The 4 Best Alabama Homeowners Insurance Companies

Alabama has more inland waterways than any state in the U.S., but its subtropical climate makes it vulnerable to major weather upheavals ranging from tornadoes to hurricanes. This results in an average homeowners insurance premium of $2,314 annually, which is about $1,086 more than the national average, according to Insurance.com.

Although the premiums are high, the coverage is enough to protect your assets. You can search for a provider that offers the protection specific to your living situation and budget. To help with your search, we’ve outlined our picks for the top Alabama homeowners insurance providers and included an online quote tool so you can start getting accurate estimates for policies in your area.

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    In this article

      Our Top Picks for Best Homeowners Insurance in Alabama

      Allstate

      Allstate is a great option for homeowners insurance in Alabama because of its flexible policies, multiple discount choices and online educational tools and resources. Both J.D. Power and Consumer Reports have given Allstate a good rating for customer satisfaction and service.

      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

      An Allstate policy can be supplemented with additional coverage to protect your most valuable personal assets at home or the office. You can save at least 30 percent on your Allstate policy if you combine your homeowners policy with auto insurance, sign up for paperless billing or insure a new or recently renovated home. Allstate offers additional financial advantages for new customers and retirees.

      Allstate offers high-quality policy management tools. One of Allstate’s key features is the digital locker, which is an electronic visual inventory of your home possessions and assets. It also provides an easy way to submit claims. Allstate’s online resource center also has an extensive library of articles, videos and specific calculators to help you get answers to essential questions you may have.

      State Farm

      State Farm writes over 30 percent of the state’s policies, giving the company a large share of the market. The advantage State Farm has over its competitors is that policies with basic coverage are very affordable and customers can select additional protections to meet their specific home and budget needs.

      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 also has standard policies for nearly every type of Alabama residence, including single-family homes, farms and ranches, condos and mobile homes.

      You can have peace of mind knowing that State Farm has one of the largest and most extensive claims networks in the world. You can file a claim via the 24-hour claims hotline, online, in person with a local agent or by using the State Farm Pocket Agent mobile app. State Farm’s Premier Service Program is another essential tool that directly connects you with experienced contractors in your area to make repairs and restore your home after a covered loss.

      One of State Farm’s best features is its online resources, including tutorials on home security and shopping for a house. These online tools give State Farm an advantage over many insurance companies.

      USAA

      The company offers its members numerous benefits and discounts, including free ATMs nationwide for banking customers, lower rates on auto loans and personal loans, and affordable insurance 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

      USAA was founded in 1922 by a group of Army officers to provide quality, affordable insurance products to the U.S. military community and their families. Today, the company has 12.4 million members and is one of the largest shareholders of the Alabama homeowners insurance market, thanks to the state’s big military population. In fact, USAA is the fourth-largest homeowners insurance writer in Alabama, with 8 percent of the market share.

      USAA is backed by an A++ financial rating from A.M. Best, gets 4 out of 5 stars from J.D. Power and boasts a strong history of military values, so you know you can trust the service you will receive.

      USAA policies come with features that other providers typically charge extra for. For example, the company offers full replacement cost coverage, allowing you to rebuild your home after a loss at current construction costs. USAA also provides up to 75 percent of the insured value of your home to replace personal belongings and up to $5,000 in identity theft coverage at no extra cost. The only requirement is that you or a family member must be an active or retired member of the U.S. military.

      Alfa Mutual

      Alfa understands the unique insurance needs of Alabama homeowners because it is based in the state. It is a smaller company that is familiar with the peculiarities of Alabama. An Alfa minimum policy protects your home and its contents with HO-3 and HO-5 coverage options for homeowners. Options are available for extra replacement cost coverage, personal liability coverage and valuables endorsements.

      Also, Alfa provides discounts for bundling auto and home insurance, installing safety devices like deadbolt locks and smoke alarms and being claims-free. You can opt for higher deductibles to help you save even more money. Another way to save is with the Legacy Discount, which allows homeowners’ children to save up to 20 percent on their policy. In Mobile and Baldwin counties, Alfa offers premium discounts for residents who have built or repaired their homes with materials that can better withstand hurricanes and other weather events.

      The online resource center on Alfa’s website has essential tips for safeguarding your home, lowering your costs and understanding your rights as an Alabama homeowner.

      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.

        How much is homeowners insurance in Alabama?

        The average homeowner’s insurance premium is $2,314. This is 88 percent higher than the national average. Of course, the cost will vary by city and depends on the rate factors listed below.

        Alabama Rate Factors

        With its subtropical climate and large number of inland waterways, Alabama is prone to a wide variety of weather events ranging from tornadoes to hurricanes. There is typically a large amount of rain and wind, which can combine to increase the potential for weather-related damage.

        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