Owning a home can be a rewarding experience, but it comes with a number of responsibilities, like purchasing homeowners insurance. Alabama homeowners pay an average $1,624 annually for $250k worth of dwelling coverage. Although the state’s median property value is just $147,900–significantly lower than the national average value of $229,700–having homeowners insurance is still important for Alabama residents.
Many homeowners insurance policies cover your home against certain perils or qualifying events that could cause damage to your home. Alabama is in an area that is susceptible to hurricanes so purchasing homeowners insurance can be expensive. You can get the coverage that you need by choosing wisely from a home insurance provider.
Alabama’s best home insurance companies
If you aren’t sure where to begin, finding the best Alabama homeowners insurance can prove difficult. We have compiled a list of top Alabama homeowners insurance companies based on J.D. Power’s 2020 U.S. Home Insurance Study. We focused on ratings for overall satisfaction and coverage options as well as price and customer service. These are the companies that made it onto our list
Centauri
Centauri could be an excellent choice for Alabama homeowners who are looking for a more centralized home insurance company. Although the company is limited to nine states, mainly in the Southeast region, its agents have extensive experience dealing with storm-related situations. It offers coverages that include additional living expenses, equipment breakdown insurance, and protection for your garage or shed.
State Farm
State Farm is well-known for its wide selection of coverage options, affordable premiums, and discounts that help customers in Alabama save money. The policies cover damage due to weather, vandalism, theft, and accidental water leakages.
Auto-Owners
J.D. ranked Auto-Owners highly. Power’s study praised Auto-Owners for its smooth claims handling and excellent customer service. While it has standard home insurance coverage options, Auto-Owners also offers some special coverages such as for high value homes. Auto-Owners also offers an enhanced cost endorsement that covers up to 25% of the amount of your coverage if your policy doesn’t cover the costs of replacing or repairing your home.
Allstate
Allstate Insurance is a well-respected company. They offer a range of policies that will help you save money, such as accident forgiveness. The 2020 J.D. Index ranks Allstate higher than average. The Power customer satisfaction survey shows that the company ranks above average on 2020 J.D.
Alabama Farmers Federations (ALFA).
Although not ranked by J.D. ALFA Insurance, though not ranked by J.D. Power, is an excellent insurance option for Alabama homeowners who are interested in supporting their local agriculture community. The company offers both HO-3 and 5 policies. Alabama customers who bundle their auto and home insurance may also be eligible for a discount.
What is the cost of homeowners insurance in Alabama
Homeowners in Alabama pay an average of $1,624 for $250,000 in dwelling coverage per year for a standard insurance policy, which is higher than the national average of $1,312 per year. Alabama residents will pay higher insurance premiums that the national average due to the possibility of flooding, hurricane winds and rain.
Rates will vary depending on your personal information, such as credit scores and whereabouts. Compare Alabama’s homeowners insurance rates with other states in the same area.
Alabama home insurance
Alabama residents are well aware that storms and tornadoes can impact their homes at any time. Flood insurance is generally recommended for Alabama policyholders, and is not standard on most homeowners insurance policies. Flood insurance may be required if your home is located in an area at high risk of flooding. This is especially true if you have federally-backed loans. To ensure the best coverage, you should also consider other possible loss causes in the state.
Alabama’s most common causes of loss
According to data from the Insurance Information Institute (III), there are well over 51,000 single-family homes in Alabama that are at risk of being damaged or destroyed by a category five hurricane. This means that while a hurricane can damage or destroy large numbers of single-family homes in Alabama, there are other common causes of loss.
- Tornadoes: Tornadoes have the ability to rip up housing structures. Alabama was struck by 73 tornadoes in 2020.
- Storms: Hurricanes and other storms are more likely to occur in Alabama due to its location along the Gulf coast.
- Floods: As a Gulf coast state, Alabama’s frequent storms often lead to flooding, which can cause damage to your basement or other property.
Alabama offers a variety of home insurance options
It is important to know the types of coverage that are available in Alabama and what they provide protection for when you’re looking for homeowners insurance. To ensure that you are properly covered, homeowners may consider flood insurance add-ons. These are the types of coverage you should be looking for:
- Dwelling coverage: This type of insurance pays for repairs to your home and attached structures on your property if they get damaged in a covered peril.
- Service line coverage: Damage to service lines, like water pipes and cable lines, extending into your home are generally not covered in basic homeowners insurance policies. This coverage can be added to your policy to cover damage caused by an exclusion.
- Flood insurance: This covers any flood damage to property stemming directly from a severe storm, flash flood or other flood-resulting occurrence.
Questions frequently asked
Alabama homeowners insurance is required
In no state is homeowner’s insurance required. Most mortgage lenders require homeowners who have a loan to buy insurance to cover their property against damage.
What is the best homeowners insurance in Alabama?
The cheapest homeowners insurance depends on a variety of factors. Your home’s location, size, build materials, safety features, and any add-ons like a pool are all factors that insurance companies use to estimate your premium. Rates will also be affected by factors such as credit score, gender, and age.
How can I get Alabama homeowners insurance?
It is easy to get homeowners insurance. You will need to give information, whether you are getting a quote online or talking to an agent. You will need to provide information such as the year of your home’s construction, whether you have filed any claims in the past, the design of the interior, and any safety features. You will also need to provide your social security number, income, age, gender, and marital status as a homeowner.
How can I save money when buying homeowners insurance?
You can save money on homeowners insurance premiums by shopping around. Insurance companies often offer discounts to customers who have good credit scores, bundle policies with them, choose a higher-deductible policy, or install a security system.
