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Homeowners Insurance Alabama: Top Companies

Last modified: Sep 29, 2022

Homeowners insurance in Alabama is not mandated by the state, but it is highly recommended that you obtain it. 

Besides, you have built your home sweet home with a lot of hard work. Of course, you want to keep it safe against all kinds of damage and ensure that you don’t suffer subsequent financial losses. 

Our guide provides a detailed look at the best homeowners insurance in Alabama.

If you are looking for affordable homeowners insurance outside of Alabama - make sure to check out our list of best homeowners insurance companies in the US.

Is Homeowners Insurance Required in Alabama?

Home insurance in Alabama isn't state-mandated. Many lenders though require the purchase of insurance on your home. 

What Does Alabama Insurance Cover?

You have the following home insurance coverage options in Alabama

Mobile Home Insurance in Alabama

Alabama has the sixth-highest number of mobile homes per capita. Mobile home insurance in Alabama mostly includes liability coverage, which lets you pay for the damages you caused to people or property.

Alabama Home Insurance Rates By City

The insurance rates vary from city to city. In the table below, have a look at different Alabama home insurance rates by major cities: 

City Average Cost
Birmingham $1,604
Montgomery $1,497
Huntsville $1,583
Mobile $2,407
Tuscaloosa $1,592
Hoover $1,352
Dothan $1,666

 

Common Causes of Home Insurance Losses in Alabama

Some of the most common causes of home insurance claims in Alabama are: 

Who Has the Cheapest Homeowners Insurance in Alabama?

At $820 per year, Cincinnati Insurance offers the cheapest homeowners insurance in Alabama

Here is a chart with the two cities in Alabama that have cheap homeowners insurance rate: 

City Average Pricing
Helena $1,330
Alabaster $1,398

 

In the table below, you will find some of the best homeowners insurance along with a rough estimate of their annual premium. Read on to see what is the average rate of home insurance in Alabama.

Best Homeowners Companies Alabama

Company  Best For Coverage Discounts Pricing
Amica

  • Anyone looking for a quick and easy claims process 
  • Anyone under 30 whose parents have been insured with Amica for 5 consecutive years

  • Automatic Dwelling Coverage
  • Personal Property Replacement
  • Scheduled Personal Property
  • Catastrophic Coverage

  • Policy Discount
  • Safety Discount

  • $2,000 annually

Farmers

  • People looking for a wide range of discounts

  • Claim Forgiveness
  • Cosmetic Damage
  • Declining Deductibles
  • Eco-Rebuild
  • Identity Shield
  • Contents Replacement

  • Newer Home 
  • Non-Smoking 
  • Discounts for recent heating or plumbing upgrades
  • Roofing Materials 
  • Home Safety 

  • $1,445 annually

Allstate

  • Tech-savvy people who want an easy-to-use website and digital tools
  • People who want to work with a company with decent customer satisfaction ratings

  • Dwelling coverage
  • Other structures coverage
  • Personal property coverage
  • Additional living expenses coverage
  • Personal liability coverage
  • Guest medical protection coverage

  • Multi-policy 
  • Loyalty 
  • Protective Device 
  • Home Buyer 
  • Storm Shutters

  • $2,028 per annum

Cincinnati Insurance

  • People who want to work with a financially stable company

  • Higher replacement cost
  • Personal property coverage
  • Extended limits for water damage
  • Identity theft

  • Multiple Policy Bundling 
  • New Homes 
  • Claims-Free History 
  • Security System and Burglar Alarm 

  • $820 per year

MetLife

  • People who want to get a policy with a company with good customer ratings 

  • Replacement cost coverage
  • Contents replacement coverage 

  • Bundle 
  • Fire/Theft Prevention

  • $2,042 per annum

USAA

  • People who want to enjoy good discounts

  • Replacement cost dwelling and personal property coverage
  • Unlimited loss-of-use coverage
  • Home protector coverage
  • $500,000 in personal liability coverage
  • $5,000 in medical payments to other coverage
  • Deductible options up to $10,000 to keep your rates down

  • Auto and Home Combination 
  • Membership Loyalty 
  • Impact-Resistant Roof 
  • Automatic Detection Devices 
  • ADT Home Security Systems 

  • $2,684

Detailed Reviews

Amica 

Amica insurance in Alabama enjoys great popularity among homeowners because of its impressive coverage plans. Here is a brief look: 

The company also offers attractive discount options:

The company also encourages homeowners to install safety gadgets in their houses. The safety discounts apply if homeowners install automatic detection devices (like temperature monitoring system) and alarm systems (sprinkler system, a burglar alarm, or fire alarm).  

Farmers 

Farmers Insurance in Alabama is a renowned company with great coverage plans and amazing discounts. The list of discounts offered by the company is already mentioned in the table above. 

Here, let’s have a look at the coverage plans provided by the company:

Depending on the availability in your state, you can also add the following to your policy:

Allstate 

Allstate Insurance in Alabama is another renowned company that is famous for its credible performance and its ability to pay off claims. 

In addition to providing standard coverage, it offers other extensive coverage options that are listed in the table above. 

Below is a brief peek into the amazing discounts provided by the company: 

Cincinnati Insurance Company

Cincinnati Insurance in Alabama provides standard home insurance as well as additional policy options (see the table above for more details). It also has some great discounts for homeowners. 

The price of the insurance plans is around $820 per year, which makes the company the cheapest option among other companies. Cincinnati has a dedicated customer care center where you can talk to an agent regarding any query. 

MetLife 

Another company in Alabama that you can easily rely on for your home insurance is MetLife. It has a great customer satisfaction rating and impressive coverage plans. 

Metlife provides discounts that are similar to what other companies offer. And while it isn’t the cheapest option available, it is not the most expensive company either.   

USAA 

Alabama home insurance by USAA has brilliant coverage plans for all kinds of homeowners. USAA is given an A++ rating from AM Best. It is a financially stable company that has the ability to promptly pay off claims. 

The Final Word

This comprehensive list of homeowners insurance in Alabama provides you with all the relevant information you need to decide which company to choose for your home insurance. 

When you are spending thousands of dollars on your home purchase, it is important to get your house insured against possible losses, so we really recommend you to buy home insurance. You’ll be happy you did.

FAQ

How much is homeowners insurance in Gulf Shores, AL?

Gulf Shores, AL homeowners insurance is roughly between $833 and $1,165.

Does homeowners insurance cover lightning in Alabama?

Yes, homeowners insurance in Alabama protects you against several natural disasters including lightning.

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