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-Owners | 4.8 | $1,732 | 843 | A++ | N/A | |
| Pin Cincinnati Financial | 4.25 | $537 | N/A | A+ | A+ | |
| Pin USAA | 3.8 | $702 | 889 | A++ | AA+ | |
| Pin Allstate | 3.8 | $971 | 829 | A+ | AA- | |
| Pin State Farm | 2.8 | $1,550 | 829 | A++ | 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.
Best Overall Alabama Home Insurance
Why we chose it
Why we chose it
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
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
Cheapest Alabama Home Insurance
Why we chose it
Why we chose it
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
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
Best for Military Members
Why we chose it
Why we chose it
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
Available Discounts
- Policy bundling
- Protective device
- Claims-free
Additional Coverage
- Home sharing insurance
- Identity theft coverage
- Earthquake insurance
- Flood insurance
- Military uniform coverage
- Valuable personal property coverage
More USAA Insurance Reviews
Best for Optional Coverages
Why we chose it
Why we chose it
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
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
Best for New Homeowners
Why we chose it
Why we chose it
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
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 Companies | Average 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 Tier | Average 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 Department of Insurance’s Consumer’s Guide to Homeowners Insurance
- Alabama Department of Insurance’s Commonly Asked Home Insurance Questions
- Alabama Department of Insurance’s Flood Insurance Information
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 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.
