Whether you live near the Gulf Coast and worry about property damage during a hurricane or you own a home further up the state in Huntsville and worry about a summer tornado destroying your roof, purchasing homeowners insurance in Alabama is a smart decision to protect your house and give you peace of mind.
Since there are so many home insurance providers on the market, the This Old House Reviews reviewed a variety of insurers on customer service, reputation, coverage, pricing, and unique benefits to compile a list of the best homeowners insurance companies in Alabama.
To give you an idea of what home insurance pricing looks like across Alabama, we included sample quotes for three houses in different cities within the state. However, because home insurance rates are specific to your property’s details, personal information, and ZIP code, we recommend getting quotes from a few different providers.
3 Best Home Insurance Providers in Alabama
Here are the top providers of homeowners insurance in Alabama:
Allstate: Best for Coverage Options
We found Allstate to be the top home insurance company in the United States and named it ‘Best Overall’ for Alabama residents. It scored a 98.1 out of 100 in our review, performing exceptionally well in key categories such as customer service, reputation, coverage, and additional benefits. We recommend this provider to homeowners in Alabama looking for an easy sign-up process, comprehensive coverage options, and 24/7 customer service availability.
Get a free homeowners insurance quote online by filling out this form on Allstate’s website.
Here are a few more reasons to consider Allstate:
- Provides a discount for homes with a FORTIFIED certification from the Institute for Business and Home Safety (IBHS)
- Doesn’t require a Social Security number or phone number during its online quote process
- Offers an add-on to help pay for building code regulations and permits during repairs or rebuilding
Get Your Free Home Insurance Quote: Allstate Home Insurance Quote
Learn More: Allstate Home Insurance Review
*AM Best ratings accurate as of August 2023
Liberty Mutual: Best Discounts
- J.D. Power Rating: 805/1000
- AM Best Rating: A
Liberty Mutual offers the most affordable plan prices out of the providers in this review. We gave it a 95.1 out of 100 and recommend it for its extensive list of discount opportunities that are often available to homeowners. For example, customers can get 10% off their policy just for shopping online.
Customers can also receive other discounts from this insurer for items like shopping early before your policy expires, recently replacing your roof, recently purchasing your home, having a claims-free history, and more. Get a quote from Liberty Mutual to determine what discounts are available to you.
Here are some additional benefits offered by Liberty Mutual:
- Sometimes provides a unique employment discount in Alabama for teachers, students, retirees, and military service members
- Offers a low deductible option of $500 to minimize out-of-pocket expenses during a claim
- Has a live chat available during the quote process
Travelers: Most Experience
Travelers scored a 93.6 out of 100 in our review and stands out for its more than 160 years of experience in the insurance industry. We were also impressed with its deductible options. It doesn’t require a separate deductible for wind, hail, or tropical storms, so you’ll only have to worry about paying one deductible—no matter what type of event damages your property. Travelers also offers nine customizable deductible options from $1,000 to $50,000 to help lower your premium.
Get a quote from Travelers to check prices based on your deductible choice.
Travelers also stands out as one of the best home insurance companies in Alabama for the following reasons:
- Features resources on its website that help homeowners prepare for natural disasters, such as wildfires, hurricanes, and earthquakes
- Provides a decreasing deductible add-on, which credits you with $100 towards your deductible each year you don’t file a claim
- Offers the most customizable personal property coverage options (25%–100% of the dwelling limit) compared to Allstate and Liberty Mutual
Whether you lean towards Allstate for its overall coverage and unique add-ons, Liberty Mutual for affordable premiums and discount opportunities, or Travelers for its experience in the home insurance industry and impressive deductible options, checking prices from each provider is a sure way to get the best deal. We ultimately recommend getting quotes from all three providers to compare offers and pricing based on your location and personal details.
Compare Homeowners Insurance Companies in Alabama
*Based on sample quotes we received on a 1,800-square-foot single-family house in Birmingham, Alabama
**Figures pulled from the companies’ Better Business Bureau (BBB) profiles as of May 12, 2021
Alabama Homeowners Insurance Coverage
Understanding each coverage type in your homeowners insurance policy can help you make sure you purchase the right coverage limits. Below are the six categories you should be familiar with before finalizing your policy:
- Dwelling coverage—Since getting your house rebuilt or repaired after it receives damage from a covered peril can be extremely costly, dwelling coverage pays up to your agreed limit to return your home to the state it was in before the incident. Most homeowners purchase coverage equal to or greater than their home’s estimated value to ensure all rebuilding costs are included if it’s ever completely ruined.
- Other structures coverage—This home insurance coverage protects structures or buildings that aren’t considered part of your home, such as a fence or detached garage. The coverage limit is typically around 10% of the total dwelling limit.
- Personal property coverage—If your personal belongings are ruined or stolen, this coverage will pay to replace them or reimburse you for their depreciated value. The limit for this category is usually around 75% of dwelling, but Travelers lets you customize it anywhere from 25% to 100%.
- Personal liability coverage—If you’re responsible for someone getting injured on your property, you could be liable for any medical expenses or legal fees associated with the accident. This coverage ensures your provider will pay those costs up to the agreed limit in your policy, which is typically around $100,000–$300,000.
- Medical payments to others coverage—This covers around $1,000–$5,000 for the medical bills of visitors on your property who get injured from an accident that you’re not responsible for.
- Loss of use coverage—After a damaging peril, your home may be left uninhabitable, forcing you to stay at a hotel and accrue additional living expenses, such as hotel fees or meal costs. Your insurer will cover those expenses under a loss of use claim.
Factors To Consider Before Buying Homeowners Insurance
Here are some other factors to consider when choosing a provider:
- Deductibles—You’ll owe your deductible each time you file a claim before your insurer begins making payments. For the cheapest homeowners insurance premiums, you can increase the deductible on your policy, but it could result in high out-of-pocket spending after an unexpected event. Additionally, you may have a separate deductible to pay during a claim related to wind, hail, hurricanes, or tropical storms.
- Additional coverage—Customizing your coverage with endorsements or add-ons is a great way to ensure the complete replacement of your home or property after a disaster. For example, you can purchase earthquake coverage from Liberty Mutual for extra protection on damage related to earthquakes, or you could get additional coverage for extended roof repairs from Allstate.
- Location—If you live near the Alabama coast, getting a policy may require a few extra steps. For example, Allstate’s online quote form redirects you to speak to an agent for extra help if your home is near the Gulf Coast. You can also expect prices to be higher in this area, since coastal properties have a higher risk of damage from storms or hurricanes compared with houses deeper in the state.
FAQs About Homeowners Insurance in Alabama
Our Rating Methodology
The This Old House Reviews Team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.
With that in mind, we created an objective rating system to score each home insurance company. Here’s what that review process looked like:
- We analyze the information on each company’s website. This allows us to determine what products and services are offered by each home insurance provider.
- We get a sample quote from the companies by either talking to a sales representative or by using the online quote tool. This tells us what a policy looks like and costs.
- We test customer service by talking to a company representative, finding out their hours of operation, and determining what technological features are available for customers.
- We update all of this information on a continuous basis, storing it in a proprietary database that allows us to compare dozens of home insurance companies against each other.
With this data, we created a rating methodology to score each home insurance company. Our rating system is a weighted, 100-point scale based on the following factors:
- Coverage (30): We rated home insurance companies higher if they offered the six main types of homeowner protection—dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage.
- State availability (7.5): Companies scored higher if they covered more states than their competitors.
- Customer service (15): This factor is based on our communications with the company representatives, as well as the companies’ claims and quotes processes, availability throughout the week, and customer service information found on their websites.
- Technology (12.5): Technology can increase the efficiency of filing and tracking home insurance claims. Companies scored higher if they had technology options like mobile apps and online chat functions.
- Reputation (20): We gauged trustworthiness based on years of experience and Better Business Bureau ratings.
- Additional benefits (15): Companies that offered optional features, like discounts and endorsements, scored higher than competitors that didn’t.
The This Old House Reviews Team has a full-time researcher who collects and regularly updates data points from every company to help us compare them on key factors such as coverage, service, and dependability.
To share feedback or ask a question about this article, send a note to our Reviews Team at email@example.com.
Ratings listed in this article are accurate as of October 2022.
AM Best Disclaimer