The Best and Cheapest Homeowners Insurance Companies in Alabama
We obtained thousands of quotes from homeowners insurance companies throughout Alabama in order to find the best homeowners insurance company for the majority of people. While many people shop for insurance based solely on price, it's better to judge a company based on its policy features, reputation for customer service, and online experience rather than just its rates.
The best price we found for standard home insurance was $821 per year. However, when making our recommendations for the best homeowners insurance in Alabama, we considered more than just price.
Best homeowners insurance for most people: MetLife
MetLife provides the best homeowners insurance in Alabama for the vast majority of people. MetLife's standard homeowners policy is affordable while covering a variety of industry-standard perils that could affect average homeowners, such as fire, wind, and theft.
By upgrading to MetLife's Platinum homeowners insurance, you can add features like water backup protection and comprehensive perils protection to your coverage in addition to MetLife's basic offerings. We believe that MetLife's replacement cost upgrades are the best endorsements for many Alabamians.
MetLife's average cost of home insurance is about $1,154 per year, which is nearly 40% less than Alabama's statewide average.
The online experience at MetLife is less optimized than that of many of its competitors. Despite its limited online presence, MetLife maintains high levels of customer satisfaction, according to data from the National Association of Insurance Commissioners (NAIC). MetLife receives far fewer complaints than its size suggests, according to the NAIC's analysis of the number of complaints the insurer is responsible for.
Most affordable homeowners insurance: Cincinnati Insurance Co.
Cincinnati Insurance offers the most affordable homeowners insurance in Alabama, with policies costing an average of $821 per year. This is 56% less than the national average for homeowners insurance in Alabama.
You may be able to reduce the cost of your homeowners insurance with Cincinnati Insurance if you qualify for any of the company's discounts, which include:
- Combining insurance with another policy
- Having a home that is a decade or less old
- Putting in an alarm system that is monitored by a central station
- Having a clean insurance history
While standard homeowners insurance from Cincinnati Insurance should be adequate for the majority of property owners, there are a few endorsements you can add to your policy for additional protection. You can purchase private flood insurance through Cincinnati Insurance in addition to protections against water backups and electronic equipment breakdown.
One disadvantage of Cincinnati Insurance could be its scarcity. According to filings with Alabama's Department of Insurance, Cincinnati does not provide coverage below Interstate 10 in Baldwin County, the state's largest county.
Best for complete coverage: COUNTRY Financial
Consider COUNTRY Financial's coverage if you want to get the most out of your homeowners insurance, especially if you're looking for manufactured home insurance. COUNTRY offers a variety of add-on features to your standard policy, including $25,000 in identity theft coverage and restitution services, as well as water backup protection.
COUNTRY also provides replacement cost coverage for your home and personal property for as little as 12% of your premium. You can also purchase an extended form of replacement cost coverage, which reimburses a loss even if it exceeds your policy's limit by up to 25%.
The average cost of a standard homeowners insurance policy from COUNTRY is $940 per year, which is roughly half of the average price in Alabama. COUNTRY offers a variety of discounts to lower costs if you want to save money on your annual premium. You could save money by doing the following:
- Bundling your homeowners insurance with another policy
- Having a roof that was replaced within the last ten years
- Putting in a roof made of hail-resistant material
- Obtaining a wind mitigation certification for the structure of your home
Notably, COUNTRY has the best customer service of any company in our study. It only receives a fraction of the expected number of complaints based on its size.
Best for online shopping: Nationwide
The online experience provided by Nationwide is the best of the homeowners insurance companies in Alabama that we surveyed. If you want to buy coverage quickly without speaking with an agent or visiting a local office, you can request a quote from Nationwide and personalize each aspect of your coverage in under 10 minutes.
Nationwide homeowners insurance is some of the most affordable coverage available in Alabama. The average cost of Nationwide homeowners insurance is about $1,409, which is about 25% less than the statewide average. Furthermore, there are numerous ways to earn discounts, including:
- Bundling insurance with another policy
- Putting in smoke detectors in your home
- Remaining claims-free
- Renovating your home's interior systems
- Increasing the lifespan of your roof
- Possession of a home purchased within the last year
If you're concerned about the effects of severe weather or other potentially disastrous perils, Nationwide can provide replacement cost coverage. Nationwide also provides an extended replacement cost option, which may cover up to 20% more than your limits in the event of a loss.
Homeowners insurance companies with the best customer service
We compared the customer service of Alabama's homeowners insurance companies using NAIC complaint data and J.D. Power's customer satisfaction survey, which rates companies on a five-point scale.
COUNTRY Financial, USAA, and Cincinnati Insurance provided the best customer service, according to our research. Both Alfa and Centauri have a complaint index of 0.00, but their market shares are too small to be compared with large national insurers.
Company | NAIC Value | J.D. Power | AM Best |
State Farm | 0.20 | 4/5 | A++ |
Alfa | 0.00 | Not rated | A |
Allstate | 0.31 | 3/5 | A+ |
USAA | 0.15 | 5/5 | A++ |
Farmers | 0.39 | 3/5 | A |
Travelers | 0.30 | 2/5 | A++ |
Liberty Mutual | 0.53 | 2/5 | A |
Nationwide | 0.31 | 2/5 | A+ |
Auto-Owners Insurance Co. | 0.21 | 4/5 | A++ |
COUNTRY | 0.13 | 3/5 | A+ |
Cincinnati Insurance | 0.18 | Not rated | A+ |
MetLifeC | 0.19 | 3/5 | A |
Centauri Insurance | 0.00 | Not rated | Not rated |
Cheapest options for homeowners insurance in Alabama
In Alabama, the average cost of homeowners insurance is around $1,850 per year. This is more expensive than the average cost of coverage in the United States, which we discovered to be $1,083 per year. Furthermore, we found no ZIP codes where the average cost of homeowners insurance was lower than the national average.
For most people in Alabama, the cheapest homeowners insurance is Cincinnati Insurance, which offers coverage options for around $820 per year. Auto-Owners Insurance, on the other hand, is the most expensive homeowners insurance company, with coverage costing more than $5,000.
Most common homeowners insurance perils in Alabama: Tornadoes, hurricanes, lightning
Alabama's location along the Gulf of Mexico and in the Dixie Alley, a circuit of states with storm activity comparable to the well-known Tornado Alley, means that its residents are subjected to frequent and devastating severe weather.
While most homeowners insurance policies cover wind damage and lightning strikes, your coverage may be limited by provisions in your policy. To ensure that your home is protected in the event of a property loss, it's important to understand how your homeowners insurance covers the perils to which you're most vulnerable.
Is wind damage covered by homeowners insurance?
Wind damage is typically covered as an insured peril in your homeowners insurance policy. This policy covers gusts as well as wind from tornadoes and hurricanes. According to the National Weather Service, Alabama experienced at least 65 tornadoes in 2019, so make sure your coverage is up to date.
If it's available in your area, you should think about getting replacement cost coverage. Remember that most homeowners insurance policies include actual cash value coverage, which accounts for the monetary depreciation of your home before paying out compensation.
If you live in a hurricane-prone area of the state, you may also need to consider flood protection. Although policies cover wind damage from a hurricane, flood damage is almost never covered by standard homeowners insurance policies. The National Flood Insurance Program, as well as some private insurers, sell policies.
Does homeowners insurance cover lightning?
According to NOAA reports, lightning strikes are common in Alabama. Lightning strikes are typically listed as a covered peril in most homeowner's insurance policies. In fact, your policy may provide coverage for:
- Strikes that are direct
- Near misses that cause property damage
- Lightning strikes trees, causing them to fall.
- Lightning-caused fires
- Power outages caused by ground strikes
The amount of coverage you receive, as with other perils, is determined by the limits of your policy.
Alabama insurance rates: city-by-city breakdown
We were able to determine the average cost of coverage in Alabama's 50 most populous cities thanks to our analysis of the best homeowners insurance in Alabama. In the table below, we've shown each city's rates as well as the difference between them and the statewide average.
Foley is the most expensive city in Alabama for homeowners insurance, with coverage costing an average of more than $2,700 per year. Pelham, on the other hand, has the lowest cost of homeowners insurance in the state. In this area, annual coverage costs just under $1,300.
City | Average cost | % from AL average |
Birmingham | $1,604 | -13% |
Montgomery | $1,497 | -19% |
Huntsville | $1,583 | -14% |
Mobile | $2,407 | 30% |
Tuscaloosa | $1,592 | -14% |
Hoover | $1,352 | -27% |
Dothan | $1,666 | -10% |
Auburn | $1,503 | -19% |
Decatur | $1,653 | -11% |
Madison | $1,557 | -16% |
Florence | $1,734 | -6% |
Phenix City | $1,584 | -14% |
Prattville | $1,504 | -19% |
Gadsden | $1,797 | -3% |
Vestavia Hills | $1,388 | -25% |
Alabaster | $1,398 | -24% |
Opelika | $1,543 | -17% |
Enterprise | $1,667 | -10% |
Bessemer | $1,710 | -8% |
Daphne | $2,648 | 43% |
Athens | $1,662 | -10% |
Northport | $1,582 | -14% |
Homewood | $1,646 | -11% |
Pelham | $1,289 | -30% |
Trussville | $1,479 | -20% |
Fairhope | $2,718 | 47% |
Anniston | $1,747 | -6% |
Albertville | $1,918 | 4% |
Prichard | $2,409 | 30% |
Oxford | $1,728 | -7% |
Mountain Brook | $1,383 | -25% |
Helena | $1,330 | -28% |
Troy | $1,607 | -13% |
Foley | $2,728 | 47% |
Tillmans Corner | $2,663 | 44% |
Selma | $1,815 | -2% |
Center Point | $1,749 | -5% |
Cullman | $1,797 | -3% |
Millbrook | $1,534 | -17% |
Hueytown | $1,735 | -6% |
Talladega | $1,778 | -4% |
Saraland | $2,516 | 36% |
Alexander City | $1,594 | -14% |
Hartselle | $1,689 | -9% |
Scottsboro | $1,901 | 3% |
Calera | $1,400 | -24% |
Ozark | $1,668 | -10% |
Muscle Shoals | $1,747 | -6% |
Gardendale | $1,494 | -19% |
Fort Payne | $1,894 | 2% |
Methodology
We obtained quotes from 13 of Alabama's largest homeowners insurance providers for this survey. Using a sample profile purchasing coverage for a $141,300 property built in 1981, we obtained quotes from every ZIP code in the state. These figures represent the median home value in Alabama as well as the median year in which owner-occupied houses were built in the state.
We obtained quotes from the following businesses:
- State Farm
- Alfa
- Allstate
- USAA
- Farmers
- Travelers
- Liberty Mutual
- Nationwide
- Auto-Owners Insurance Co.
- COUNTRY Financial
- Cincinnati Insurance Co.
- MetLife
- Centauri Specialty Insurance Co.
The insurance rate data used in LowCostInsurance analysis came from Quadrant Information Services. These rates were obtained publicly from insurer filings and should only be used for comparison purposes—your own quotes may differ.