Best Homeowners Insurance in Alabama

With its miles of coastline, Alabama is a beautiful state. However, its subtropical climate is known to kick up fierce storms that can affect many waterways. That means from thunderstorms to hurricanes and tornadoes, severe weather can happen often and impact the safety of your home.

Find the Best Home Insurance in Alabama

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    To protect your home from Alabama natural disasters, it’s important to find the best home insurance companies in Alabama. We rated and reviewed the best home insurance companies using our SimpleScore methodology, which compares discounts, coverage options, customer satisfaction, customer support and accessibility.

    In this article

      The 6 best home insurance companies in Alabama 

      Best for inexperienced homebuyers – Allstate

      Get an extra 30% off your Allstate home insurance policy when you bundle with an auto policy.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA-
      SimpleScore
      4.4 / 5.0
      close
      SimpleScore Allstate 4.4
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      Allstate has all of the tools to help you become further acquainted with home insurance. Allstate is a popular national brand, but it is especially popular in Alabama for its expansive coverage. It is a company that offers all the resources and tools you need to become further acquainted with home insurance coverage, so you can be sure to protect you and your family with everything you need for your home. With flexible policies and tons of discounts, Allstate is a great choice for Alabama homebuyers.

      Best discounts – Alfa Mutual

      Alfa Mutual encourages you to keep it in the family with a 20% legacy discount for the children of homeowners with existing policies.

      J.D. Power Rating
      N/A
      AM Best Rating
      A++
      Standard & Poor’s
      A
      SimpleScore
      2.5 / 5.0
      close
      SimpleScore Alfa Mutual 2.5
      Disconts 3
      Coverage Options 2
      Customer Satisfaction N/A
      Support 2
      Accessibility 3

      We love this local provider for its thoughtful coverage and ample opportunity for discounts. Although Alfa Mutual remains unrated by J.D. Power, that’s fairly common for smaller, local providers. Alfa Mutual is an Alabama-based insurance provider that offers unique coverage specifically designed to meet the needs of Alabama homeowners. There are also plenty of chances to save with extra discounts, including regional ones for storm-resistant homes in certain counties.

      Best mobile tools – State Farm

      Whenever you need to file a claim, State Farm will leave the light on with 24/7 service.

      J.D. Power Rating
      3/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA
      SimpleScore
      4 / 5.0
      close
      SimpleScore State Farm 4
      Discounts 2
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      State Farm keeps you plugged in even when you’re on the go. With over 25% market share for Alabama home insurance, State Farm is one of the most popular and reliable home insurance providers for Alabama homeowners. Policies are also largely affordable, with customized coverage for every kind of property from a single-family home to condo to mobile home.

      Best for military members – USAA

      Home insurance isn’t the only way to cash in, with USAA offering can’t-miss discounts for bundled policies.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA+
      SimpleScore
      4.6 / 5.0
      close
      SimpleScore USAA 4.6
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 5
      Support 5
      Accessibility 5

      This military-only provider is a favorite for superior customer service. USAA remains at the top of J.D. Power rankings year after year for first-class customer service to military members and their families, while financial ratings also remain high for quick claims processing. Policies are very affordable for Alabama’s large military population and are a favorite for Alabama homeowners insurance.

      Best policy options – Metlife

      Millennials may feel let down by the lack of mobile tools, but great customer service helps make up for it.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA-
      SimpleScore
      2.6 / 5.0
      close
      SimpleScore Metlife 2.6
      Discounts 2
      Coverage Options 4
      Customer Satisfaction 3
      Support 3
      Accessibility 1

      Multi-faceted policies mean simpler and more affordable coverage for your home. MetLife isn’t big on the digital tools, but customers still remain largely satisfied with the service they receive on their Alabama homeowners insurance. Homeowners insurance coverage is impressively expensive, including replacement cost coverage and far more protections in its standard policies than other providers.

      Most customizable coverage – Country Financial

      Save your money for the fun stuff, because COUNTRY costs about half of the state’s average policy.

      J.D. Power Rating
      N/A
      AM Best Rating
      N/A
      Standard & Poor’s
      N/A
      SimpleScore
      3 / 5.0
      close
      SimpleScore Country Financial 3
      Discounts 3
      Coverage Options 4
      Customer Satisfaction 3
      Support 2
      Accessibility 3

      Take your pick of COUNTRY’s multiple insurance products for completely customized Alabama homeowners insurance. COUNTRY Financial is not as well-known as some of the other providers, but it offers expansive coverage that you cannot afford to miss. While it is particularly noteworthy for its manufactured home insurance, COUNTRY has  plenty of other options to choose from, including replacement cost coverage, identity theft protection and water backup protection.

      Find the Best Home Insurance in Alabama

      Save money on home insurance with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        Powered by HomeInsurance.com (NPN: 8781838)

        America’s top-rated home insurance

        • Policies starting at just $25/month
        • Sign up in seconds, claims paid in minutes
        • Zero hassle, zero paperwork

        [ Read: Where to Find Financial Relief During the COVID-19 Pandemic ]

        How much does home insurance cost in Alabama?

        While the nation’s average homeowners policy costs $1,211, the average cost of home insurance in Alabama is $1,433. Even though it is possible to find home insurance well under this cost, Alabama homeowners definitely pay more in home insurance because of the severe weather they often experience.

        With its prime position along the Gulf of Mexico, Alabama also has the most inland waterways in the country. That leaves the state prone to hurricanes, tornadoes and flooding, all of which can cause significant damage to your home. That is one of the reasons why home insurance can be more expensive here than in other areas that do not experience such frequent and severe storms.

        Ultimately, the cost of your home insurance policy will depend on your unique needs and factors like where your home is located, when it was built and what kind of property it is.

        The cheapest home insurance in Alabama

        The cost of home insurance in Alabama can vary, depending on where you live and what kind of coverage you need. Smaller, regional providers offer the cheapest Alabama home insurance, with Cincinnati Insurance and COUNTRY Financial offering the cheapest policies.

        These five providers offer the cheapest home insurance in the state.

        RankCompany name Avg. annual premium 
        1Cincinnati Insurance $821
        2COUNTRY Financial$940
        3MetLife$1,154
        4Farmers$1,244
        5USAA$1,286

        The cheapest home insurance in Alabama, by city

        Living in Alabama can mean any number of conditions, from hurricanes and flooding along the coast to tornadoes and severe thunderstorms affecting homes more inland. In Alabama, the cost of your home insurance will significantly depend on where you live, so we took a look at the cheapest cities in Alabama for home insurance.

        CityAvg. annual premium 
        Pelham$1,289
        Helena$1,330
        Hoover$1,352
        Mountain Brook$1,383
        Vestavia Hills$1,388

        Choosing your provider

        In Alabama, you can choose between local or regional providers and national carriers. While companies like State Farm and Allstate are known for their large national reach and multitude of resources, smaller, regional carriers may offer you the better customer service and support you may need — there are pros and cons to both.

        [ Read: How to Compare Home Insurance Rates ]

        Local carrier

        Pros 

        • Intimate knowledge of the local area
        • More personalized service
        • In-office interaction

        Cons 

        • Can be more expensive
        • May offer fewer tools

        National carrier

        Pros

        • More extended coverage
        • Greater opportunities for discounts
        • Better online and mobile tools

        Cons 

        • May offer subpar customer service
        • Fewer local branches

        Things to know about home insurance in Alabama

        Hurricane Katrina still remains fresh in the minds of many Alabama homeowners. Although more popularly known for its devastation in Louisiana, Alabama was another state affected by the storm’s wrath. It was a part of the storm’s total losses of more than $100 billion in damages.

        The Insurance Information Institute published a report analyzing potential risks for Alabama homeowners. It found that there are fewer than 6,000 homes at risk from a Category 1 hurricane. In contrast, more than 54,000 homes that are susceptible to damage from storm surge from a Category 5 storm.

        [ See: Does Home Insurance Cover Hurricanes? ]

        Hurricanes remain a real threat to Alabama homeowners, so it is important that you consider your home’s location when purchasing a new homeowners insurance policy. Those at greater risk for hurricane and storm surge damage may have a hard time finding an insurance company to insure their home.

        Additional home insurance coverage in Alabama

        With hurricanes and storm surge a constant threat for Alabama homeowners, it is important to consider purchasing flood insurance. This is not typically included with the standard homeowners insurance policy, so it may be an additional type of coverage that you will have to add on at an extra expense. FEMA provides a helpful flood map that will show you whether your home is located in a flood zone. Based on this, you can determine where you need additional flood coverage and how much.

        You can also ask your insurance provider for help. Flood insurance is a common type of hazard insurance that many Americans purchase to protect their coastal homes. Ultimately, the right type of Alabama homeowners insurance for you will depend on where your home is located and the specific risks that your property may face.

        Alabama home insurance FAQs

        Homeowners insurance is not legally required in the state of Alabama. That doesn’t mean that it isn’t a good idea, however. Many mortgage companies will require to purchase a minimum amount of homeowner insurance in order to protect your home from any potential damages.

        According to the Insurance Institute for Highway Safety (IIHS), the average cost of home insurance in Alabama is $1,433. However, the exact amount of your homeowners insurance policy can vary, depending on the type of property that you own, where your home is located and the provider you choose.

        In Alabama, the standard home insurance policy includes all of the basic coverage you need to protect your home and belongings. This includes dwelling coverage for your property, as well as coverage for additional living expenses, personal liability and medical payments.

        We welcome your feedback on this article and would love to hear about your experience with the home insurance companies we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

        Methodology

        SimpleScore

        The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
        For every review, our editorial team:

        • Identifies five measurable aspects to compare across each brand
        • Determines the rating criteria for each aspect score
        • Averages the five aspect scores to produce a single SimpleScore

        Here’s a breakdown of the five aspect scores and their rating criteria for our reviews on home insurance.

        Why do some brands have different SimpleScores on different pages?

        To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

        However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

        Discounts

        We looked at the number of discounts each company offers – more discounts mean a higher score.

        Coverage Options

        We awarded higher scores to the companies that offer more coverage options.

        Support

        We awarded higher scores to companies with the most channels for customer support.

        Customer Satisfaction

        We leveraged the J.D. Power 2019 Home Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

        Accessibility

        We looked at the level of accessibility of each company – the more resources they have the higher their score

        Lena Borrelli

        Contributing Writer

        Lena Borrelli is a Tampa-based freelance writer who has worked with leading industry titans, such as Morgan Stanley, Wells Fargo, and Simon Corporation. Her work has most recently been published on sites like TIME, ADT, Fiscal Tiger, Bankrate and Home Advisor, as well as many other websites and blogs around the world.

        Reviewed by

        • Nashalie Addarich
          Nashalie Addarich
          Insurance Editor

          Nasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to Reviews.com.