Average Costs and Cheapest Homeowners Insurance Companies in Alabama

While Farmers is overall the most affordable provider in Alabama, Country Financial offers the cheapest policies for individuals with bad credit. To provide you with low cost homeowners insurance options in Alabama, MoneyGeek analyzed thousands of quotes from different companies to help you find the company that best fits your needs.

If you’re looking to balance affordability with a strong service experience, MoneyGeek also scored the best home insurance companies in Alabama.

MoneyGeek researched thousands of insurance quotes in Alabama to find the company that offers the cheapest coverage in the state. Our research shows that Farmers offers the most affordable homeowners insurance in the state for a baseline dwelling coverage of $100,000. MoneyGeek found that Farmers is also the cheapest option for a policy with dwelling coverage limits of $250,000 and $500,000.

You can toggle the table below to understand the costs of dwelling coverage. The cost of replacing your home will determine how much dwelling coverage you need.

The cost of homeowner insurance can change depending on how much dwelling coverage you add to your policy. On average, it costs $1,436 per year for a policy with a baseline dwelling coverage limit of $100,000.

How much dwelling coverage you buy significantly affects your home insurance rates. At a higher premium, a policy with a high dwelling coverage limit covers more damage. For instance, a policy with a dwelling coverage limit of $100,000 costs $1,436 annually. Comparatively, there is an increase of $35,657 per year for a dwelling coverage of $3 million.

The cost of your home insurance policy will depend on your individual circumstances. Insurance providers consider the location of your property, its distance to a fire department, roof quality, elected deductible, credit score, frequency of claims and other factors, including the amount of personal property covered under your policy.

You can adjust your dwelling coverage limits, deductible and other limits to see how the average cost of homeowners insurance in Alabama will change depending on your needs.

MoneyGeek analyzed thousands of quotes from different companies. For homeowners that need $2 million in dwelling coverage, the most affordable providers in Alabama are:

• Farmers: $3,071 per year
• Allstate: $8,563 per year

USAA is another affordable option, with an average cost of $7,405 per year. However, its policies are exclusive to military families.

Owning an expensive home can impact insurance rates. That’s why it’s best to shop around and compare quotes to find the best deal.

For homeowners with new homes that require $250,000 in dwelling coverage, MoneyGeek researched thousands of quotes from different companies in Alabama and ranked the companies that offer the cheapest policies. The following rankings are based on a sample home built in 2015:

• Farmers: $330 per year
• Allstate: $839 per year

We found that if your home was built in 2015, your insurance costs can be as much as $396 less compared to a home built in 2000.

The numbers for homes built in 2000 differ from the first section due to a different ZIP code collection process.

Insurance for newly constructed homes is less costly. On average, newer homes cost $1,089 to insure annually, while those built in 2000 cost $1,485 per year. Older houses were built with expensive materials and require more expertise to repair. Due to the risk, providers consider the age of your home when calculating premiums.

MoneyGeek researched the following cheapest homeowner insurance companies in Alabama for homeowners with a pool:

• Farmers: $425 per year
• Allstate: $1,082 per year

Having a pool increases the value of your home. According to insurance companies, it also increase the chances of pool-related accidents on your property, such as drowning. Insurers consider it a liability risk and require that more liability coverage be added to your policy.

Keep in mind that not all insurers cover your pool in your typical dwelling coverage limit and some may consider it a different structure that requires additional coverage.

The cost of your homeowners insurance may fluctuate depending on whether you have a pool on your property. The average homeowners insurance cost in Alabama for homes with a swimming pool is $1,485 per year.

In Alabama, if you have poor credit and you are looking for a policy with $100,000 in dwelling coverage, consider the following companies for cheap homeowner insurance in the state:

• Country Financial: $1,139 per year
• Farmers: $1,695 per year

While USAA offers one of the cheapest homeowner policies for individuals with bad credit, its policies are limited to military families.

Since individuals with bad credit are considered more likely to file a claim and fall behind on payments, the insurance companies charge higher premiums.

Credit score can influence homeowners insurance costs in Alabama. For example, MoneyGeek’s research shows that if you have bad credit, you could pay as much as $1,430 more on average compared to someone with good credit.

MoneyGeek found that the cost of a homeowner policy can significantly change depending on where you live in the state. Our research shows that Farmers offers the cheapest policy in Birmingham with $100,000 in dwelling coverage at an average cost of $357 per year, which is $1,079 less than the city average.

Finding the best homeowners insurance in Alabama requires that you provide insurers with basic information about yourself, such as your name, address and Social Security number. You also have to prepare information that will help insurance carriers calculate your annual premium. For instance, you will have to find out the current value of your home, including your personal belongings. You also need to inform providers about the age of your home, the type of home you own, the materials it is made of, its condition and the estimated cost in case it needs rebuilding. This information is required to get a binding home insurance quote estimate from an insurance company. Having a security system or solar energy panels may impact your annual premium as well. Discussing your options with your prospective provider will help you find the right coverage for you.

It’s also possible to get an anonymous home insurance estimate using MoneyGeek’s home insurance calculator.

MoneyGeek analyzed homeowners insurance premiums from nine of the top insurance companies in Alabama that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Alabama. Quotes were gathered with an average home profile of 2,500 square feet, built in 2000, with an average dwelling coverage value of $100,000, liability coverage of $100,000 and personal property coverage of $100,000.