Homeowners Insurance Alabama: Top Companies 2021

Last modified: December 12, 2020

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.

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

  • Dwelling coverage: Under this option, you will receive the cost of rebuilding and repairing your home in case it is damaged due to a covered peril.  
  • Personal property coverage: This feature helps you replace the valuable furniture lost in a covered peril.
  • Liability protection: This feature plans provide you with protection against any claims resulting from damage and injuries caused to people and/or property. 
  • Guest medical protection: You will receive protection against any medical claim that arises after a guest gets injured on your property.

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: 

  • Pollutant cleanup and its remediation
  • Theft and damage due to vandalism
  • Damage is caused by forces of nature, including wind, water, hail, and fire
  • Replacement cost issues
  • The increased cost of construction

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: 

  • Automatic dwelling coverage: This insurance helps you cover the cost required to rebuild or replace your home in case the cost exceeds your coverage limits. 
  • Personal property replacement: You will get the replacement of any personal property item that is damaged due to a covered loss. 
  • Scheduled personal property: You can easily protect your expensive items with this coverage. 
  • Catastrophic coverage: This option gives policyholders access to earthquake and flood insurance in Alabama

The company also offers attractive discount options:

  • Loyalty: Policyholders who stay with Amica for 2 or more years 
  • Claim-free: You receive a discount if you go claim-free for a year 
  • E-discount: If you sign up to receive bills and policy updates over email 
  • Multi-Line: Applies if you bundle your home insurance policy with another Amica insurance policy 
  • AutoPay: You receive a discount after setting up automatic payments

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:

  • Claim forgiveness: Waives off the surcharge if a homeowner didn’t file a claim for 5 or more years
  • Declining deductibles: The company takes $50 off the deductible each year the policy is in force.
  • Cosmetic damage repair: It is included when a policyholder files a claim for functional damage.

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

  • Identity shield: Under this feature, you will get protection against identity theft and assistance replacing identity or travel documents.
  • Eco-rebuild: You will receive up to $25,000 for extra costs, after you file a claim, to repair, replace, or rebuild your home with green materials.
  • Contents replacement: This feature will let you receive reimbursement for the value of a new one when an item in your home is either destroyed or damaged.

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: 

  • Multi-policy discount: This discount option allows you to combine the company’s homeowners insurance with its auto policy or other insurance. That’s how you can save up to 25% – as claimed by the company.
  • Easy Pay Plan: By agreeing to automatic premium payments, you can save up to 5%.
  • Claim-Free Discount: For new customers who have no recent claims and switch to Allstate, the company offers a discount of up to 20%.

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.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

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.