Compare Homeowners Insurance in Alabama
Even though it’s the 22nd state, finding homeowners insurance in Alabama can be a first rate challenge. The home of the Crimson Tide is known for a number of things, including the Talladega Superspeedway. It's also the birthplace of Nat King Cole, Hank Williams and Lionel Richie. From scorching summers, to hurricanes, to tornadoes, the insurance risks here in the Heart of Dixie are numerous.
Average Alabama Homeowners Insurance Rates
How much is home insurance in Alabama? Some of the highest average homeowners insurance rates of any state in the US can be found in Alabama. The average premium in the state of Alabama was $1,358. That's much higher than the national average of $1,173. Only eleven states have higher average homeowners rates than Alabama.
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| Alabama Annual Average | $1,323 | $1,340 | $1,358 |
| Alabama Price Per Month | $110 | $111 | $113 |
| US Annual Average | $1,096 | $1,132 | $1,173 |
| US Cost Per Month | $91 | $94 | $98 |
| National Rank | 8 | 8 | 12 |
| Source: Facts + Statistics: Homeowners insurance | |||
The graph below shows the change in average Alabama home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, Alabama homeowners insurance rates increased from $1,163 in 2011 to $1,358 in 2015, a jump of $195 dollars, or 16.77 percent.
Choosing a company to insure your home should be easier. The key to finding the cheapest rates is to compare home insurance quotes in Alabama from multiple companies.
Most Popular Alabama Home Insurance Companies
Last year, these were the most common home insurance companies reported by QuoteWizard users living in the state of Alabama. Out of the 15,279 Alabama homeowners that used QuoteWizard to request insurance quotes last year, 1,379 had no home insurance.
- Allstate
- Geico
- Farmers
- Progressive
- USAA
- Nationwide
- Liberty Mutual
- AAA
- American Family
- Country Financial
Best Homeowners Insurance Companies in Alabama
The above list shows Alabama’s most popular home insurers according to our users. But popular doesn’t always mean best.
Our study on the best homeowners insurance companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:
- Amica: Best Overall
- MetLife: Best for Bundling
- Allstate: Best for Local Agents
- Hartford: Best for Seniors
- State Farm: Best for Pet Owners
- Travelers: Best for Flexible Policies
- Nationwide: Best Replacement Coverage
- Farmers: Best for Eco-Friendly Homes
- Liberty Mutual: Best for Quick and Easy Quotes
- Auto Owners Insurance: Best Claims Experience
Alabama Homeowners Insurance Company Market Share
| Rank | Company | Financial Rating | Market Share |
|---|---|---|---|
| 1 | Alfa Mutual Group | A | 13.9% |
| 2 | Allstate | A+ | 10.6% |
| 3 | Farmers Insurance | A | 7.1% |
| 4 | Travelers Companies | A++ | 5.7% |
| 5 | USAA Insurance | A++ | 5.4% |
| 6 | Liberty Mutual | A | 3.5% |
| 7 | Nationwide Mutual | A+ | 3.2% |
| 8 | COUNTRY Financial | A+ | 3.2% |
| 9 | Auto-Owners Insurance | A++ | 2.3% |
Alabama Home Insurance Rate Factors
How much does a homeowners policy cost in Alabama? Your insurance company will assess many different factors when deciding your rates. Some factors, of course, depend on you and your house. Other considerations, however, are based on local and state factors.
Your Personal Rate Factors
Your House
Insurers start by analyzing your house. They’ll focus on three details in particular.
House age
The older your house, the higher your insurance rates will be. As your house ages, your chances of needing to file a claim increase. That’s especially true if the house is lacking in regular maintenance.
Over 66 percent of the homes in Alabama were built between 1970 and 2009. Alabama homes built before 1970 will likely face higher rates due to their age.
Roof age and quality
The roof is the primary protector of your home against the elements. Keeping your roof well maintained guards against both extreme weather and high insurance rates. Asphalt shingle roofs, the most common material, last 15 to 25 years on average. If your roof is on the end stage of its lifespan, you’re going to face higher insurance rates.
With the levels of snowstorms that can occur in Alabama, consider roofing material other than asphalt. Metal is a popular option for this. Snow has a lot of difficulty gripping on a metal surface, leaving it to slide off before it can accumulate. And with a lifespan between 40 and 70 years, it’s a good long-term investment.
Replacement cost
Replacement cost refers to the dollar amount it costs to rebuild your home from the ground up.
This number is important to know when comparing rates, as your policy’s structure coverage should match the replacement cost. There are many ways to estimate your home's replacement cost.
Don’t assume that replacement cost and market value are the same. Replacement cost doesn’t take land value into account. An $140,000 home Huntsville could possibly cost less to replace than an $80,000 home in Montgomery.
Replacement cost accounts for the home’s size and general construction style. A house with more expensive construction materials and finishes will have a high replacement cost.
Claims History
Any home insurance claim you make will raise your rates. Claims stay on your insurance record normally for five to seven years. Should you file another claim during that time, you can expect your rates to go up a whole lot more. Consider your return on investment if you’re about to file a claim. If your claim is for relatively minor damage, filing a claim probably won’t be worth the rate increases afterwards.
Pets
According to the AVMA, 44.1 percent of Alabama homes have a dog in it. If you’re one of them, be aware of how owning specific breeds can affect your premium. Certain exotic pet breeds can raise your rates as well.
Credit Score
Your insurer will check your credit score when putting together your quote. And, unfortunately, people with poor credit pay more for insurance. Your current debt level, history, and limits are all factors in the final rate. The average credit score in Alabama is 676. This is a little below the national average of 682.
Alabama Rate Factors
Weather
Weather is a large part of your homeowners rate, but unfortunately you have no control over it. If you live in an area with a history of extreme weather, it will raise rates for you and your neighbors.
Hurricanes are a fact of life in Alabama. The state suffered four of the 10 costliest hurricanes in the country between 2004 and 2017. Alabama insurers require a hurricane deductible. The deductible is between 1 and 5 percent of the value of the home. If the home is worth $200,000 and has a 2 percent deductible, you’d have to pay $4,000 up front before your insurance handled the rest. If the deductible was 5 percent, you’d have to pay $10,000.
While you can’t change the weather, you can prepare your home for it. That includes storm windows, roof maintenance, foundation upkeep, and more.
Crime
Property crime trends in your part of Alabama can influence your home insurance premium. If you live in a high crime area, your rates may be higher. But property crime rates vary throughout the state. Birmingham has a property crime rate of 62.87 per 1,000 residents. Auburn has a property crime rate of 17.82 per 1,000 residents. Auburn residents will see a higher insurance rate based on this.
Types of Home Insurance Policies
- HO-1: This is the most bare bones policy you can get. It only covers loss due to the common named perils.
- HO-2: This covers named perils, but also covers for incidents such as fire, vandalism, and glass breakage among others.
- HO-3: This is the most popular form of policy. It is a comprehensive policy that covers everything unless specifically excluded for your home and attached structures such as garages and decks, liability, and your belongings.
- HO-5: This premium plan covers much of what the HO-3 does, with fewer exclusions.
- HO-6: This is covers condominiums for liability and belongings in the condo.
- HO-7: Provides HO-3 type coverage for mobile and manufactured homes, which do not fall under standard HO-3 policies.
- HO-8: Older homes tend to cost more to cover due to older materials needed for replacements. The HO-8 provides for repair or replacement with more modern materials, reducing the rates considerably.
Alabama Office of the Insurance Commissioner
- Website:
- Homepage
Insurance Commissioner:
- Jim L. Ridling
- Insurance Hotline:
- (334) 269 – 3550
- Office Hours:
- Monday - Friday
8:00 am to 5:00 pm
- File a Consumer Insurance Complaint
- Complaint Page
Sources:
- A.M. Best Insurance Carrier Ratings
- Insurance Information Institute – Home Insurance Market Share in Alabama
- NAIC--Home Insurance Market Share in Alabama
- Average Home Insurance Rates in Alabama
- Average Home Listing Price in Alabama
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