Best Home Insurance Rates in Alabama

On average, your neighbors pay $111 a month.

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Compare Homeowners Insurance Quotes 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, and being 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

Alabama has some of the highest average homeowners insurance rates of any state in the US. In 2014, the Insurance Information Institute reported that the average premium in the state of Alabama was $1,340. That is quite higher than the national average of $1,132. Only seven states have higher average homeowners rates than Alabama. 

Alabama Average Annual Homeowners Insurance Rates
  2012 2013 2014
Alabama Annual Average $1,248 $1,323 $1,340
Alabama Price Per Month $104 $110 $111
US Annual Average $1,034 $1,096 $1,132
US Cost Per Month $86 $91 $94
National Rank 6 8 8
Source:http://www.iii.org/fact-statistic/homeowners-and-renters-insurance

Choosing a company to insure your home should be easier. Actually, it’s already easy; you could just go with whichever company your mortgage lender recommends, but you probably won’t get the best rates that way. The key to finding the cheapest rates is to compare home insurance quotes in Alabama from multiple companies.

Best 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.

  1. Allstate Insurance
  2. Geico
  3. Farmers
  4. Progressive Casualty
  5. USAA
  6. Nationwide
  7. Liberty Mutual
  8. AAA Insurance Co.
  9. American Family
  10. Country Financial
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Why contact every individual company in Alabama that you want a homeowners quote from when you can just answer a few questions about your home and desired coverage, and get competing quotes from agents? Save time and money with QuoteWizard.

Alabama Homeowners Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Direct Premiums Written (in thousands) Market Share
1 Alfa Mutual Group $216,132 13.9%
2 Allstate $164,232 10.6%
3 Farmers Insurance Group of Cos. $109,888 7.1%
4 Travelers Companies Inc. $89,407 5.7%
5 USAA Insurance Group $84,064 5.4%
6 Liberty Mutual $54,015 3.5%
7 Nationwide Mutual Group $49,737 3.2%
8 COUNTRY Financial $49,378 3.2%
9 Auto-Owners Insurance Co. $35,207 2.3%

Financial Strength Ratings of Top Alabama Home Insurers

Source: A.M. Best (Ratings as of 8/5/2015)

  • Alfa Mutual Group: A
  • Allstate: A+
  • Farmers Insurance Group of Cos.: A
  • Travelers Companies Inc.: A++
  • Insurance Group: A++
  • Liberty Mutual: A
  • Nationwide Mutual Group: A+
  • COUNTRY Financial: A+
  • Auto-Owners Insurance Co.: A++
Get a quote from some of these top rated insurers! Request Quote Get a Quote From Top Insurers

Rating Guide

Alabama Property & Casualty Insurance Share

Source: National Association of Insurance Commissioners
Rank Company Direct Premiums Written (in thousands) Market Share
1 Alfa Mutual Group $697,513 9.5%
2 Allstate $465,486 6.4%
3 Travelers Companies Inc. $346,379 4.7%
4 Geico $270,042 3.7%
5 Liberty Mutual $262,903 3.6%
6 United Service Automobile Assurance Co. $255,910 3.5%
7 Nationwide Mutual Group $245,241 3.4%
8 Farmers Insurance Group of Cos. $241,191 3.3%
9 Progressive Group $215,522 3.0%
*Represents both home and auto insurance

Home Insurance Rate Factors

Many different factors come into play when insurance companies calculate the cost of homeowners insurance. Some, like the age of your home, are within your control. Others, like crime rates or natural disasters, are beyond your control. Here are some of the factors that affect the cost of insuring your home in Alabama.

Average Home Listing Prices

Home prices can greatly affect the cost of insurance in any given state. A higher average home price generally means higher premiums in that state. For Alabama, the average listing price is $198,554, as of July 2015. This is notably lower than the national average of $284,748.

Average Burglary Rates

Burglary is a serious and sometimes violent property crime. States with higher average burglary rates generally have higher average home insurance premiums, because the likelihood that someone will need to file a claim is higher. According to data from the FBI Uniform Crime Report, in 2013, Alabama’s average burglary rate was 877.8 per 100,000 people, which is much higher than the national average of 610.0 per 100,000.

Alabama Home Hazards

Alabama has some serious homeowner’s insurance hazards that are not uncommon for the region, including a number of natural disasters. As is typical of the south, Alabama frequently experiences hurricanes, tornadoes, and hot, humid summers.

States with more law enforcement per capita tend to be safer than states with fewer policemen and women. In Alabama, there are 31.9 law enforcement personnel per 100,000 total citizens. This is basically equal to the national median of 32 per 100,000.

Hurricanes: According to the National Oceanic and Atmospheric Administration, Alabama has been impacted by 27 hurricanes, 5 of which were considered “major,” meaning category 3 or above. Hurricanes Ivan, Rita, and Katrina, three of the most destructive hurricanes in US history, hit Alabama. Hurricanes cause millions of dollars in damage every year, and bring with them severe weather, strong winds, and heavy rains. Katrina hit Mobile, Alabama with winds around 70 mph, flood waters at about 12 feet, and caused an oil rig to strike a bridge.

Rain and thunderstorms: Because it rarely gets below freezing in Alabama, rainstorms are more common than snowstorms, and the state receives an average of 57 inches of rain per year. Most parts of Alabama receive over 100 days of rain per year, on average. A lot of this rain comes in the form of thunderstorms, which are quite common, especially during summer months. With 58.8 days, Birmingham is rated the #7 major city in the US in terms of days per year of thunderstorms. Birmingham is also the #3 major US city by highest annual rainfall. Precipitation occurs fairly uniformly all year-round in Alabama, so flooding is always a concern. The only way to obtain flood insurance is through the National Flood Insurance Program. Learn more about the NFIP here.

Tornadoes: Tornadoes are extremely destructive storms, often the by-product of other storms such as thunderstorms. They bring heavy rains, extreme winds, and can cause hail and floods--all of which are extreme homeowners insurance hazards. According to NOAA, Alabama averages 23 tornadoes per year. And, in 2012, the National Weather Service ranked Alabama the #2 most tornado-prone state, second only to Mississippi. And, Alabama ties Kansas for the most recorded tornadoes of level EF5, the highest possible level. These tornadoes are extremely powerful, and northern parts of the state are especially vulnerable.

Heatwaves: Hot summers are common in Alabama, where temperatures average over 90 degrees in most regions. In fact, Alabama has the #7 highest average annual temperature in the US, mostly due to its long, hot summers. Throughout the state, average high temperatures exceed 80 degrees as early as May, and don’t drop back below 80 until October. A heat wave, however, is something much more extreme. In 2012, an unusually severe heat wave struck Alabama, resulting in temperatures as high as 105 degrees and setting temperature records throughout the state. Hot summers are an insurance hazard in and of themselves, so heat waves can be severely damaging, causing bodily harm, power outages, and forcing people to stay inside.

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:

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