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One of the first things you do after buying a home is shop for homeowners insurance. You want a homeowners insurance policy that won't cost an arm and a leg but will provide you with the coverage you require. We've combed through the best homeowners insurance in Alabama to find the cheapest policies in the state, and have outlined what homeowners should look for when choosing an Alabama home insurance policy.
These companies offer impressively cheap homeowners insurance in Alabama:
Homeowners moving into a new home may be surprised to learn they're going to pay less for insurance coverage. The insurance company does not expect to pay out many claims on a new house and will pass savings onto policyholders in the way of lower insurance premiums. Here are three Alabama home insurance providers offering low rates for newly built homes:
If you're in love with older homes, you're not alone. However lovely a grand old home may be, though, it is more likely to have the kind of issue not typically found in a new home. Older homes are prone to things like wood rot, mold, and leaky basements. For that reason, insurers tend to charge more for coverage. These three companies offer relatively competitive rates in Alabama:
If a home is damaged or destroyed, it's important to have enough coverage to make repairs or to rebuild. However, if you make a claim, your premiums are likely to increase for a time. If that happens in Alabama, these three insurers offer the lowest rates in the state:
The average cost of homeowners insurance in Alabama is $2,364, which is about 27% more expensive than the national average of $1,725.
|Average Rate Category||Alabama||National Average|
|New home construction||$1,289||$943|
|When making a claim||$2,547||$1,803|
Here are a few things that homeowners should be aware of when shopping for Alabama home insurance.
The average cost of homeowners insurance in the state is $2,364 per year, 27% higher than the national average. Still, it's worth noting the cost of housing in Alabama is the second lowest in the U.S. Depending on income, Alabamans may still be money ahead after paying a bit more for insurance.
Shop insurers: There are six types of policies specifically designed for non-mobile homes. They range from basic to wide-ranging coverage, and the best homeowners insurance companies offer them all. The trick is to buy the most comprehensive coverage offered at the lowest premium. It may take some shopping around to accomplish, but it can be done.
Seek discounts: Another important money-saving tactic is to take advantage of all possible home insurance discounts. Discounts cover just about everything, from bundling policies to installing an alarm system.
Raise deductible: Finally, if annual premiums put a strain on the budget, raising the policy deductible will lower the premium price.
According to FEMA, the state of Alabama declared 87 major disasters between 1953 and 2019, most of which involved severe storms and hurricanes. To ensure proper coverage, it may help to know the most common Alabama home insurance claims. Here's what they are:
Alabama has plenty of sunshine and a fair amount of rain, which helps explain water-related claims, including leaky basements and wood rot. There are also everyday issues, like water damage caused by broken appliances and plumbing issues.
In 2019, 25% of all homeowners insurance claims were a result of fire and lightning damage, according to the Insurance Information Institute. Fire does not top the list of homeowners insurance claims, but it is the most expensive issue insurance companies deal with.
Wind damage is another common Alabama claim. Whether it's caused by a hurricane, tornado, or thunderstorm, roofs and other exterior features of a home can take a beating due to wind damage.
Discounts like bundling, safe driver, and paying the annual premium upfront are all great, easy ways to save money. However, when it comes time to purchase homeowners insurance, it makes sense to make the most of all potential savings. For example:
The best homeowners insurance in Alabama rewards homeowners for installing a security system by offering a premium discount of 15% to 20%. Let's say the annual premium is $1,000. An alarm system can cut that amount by $150 to $200. In addition, an alarm system could lower the risk of a break-in, which in turn, would lower the number of claims.
Roof replacements are one of the more common claims insurers deal with. But upgrading a roof can provide an Alabama homeowner with one of their steepest home insurance discounts. The average discount in the state for homeowners with an upgraded roof is nearly $400, primarily because there is less risk it's going to need to be replaced anytime soon.
Not only can an electrical upgrade help protect a home from fire, but it will also knock an average of $250 off an Alabama homeowner's premiums each year.
Insurance companies take many factors into account as they determine premiums. They include things like the area crime rate and proximity to a fire station.
Here are the five cheapest cities in Alabama for homeowners insurance:
|City Name||Average Home Insurance Rate|
Here are the five most expensive cities in Alabama for homeowners insurance:
|City Name||Average Home Insurance Rate|
|Bayou La Batre||$4,799|
The best homeowners insurance in Alabama provides comprehensive coverage at a price the homeowner can afford. Most importantly, the right policy can help a homeowner sleep better at night, knowing there's a plan in place to protect one of their biggest financial investments.
Our Insurance Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
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