Cheapest and Best Homeowners Insurance in Alabama As Rated by Customers in 2022
How We Found the Best Homeowners Insurance Companies in Alabama
The last thing you want to worry about is whether or not your homeowners insurance company is reliable, but it’s tough to know how the company will perform until you file a claim yourself. So, how do know if an insurance company will be there when you need them most? That’s where Clearsurance can help. Thanks to thousands of customer ratings and reviews, we’ve compiled a rankings of the best Alabama homeowners insurance companies.
In the table above, you can sort through every homeowners insurance company ranked on Clearsurance and evaluate and compare the best Alabama home insurance companies. Next to each insurer you’ll find the company’s rating, which is based exclusively on the reviews and ratings provided by customers. Note: Only those companies with at least 25 homeowners insurance reviews are eligible to appear in the best Alabama homeowners insurance rankings.
Interested in learning more about one of the companies ranked as one of the best homeowners insurance companies in Alabama? Visit the company’s profile page where you’ll learn about the company, additional coverages and potential discounts offered. On the company’s page, you can also read homeowners insurance reviews to see what other policyholders have to say about the home insurance company.
On this page:
- Best homeowners insurance rates in Alabama for a $200K dwelling
- Best homeowners insurance rates in Alabama for a $400K dwelling
- Alabama property crime statistics
- Alabama disaster statistics
Which home insurance companies average the cheapest homeowners insurance rates in Alabama? The table below shows average rates for the five largest home insurance companies in Alabama by market share. For a $200K dwelling, Allstate offers the cheapest average homeowners insurance rates in Alabama.
With the overall coverage amount being limited, you may consider lower deductibles and limited personal property coverage. Depending on where you live and other factors, though, you may want to assess different liability coverage options. For example, if you have a trampoline or pool, you could face more risks, but some policies may not offer full liability coverage for those specific additions to your home.
When you do your research and talk to an insurance agent as needed, you can find the right coverage plan for your needs. When you combine your homeowners policy with auto insurance coverage under the same company, you can save even more on both policies with multi-policy discounts.
|Company||Average rates for $200K dwelling|
|State Farm Insurance Company||$1,837|
|Travelers Companies, Inc.||$2,260|
These rates are based on a $200,000 dwelling with the following coverage limits: $100,000 personal property, $20,000 loss of use, $20,000 other structures, $300,000 liability and $5,000 medical. The policy has a $1,000 deductible. The house used for the profile was constructed in 2004 and the individual had a good insurance score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.
USAA, a military only insurance company, has the cheapest average homeowners insurance rates in Alabama for a $400K dwelling. Of course, if you're not in the military or a military family, Allstate would be the next in line for the lowest cost of homeowners insurance for a $400K property. Military widows and children can use USAA as long as the military member had a membership before they died. Otherwise, family members are treated as civilians. The table below shows the average rates for the five largest home insurance companies in Alabama.
|Company||Average rates for $400K dwelling|
|State Farm Insurance Company||$2,888|
|Travelers Companies, Inc.||$3,987|
These rates are based on a $400,000 dwelling with the following coverage limits: $200,000 personal property, $40,000 loss of use, $40,000 other structures, $300,000 liability and $5,000 medical. The policy has a $1,000 deductible. The house used for the profile was constructed in 2004 and the individual had a good insurance score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.
Theft and vandalism or malicious mischief are among the 16 perils a standard homeowners insurance policy protects you from. So, how does crime in Alabama compare to other states around the country? The FBI published the following statistics on crime in Alabama for 2016:
- Property crime - 143,362
- Burglary - 34,065
- Larceny theft - 97,574
All three statistics for Alabama, when compared to the national average rate per 100,000 inhabitants, rank higher than the national average.
Weather-related incidents are typically among the costliest homeowners insurance claims. FEMA has published statistics for each state since 1953. Data is updated through August 2018. Here’s a look at the Alabama federally declared disasters since 1953:
- Severe storm - 36
- Hurricane - 19
- Flood - 10
- Fire - 9
- Tornado - 6
- Snow - 1
How homeowners insurance rates are calculated in Alabama
Ever wonder why you pay what you do for home insurance? Some things may be obvious, like the age of your home. But other factors that contribute to the price of homeowners insurance may not be as obvious. Here’s a list of some of the things homeowners insurance companies consider when quoting you a rate:
- The level of coverage required
- The size of your mortgage
- Your credit score
- The square footage of your home
- The geographic location of your home in Alabama
- The condition of your home
- The age of your home
- The proximity of your home to a fire station
- Your previous claims record
- The amount of your deductible
- Optional add-ons like umbrella insurance
Zillow estimates that homeowners can expect to pay approximately $35 each month for every $100,000 of your home's value.
How Clearsurance rates and ranks the best homeowners insurance companies in Alabama
Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:
- Customer Service
- Claim service
- Likelihood to renew
The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.
The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings.
Homeowners insurance guide
Your home is likely your most valuable asset, making it that much more important that you insure your home with one of the best Alabama homeowners insurance companies. But beyond just picking a company, it’s crucial to have the right coverage and to understand that coverage. Did you know that a standard homeowners insurance policy has six types of coverage? And did you know that there are usually 16 types of perils found in a homeowners insurance policy?
At Clearsurance, we want to make sure you have a strong understanding of your homeowners insurance coverage and what it all means. Check out our homeowners insurance guide to become a smarter insurance customer. And for more educational content on other homeowners insurance topics, check out our homeowners insurance blog!