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
| Average Price | AM Best Financial Strength | J.D. Power Overall Customer Satisfaction | |
| Cincinnati Insurance | $537 | A+ | N/A |
| USAA | $702 | A++ | 889* |
| Allstate | $971 | A+ | 829* |
| State Farm | $1,550 | A++ | 829* |
| Auto-Owners | $1,732 | A++ | 843* |
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Best Alabama Homeowners Insurance Companies
Cincinnati Insurance Co.
Though it’s 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.
Best Pricing Options
Why we chose it
Why we chose it
Pros
- Low premium costs
- Focus on high-value homes
- Homeowners Plus endorsement
Cons
- Few discounts
- Lacks third-party ratings
Discounts available
- 50+ or retired discount
- Home security discount
- Bundle discounts
Unique features
Some of the more unique features you can get with a homeowners policy through Cincinnati Insurance include coverage for multiple types of dwellings, several option enhancements for your policy, and identity theft expense coverage and advocacy service.
*J.D. Power 2020 U.S. Home Insurance Study, based on a 1,000-point scale
USAA
USAA appears at the top of rating lists for its excellent customer service, comprehensive policies and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.
Best for Military Members
Why we chose it
Why we chose it
Pros
- Financially solid
- Great customer service
- Helpful online community
Cons
- Only available to current and former military members and their families
- Limited discounts
Discounts available
- Bundle discounts
- Discount of 10% if no claims in the last five years
- Home security system discount
Unique features
USAA’s policies are written with service men and women in mind. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
*J.D. Power 2020 U.S. Home Insurance Study, based on a 1,000-point scale
Further Reading on USAA:
Allstate
Allstate’s strength is in the diversity of its offerings and discounts, which allow you to pick and choose the coverage that works best for your circumstances. It has a great website, with tons of useful information.
Best Discount Options
Why we chose it
Why we chose it
Pros
- Amendments let you customize
- Lots of discounts
- Great website
Cons
- Customer service is average
- Financial strength ratings good, but not great
Discounts available
- Multi-policy discount
- Claim-free discount
- Early signing discount
Unique features
Your Allstate homeowners insurance policy comes with the company’s Claim RateGuard, Deductible Rewards, and Claim-Free Rewards. In other words, Allstate loves to reward its customers in unique and savings-friendly ways.
*J.D. Power 2020 U.S. Home Insurance Study, based on a 1,000-point scale
Further Reading on Allstate:
State Farm
State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about home ownership in general.
Best for Fast Claim Payments
Why we chose it
Why we chose it
Pros
- Documented financial strength
- Excellent online experience
- Great quote tool
Cons
- Limited discounts
- Higher premiums
Discounts available
- Multiple line discount
- Home alert protection discount (fire, smoke, or burglar alarms)
- Roofing discounts based on the type of roofing products on the house
Unique features
One of the most unique features about State Farm is the company’s dedication to educating customers on how to get the most out of their homeowners insurance policy in Alabama. The site is jam-packed with resources and informative guides to lead you to success in protection.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on State Farm:
Auto-Owners Insurance
If you prefer doing your insurance business in person or by phone rather than digitally, Auto-Owners could be a good fit for you. Auto-Owners doesn’t have an online quote tool, nor can you report a claim online.
Best for Claims Satisfaction
Why we chose it
Why we chose it
Pros
- Highly rated customer service
- Financially strong
- Good claims satsifaction
Cons
- Poor digital experience
- Not rated by all credit agencies
Discounts available
- Multi-policy discount
- Green discount for paperless billing
- Paid-in-full discount
Unique features
What’s unique about Auto-Owners is that the company likes to maintain the face-to-face and personalized experience that many customers seek when looking to insure their home. The company handles very little online and promotes the customer-agent relationship.
*J.D. Power 2020 U.S. Home Insurance Study, based on a 1,000-point scale
Further Reading on Auto-Owners:
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.
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 |
Homeowner Insurance by Age of Home
| 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 |
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.
Helpful Resources for Alabama Homeowners
If you still need a little help in understanding all of this information and deciding on what level of coverage is best for you, there are additional sources of information out there that can help. For residents and new-residents in Alabama, the state has a thorough consumer’s guide to help you best understand homeowners insurance in the state. The best source of information is always state agencies that are up to speed on state-specific information.
Homeowners Insurance FAQ
Is homeowners insurance required in Alabama?
State law does not require homeowners in Alabama to carry homeowners insurance. But if you have a mortgage on your home, the chances are high your lender will require you to cover your home and your belongings from unexpected occurrences with Alabama homeowners insurance.
What is the cheapest homeowners insurance in Alabama?
The rate you’ll get on your homeowners insurance in Alabama depends heavily on your home and your coverage needs. That being said, sample policies showed Cincinnati Insurance, USAA, and Allstate to be the cheapest options in the state.
Methodology
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best providers. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
About the Authors
Mary Van Keuren has been covering auto and home insurance for Reviews.com for nearly five years, and has published numerous reviews of state-specific insurance trends and how to find the best insurance deals for your money. She earned B.S. and M.A. degrees from Nazareth College in Rochester, N.Y. and has been writing professionally, both in print and online, for 30+ years.
