Best and Cheapest Homeowners Insurance in Alabama for 2025
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
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#1 | $92 | A+ | Affordable Rates | Allstate |
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#2 | $97 | A | Customizable Policies | Farmers |
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#3 | $101 | B | Customer Service | State Farm |
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#4 | $105 | A++ | Financial Stability | Auto-Owners |
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#5 | $109 | A | Variety Discounts | American Family |
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#6 | $114 | A+ | Competitive Pricing | Nationwide |
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#7 | $118 | A++ | Military Focused | USAA |
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#8 | $122 | A+ | Senior Discounts | The Hartford |
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#9 | $127 | A | Customizable Coverage | Liberty Mutual |
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#10 | $131 | A++ | Weather Protection | Travelers |
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.
What are the best homeowners insurance rates in Alabama for a $200K dwelling?
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.
| Insurance Company | $200k Policy | $300k Policy) | $500k Policy |
|---|---|---|---|
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$92 | $138 | $215 |
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$109 | $155 | $238 |
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$105 | $150 | $230 |
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$97 | $145 | $225 |
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$127 | $190 | $300 |
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$114 | $170 | $260 |
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$101 | $145 | $235 |
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$122 | $185 | $295 |
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$131 | $200 | $310 |
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$118 | $175 | $290 |
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.
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.
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.
How do Alabama property crime statistics affect homeowners insurance premiums?
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.
Alabama disaster statistics
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.
| Insurance Company | Available Discount |
|---|---|
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Multi-Policy (Bundling Home And Auto), New Homebuyer, Automatic Payments, Loyalty, Protective Devices (E.G., Security Systems) |
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Multi-Policy, New Homebuyer, Automatic Payments, Loyalty, Smart Home Technology |
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Multi-Policy, Protective Devices, Payment History, Mortgage-Free, Green Home |
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Multi-Policy, Protective Devices, New Home, Roofing Materials, Affinity Groups |
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Multi-Policy, New Homebuyer, Automatic Payments, Early Shopper, Protective Devices |
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Multi-Policy, Protective Devices, Claim-Free, Home Renovation, Roof Rating |
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Multi-Policy, Home Alert Protection, Roofing Materials, Claim-Free |
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Multi-Policy, Protective Devices, Retiree Credit, Claim-Free |
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Multi-Policy, Protective Devices, Green Home, Loss-Free, Early Quote |
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Multi-Policy, Protective Devices, Loyalty, Claims-Free |