Getting the Best Home Insurance in Alabama
Alabama homeowners pay an average of $175 a month for home insurance. Of the largest insurers in Alabama, Cincinnati Insurance Company offers the cheapest rate of $117 a month.
Seeing as Alabama's average home insurance rate is well above the national average of $144, it may be important for you to find the best coverage at the cheapest price. To help with that, we've compared and contrasted the rates, policy points and customer satisfaction trends of the biggest home insurance providers in Alabama. This will help you compare home insurance quotes and get the best coverage for your money.
We will cover:
How much does home insurance in Alabama cost?
Alabama home insurance has an average cost of $175 a month. This is a 22% increase over the national average home insurance rate of $144.
| Region | Monthly rate |
|---|---|
| Alabama | $175 |
| U.S. | $144 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
The large increase in policy cost over the national average largely comes down to Alabama's high risk for extreme weather. Severe tropical storms and hurricanes are common in Alabama, especially during late summer and early fall. Sinkholes are an issue as well. This puts the state in a high-risk status for home insurance. Other factors that affect your home insurance rates include:
- The age of your home
- Construction materials used
- Your insurance claim history
The best, cheapest home insurance companies in Alabama
Of the nine most frequently used homeowners insurance providers we looked at in Alabama, Cincinnati Insurance Company has the cheapest average home insurance rate of $117 a month, followed close behind by Allstate at $119 a month. Travelers has the highest average rate at $396, 126% higher than the state average.
There are several different factors to weigh and prioritize when deciding where to buy a home insurance policy. The cost of your policy, what it offers and the company's history should be considered to make sure your needs are met. We've looked deep into these home insurers and found these standouts:
Cincinnati Insurance Company: cheapest home insurance rate in Alabama
Cincinnati Insurance Company has the lowest average home insurance rate in Alabama of $117 a month. This is 33% less than Alabama's average rate of $175 a month. The table below shows how Cincinnati Insurance Company's rates compare in Alabama's largest cities:
| City | Monthly rate |
|---|---|
| Auburn | $110 |
| Birmingham | $138 |
| Decatur | $139 |
| Dothan | $126 |
| Hoover | $115 |
| Huntsville | $129 |
| Madison | $128 |
| Mobile | $83 |
| Montgomery | $130 |
| Tuscaloosa | $117 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
On top of low rates, Cincinnati Insurance Company has an excellent history of customer care. It received a rating of 0.003% on the National Association of Insurance Commissioners' (NAIC) complaint index. This rating reflects an insurer's capability with claims, such as how quick their response is after filing and payout. The lower the complaint index score, the better. The national average complaint index score is 1.0%, so Cincinnati Insurance Company is doing well in that regard.
Allstate: second-cheapest average rate in Alabama
After Cincinnati Insurance Company, Allstate has the next cheapest home insurance premium of Alabama's larger providers at $119 a month. The table below shows how Allstate's rates range in Alabama's biggest cities:
| City | Monthly rate |
|---|---|
| Auburn | $129 |
| Birmingham | $120 |
| Decatur | $130 |
| Dothan | $101 |
| Hoover | $119 |
| Huntsville | $112 |
| Madison | $113 |
| Mobile | $97 |
| Montgomery | $115 |
| Tuscaloosa | $101 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Allstate does fairly well on the customer care front, as well. In J.D. Power's 2021 Property Claims Satisfaction Study, Allstate ranked at 882 out of 1,000. This puts them just under the national average ranking of 883, which isn't bad for an insurance company of this size. Also, they have a 0.8% rating on the NAIC Complaint Index. The index reflects a provider's capability to deal with claim-oriented issues such as response time and payout. The national average complaint index is 1.0%, which puts Allstate in a strong position.
USAA: cheap rates and best for military veterans
USAA has an average home insurance rate of $141 a month, 19% lower than the state average. The following table shows USAA's average rate in Alabama's largest cities:
| City | USAA |
|---|---|
| Auburn | $105 |
| Birmingham | $142 |
| Decatur | $143 |
| Dothan | $120 |
| Hoover | $118 |
| Huntsville | $150 |
| Madison | $152 |
| Mobile | $123 |
| Montgomery | $121 |
| Tuscaloosa | $117 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
USAA has a special status in the insurance industry in that they only sell home insurance for current and retired military and their families. If you're one of our country's 330,000 veterans, USAA is strongly recommended.
USAA is often considered the top home insurance provider in the industry. J.D. Power gave USAA a rating of 905 out of 1,000 in their 2021 Property Claims Satisfaction Study, the highest rating given to any insurer. Since USAA is available to only military members they are not included in J.D. Power's official ranking, otherwise they'd be at the top.
State Farm: cheap rates and most popular
State Farm's average home insurance rate stands at $162 a month. This is 7% lower than the state average. Here are State Farm's rates in Alabama's larger cities:
| City | Monthly rate |
|---|---|
| Auburn | $146 |
| Birmingham | $176 |
| Decatur | $171 |
| Dothan | $144 |
| Hoover | $155 |
| Huntsville | $162 |
| Madison | $171 |
| Mobile | $110 |
| Montgomery | $152 |
| Tuscaloosa | $154 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
State Farm is the most popular home insurance company in Alabama. Despite not having the lowest home insurance rates in AL, they hold 14.93% of the insurance market share. Alfa is second with 8.91%. State Farm's popularity is due in part to its history of handling claims. Their NAIC Complaint Index rating is 0.06%, well below the national average of 1.0%.
Metlife: best customer satisfaction
Metlife's average rate for home insurance in Alabama is $174 a month, just under the state average. Although it offers reasonable rates, Metlife's major strength is customer satisfaction. In J.D. Power's 2021 Property Claims Satisfaction Study, Metlife ranked at 904 out of 1,000, the highest-ranking in 2021.
The study is based on factors such as policy offerings, cost and billing process. If you're willing to pay more for reliable care, Metlife is a strong recommendation to Alabama homeowners. Below is a graph showing Metlife's average home insurance rates in Alabama's most populated cities:
| City | Metlife |
|---|---|
| Auburn | $115 |
| Birmingham | $138 |
| Decatur | $111 |
| Dothan | $405 |
| Hoover | $89 |
| Huntsville | $120 |
| Madison | $105 |
| Mobile | $842 |
| Montgomery | $121 |
| Tuscaloosa | $107 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
In addition, Metlife offers a variety of discounts to reduce your home insurance spending. These include:
- Bundling: If you have an auto or life insurance policy with Metlife, you can save money by bundling it with a home insurance policy.
- Home security: You can reduce your rates by installing features such as a burglar or fire alarm.
- Retiree discount: If you're 55 or older and retired, you can save even more money on your premium.
Why does home insurance in Alabama cost so much?
Alabama's high home insurance rates are due to consistent weather and geographical factors that can do serious damage to a house. Tornadoes and floods are common dangers all along the East Coast. On top of that, Alabama is among the seven states in the U.S. that suffer the most damage from sinkholes.
Tornadoes
Tornadoes are all too common in Alabama. As of mid-May 2021, Alabama has seen 49 tornadoes across the state. The damage a tornado can cause to a home can run into the hundreds of thousands of dollars.
Tornado damage is covered by homeowners insurance, but damage prevention is a high priority to pay attention to, as well. Installing tornado doors and windows, as well as reinforcing your roof, can save you thousands of dollars in the long run.
Flooding
Alabama gets an average of 56 inches of rain annually, one of the highest rates in the country. This results in heavy, frequent flooding in the state. It's important to know that flood damage is not covered by any standard homeowners insurance. You can, however, purchase flood insurance through providers who take part in FEMA's National Flood Insurance Program (NFIP).
Sinkholes
Due to significant amounts of limestone, northern and southern Alabama suffer from sinkholes. While not covered by standard home insurance policies, you can purchase sinkhole insurance as an endorsement. You will want to be sure to know what exclusions your sinkhole policy may have, such as man-made mine collapse. Sinkhole insurance is often very expensive, and excluded events can cost you even more.
Methodology
We used Quadrant Information Services to generate thousands of home insurance quotes for every ZIP code in Alabama from the following providers:
- Alfa Mutual
- Allstate
- Cincinnati Insurance Company
- Country Financial
- Farmers
- Metlife
- State Farm
- Travelers
- USAA
Our sample home used the following policy specifications:
- Dwelling coverage: $275,000
- Personal property coverage: 50% of dwelling ($137,500)
- Other structures coverage: 10% of dwelling ($27,500)
- Loss of use coverage: 20% of dwelling ($55,000)
- Liability coverage: $100,000
Coverage sets were calculated using the following deductible limits:
- $500
- $1,000
- $1,500
- $2,000
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.