Many Birmingham families are concerned about finding affordable homeowners insurance. Alabama currently has two active disaster declarations by FEMA. It is essential to have adequate coverage to protect your assets from financial turmoil due to the many severe storms, hurricanes and tornadoes that frequently occur in the state .
According to Bankrate’s 2021 annual premiums, the average cost for homeowners’ insurance is $1,312 per year. For a $250,000 home, the average insurance premium in Birmingham, Alabama is $1,495 per year. Prospective policyholders should carefully investigate each provider’s affordability, discounts available, coverage options, and satisfaction ratings. Bankrate identified the five top Birmingham homeowners insurance companies based on these criteria. This will help you in your search to find the best homeowners insurance company for your needs.
Birmingham’s best home insurance company
When deciding which Birmingham homeowners’ insurance company is right for you, affordability and customer satisfaction are two of the most important considerations. Below is a table that highlights the five most affordable providers in the area, along with their average customer satisfaction index rating as calculated by the 2020 J.D. Power Home Insurance Study
USAA
USAA is a specialist in providing coverage for Birmingham’s active military personnel, veterans and their immediate families. USAA offers many coverage options including dwelling coverage, loss-of-use coverage, personal property, personal liability, homesharing coverage, other structures, and earthquake coverage. Based on the quoted premiums, this provider is Birmingham’s most affordable homeowners’ insurance carrier. The company offers other ways to save, including discounts for being claim-free, bundling your auto insurance, and installing protective devices in your home.
The company is technically not eligible for a J.D. ranking due to its status as an exclusive military-only insurance provider. Power Power. Power’s numerous industry surveys.
State Farm
State Farm, which is the most affordable of all providers Bankrate reviewed for homeowners’ insurance, is another great option for Birmingham families. Customers can choose to add additional liability policies or get basic coverage for their home. A highly-reviewed mobile app makes it easier to manage your policy from your smartphone.
State Farm scores 829 out 1000 in customer satisfaction. State Farm’s performance here is better than the industry average of 823.
All over the country
Nationwide offers the most comprehensive coverage. Nationwide policies may provide coverage for personal liability, medical payments, dwelling, ordinance, or law insurance, and contents. You can add optional coverages to your policy, including water backup, identity theft and valuables plus, earthquake or flood insurance.
Nationwide’s customer satisfaction scores are not as high as those of other companies listed on this list, despite having a wide range of coverage options. Nationwide’s customer satisfaction index score is just 808/1,000 which falls short of the industry average.
Allstate
Although Allstate is not as affordable as other providers, potential policyholders can access a wide range of coverages. This provider offers standard homeowners’ insurance policies that include coverage for dwelling, personal property and liability protection. For additional financial protection, policyholders can choose to have a personal umbrella policy or flood insurance.
Allstate offers many discounts that can be used to lower your premium, in addition to the special coverages. Multi-policy discounts, responsible payments and claims-free are all available. Allstate has a customer satisfaction rating that is identical to State Farm’s. This reflects positively on the policyholder experience.
Auto-Owners insurance
Auto-Owners Insurance is the most expensive provider, but it offers a wide range of coverages. Additional to standard property and casualty coverages for injuries or damages, Auto-Owners Insurance also offers optional coverages such as water backup, guaranteed home replacement cost, and coverage for special personal property, ordinances or laws, equipment breakdown, homeowners, and identity theft expense coverage.
Auto-Owners policyholders might find more savings by purchasing multiple policies. With 843 customer satisfaction ratings out of 1,000, the company has the second highest rating.
Birmingham Home Insurance Options
It is important that you consider how your environment may affect your decision to add optional extras to your coverage. Your location may make it difficult to get standard homeowners insurance coverage. This could lead to you not being covered for things like water backup or identity theft. These are some of the top add-ons Birmingham residents might want to look into when searching for homeowners insurance.
- Water backup coverage: Alabama receives more than 55 in. of rain every year. Heavy rainfall can lead to water logging in your home’s plumbing system. You could end up paying for the water damage to your home and any plumbing repairs if you don’t have water backup coverage.
- Replacement cost coverage: Although there has been a slight drop in property crimes in Birmingham the property crime rate in the city is still 315 percent higher than the national average. Birmingham homeowners may find it beneficial to have replacement cost coverage in order to cover the costs of replacing their property that has been stolen or damaged.
- Flood coverage: Most homeowners insurance policies do not cover flooding damage. Birmingham homeowners might need flood insurance, especially if they live in an area with high risk.
Birmingham Home Insurance Discounts
The many discounts offered by regional carriers make it easier to afford homeowners insurance in Birmingham. You may be eligible to receive significant savings depending on your individual situation. These are the top discounts homeowners can get when they’re looking for affordable homeowners insurance.
- Multi-policy discount: Many insurance companies offer multi-policy discounts to reward policyholders who are committed. The exact savings amount will vary depending on which cheap homeowners’ insurance company you choose from our selection.
- Discounts that are not subject to claims: In most cases, the lower your risk, the greater your reward. You may be able to save up to 20% on certain providers if you are switching providers with a claim-free past.
- Discount for homeowners who have smoke detectors or deadbolt locks, fire extinguishers, or other home protection devices, are often eligible for a discount. You may be eligible for a credit, similar to the USAA, to help you install these systems in your house.
These are the best discounts Birmingham homeowners can get, but there are other options that could reduce the cost of your coverage. To determine your eligibility, be sure to discuss the available discounts with your home insurance company (or prospective one). To lower your premium, you might also be eligible for discounts. Your premium will be lower if you take on more property damage risk.
Questions frequently asked
Which is the best company for home insurance?
It takes a lot of research to find the best home insurance company that meets your needs. To determine which provider is right for you, review the average cost of coverage, customer satisfaction, discounts available, and coverage coverage.
What is the cost of home insurance in Birmingham?
Birmingham’s average home insurance cost is $1,495 per year for a 250,000-square foot dwelling. This price can vary depending on many factors, such as your location, home value and claims history, and the level of coverage you have.
What amount of home insurance do you need in Birmingham?
Your personal information and risk assessment will determine how much home insurance you need. You may want to add flood insurance or water backup coverage if you live in an area where it is more likely to rain. Most insurance agents will recommend that you have enough homeowners insurance to cover the entire cost of replacing your home or personal property in case of total loss.
