Is homeowners insurance required in Alabama?
It depends. State laws do not require you to carry homeowner insurance in Alabama. If you have a mortgage, though, your mortgage lender will probably require you to carry a policy for as long as the mortgage is active in order to protect their investment.
What is the cheapest homeowners insurance in Alabama?
Our cheapest quote, $537, came from Cincinnati Insurance Company. A number of our other quotes came in well below the Alabama state average. Your own quote will differ depending on multiple factors, and you should obtain several quotes of your own before deciding what company will insure your home.
The three cheapest homeowner insurance providers in Alabama based on our quotes were Cincinnati Insurance, USAA, and Allstate.