The Best and Cheapest Homeowners Insurance Companies in Alabama

We obtained thousands of quotes from across Alabama to find the best homeowners insurance company for most people. While many people primarily consider price when shopping for coverage, it's best to judge a company on its policy features, reputation for customer service and online experience rather than by its rates alone.

Compare Home Insurance Quotes from Providers in Alabama

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The best price we found for typical home insurance coverage was $821 per year. However, we accounted for more than price when making our recommendations for best homeowners insurance in Alabama, which are outlined below.

Best homeowners insurance for most people: MetLife

MetLife's multiple levels of protection can suit homeowners with different amounts of property.
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The best homeowners insurance for most people in Alabama is MetLife. A standard homeowners policy from MetLife remains affordable while covering a range of industry-standard perils that could affect typical homeowners, such as fire, wind and theft.

In addition to MetLife's basic offerings, you could also add features like water backup protection and comprehensive perils protection to your coverage by upgrading to MetLife's Platinum homeowners insurance. We believe that MetLife's best endorsements for many Alabamians are its replacement cost upgrades.

MetLife's average cost of homeowners insurance is about $1,154 per year—nearly 40% cheaper than Alabama's statewide mean.

MetLife's online experience is less optimized than many of its competitors. Despite its sparse online interface, MetLife still boasts high customer satisfaction scores based on data reported by the National Association of Insurance Commissioners (NAIC). The NAIC's analysis of the amount of complaints the insurer is responsible for shows that MetLife receives far fewer complaints than its size suggests.

Most affordable homeowners insurance: Cincinnati Insurance Co.

Cincinnati Insurance sells the cheapest insurance in Alabama and has many ways to save.
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Read the full review

The most affordable homeowners insurance in Alabama is Cincinnati Insurance, which sells policies for an average price of about $821 per year. This is 56% cheaper than the average cost of homeowners insurance in Alabama.

You may be able to lower the price of your homeowners insurance with Cincinnati Insurance by qualifying for any of the company's discount opportunities, including:

  • Bundling coverage with another policy
  • Owning a home that's a decade old or younger
  • Installing an alarm system that's monitored by a central station
  • Having a clean insurance history

While regular homeowners insurance from Cincinnati Insurance should be a fit for most property owners, there are a few endorsements that you can add to your policy for more coverage. Besides protections against water backups and electronic equipment breakdown, you can purchase private flood insurance through Cincinnati Insurance.

One downside of Cincinnati Insurance could be its availability. Based on filings sent to Alabama's Department of Insurance, Cincinnati doesn't offer coverage below Interstate 10 in Baldwin County—the largest of the state's counties.

Best for complete coverage: COUNTRY Financial

COUNTRY's number of extra features make it the best way to maximize your coverage.
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If you want to get the most protection out of your homeowners insurance, consider COUNTRY Financial's coverage—especially if you're searching for manufactured home insurance. COUNTRY has a wide selection of features that you can add onto your regular policy, including $25,000 of identity theft coverage and restitution services, and water backup protection.

COUNTRY also offers replacement cost coverage for your home and property for little as 12% of your premium. Additionally, you can purchase an extended form of replacement cost coverage that reimburses a loss even if it exceeds your policy's limit by up to 25%.

The average cost of a standard homeowners insurance from COUNTRY is $940 per year, or about half of Alabama's typical price. If you want to save money on your annual premium, there's a range of discounts that COUNTRY offers to lower costs. You could save money by:

  • Bundling your homeowners insurance with another type of policy
  • Having a roof that's been replaced in the last 10 years
  • Installing a roof made of hail-resistant material
  • Earning a wind mitigation certification on your home's structure

Notably, COUNTRY has the highest-rated customer service of any of the companies in our study. It receives only a fraction of the expected number of complaints its size suggests.

Best for online shopping: Nationwide

For shoppers who want a quick shopping experience and affordable coverage.
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Nationwide's online experience is the best of the homeowners insurance companies in Alabama that we surveyed. If you're looking to quickly purchase coverage without speaking to an agent or traveling to a local office, you can request a quote from Nationwide and personalize each part of your coverage in under 10 minutes.

Homeowners insurance from Nationwide is some of the cheapest coverage available in Alabama. The average cost of homeowners insurance from Nationwide is about $1,409, about 25% cheaper than the statewide mean. Additionally, there are a lot of ways to earn discounts, including by:

  • Bundling coverage with another policy
  • Installing smoke detectors in your home
  • Remaining claims-free
  • Renovating your home's interior systems
  • Improving your roof
  • Owning home you purchased in the last year

You can get replacement cost coverage from Nationwide if you're concerned about the effects of severe weather or other potentially devastating perils. Nationwide also offers an extended replacement cost option that may cover up to 20% in excess of your limits after a loss.

Homeowners insurance companies with the best customer service

To compare the customer service of Alabama's homeowners insurance companies, we used complaint data reported by the NAIC and J.D. Power's customer satisfaction survey, which scores companies on a five-point scale.

The NAIC's complaint index is calculated by dividing a company's complaints by its market share. A score of less than 1.0 indicates a company gets fewer complaints than the impression its size gives. A company with a complaint index of 1.25, for example, receives about a quarter more complaints than expected.

We found that the companies with the best customer service were COUNTRY Financial, USAA and Cincinnati Insurance. The companies Alfa and Centauri both have a complaint index of 0.00, but they have market shares that are too small to allow for comparison with large national insurers.

CompanyNAIC ValueJ.D. PowerAM Best
State Farm0.204/5A++
Alfa0.00Not ratedA
Allstate0.313/5A+
USAA0.155/5A++
Farmers0.393/5A
Travelers0.302/5A++
Liberty Mutual0.532/5A
Nationwide0.312/5A+
Auto-Owners Insurance Co.0.214/5A++
COUNTRY0.133/5A+
Cincinnati Insurance0.18Not ratedA+
MetLifeC0.193/5A
Centauri Insurance0.00Not ratedNot rated

Cheapest options for homeowners insurance in Alabama

On average, the price of homeowners insurance in Alabama is about $1,850 per year. This is more expensive than the United States' average cost of coverage, which we found to be $1,083 annually. Additionally, there were no ZIP codes that we found whose average cost was cheaper than the national average price of homeowners insurance.

The cheapest homeowners insurance for most people in Alabama is Cincinnati Insurance, which has coverage options for about $820 per year. Conversely, the most expensive homeowners insurance company is Auto-Owners Insurance, where coverage can cost more than $5,000.

A bar graph showing the average costs of motorcycle insurance in Alabama
A bar graph showing the average costs of motorcycle insurance in Alabama

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Most common homeowners insurance perils in Alabama: Tornadoes, hurricanes, lightning

Alabama's location along the Gulf of Mexico and in the Dixie Alley, a circuit of states that has storm activity comparable to the well-known Tornado Alley's, means that its homeowners can experience frequent, devastating severe weather.

While most homeowners insurance policies offer protection against wind damage and lightning strikes, there may be provisions in your policy that limit your coverage. To be sure your home would be protected if you experienced a property loss, it's good to understand how your homeowners insurance treats those perils you're most exposed to.

Is wind damage covered by homeowners insurance?

Wind damage is usually included as an insured peril in your homeowners insurance. This coverage applies to gusts, as well as wind from tornadoes and hurricanes. Alabama experienced at least 65 tornadoes in 2019, according to the National Weather Service, so it's a good idea to make sure your coverage is up-to-date.

You should consider purchasing replacement cost coverage if it's available in your area. Remember, most homeowners insurance policies come with actual cash value protection that accounts for your property's monetary depreciation before paying out compensation.

If you're in a coastal part of the state that's susceptible to hurricanes, you may have to consider flood protection, too. Although policies cover a hurricane's wind damage, flood damage is almost never covered by typical homeowners insurance policies. The National Flood Insurance Program sells policies, as do some private insurers.

Does homeowners insurance cover lightning?

Lightning strikes are prevalent in Alabama according to reports by NOAA. Most homeowners insurance policies list lightning strikes as covered perils. In fact, your policy may provide protection from:

  • Direct strikes
  • Near misses that still damage property
  • Falling trees damaged by lightning
  • Fires set by lightning
  • Power failures caused by strikes to the ground

As with other perils, the coverage you receive will depend on the limits of your policy.

Alabama insurance rates: city-by-city breakdown

Our analysis of the best homeowners insurance in Alabama enabled us to find the average cost of coverage in the state's 50 most-populated cities. In the following table, we've displayed each city's rates along with their difference from the statewide average.

The most expensive city in Alabama for homeowners insurance is Foley, where coverage costs an average of over $2,700 per year. On the other hand, the cheapest city for homeowners insurance in the state is Pelham. Here, coverage costs just under $1,300 per year.

CityAverage cost% from AL average
Birmingham$1,604-13%
Montgomery$1,497-19%
Huntsville$1,583-14%
Mobile$2,40730%
Tuscaloosa$1,592-14%
Hoover$1,352-27%
Dothan$1,666-10%
Auburn$1,503-19%
Decatur$1,653-11%
Madison$1,557-16%
Florence$1,734-6%
Phenix City$1,584-14%
Prattville$1,504-19%
Gadsden$1,797-3%
Vestavia Hills$1,388-25%
Alabaster$1,398-24%
Opelika$1,543-17%
Enterprise$1,667-10%
Bessemer$1,710-8%
Daphne$2,64843%
Athens$1,662-10%
Northport$1,582-14%
Homewood$1,646-11%
Pelham$1,289-30%
Trussville$1,479-20%
Fairhope$2,71847%
Anniston$1,747-6%
Albertville$1,9184%
Prichard$2,40930%
Oxford$1,728-7%
Mountain Brook$1,383-25%
Helena$1,330-28%
Troy$1,607-13%
Foley$2,72847%
Tillmans Corner$2,66344%
Selma$1,815-2%
Center Point$1,749-5%
Cullman$1,797-3%
Millbrook$1,534-17%
Hueytown$1,735-6%
Talladega$1,778-4%
Saraland$2,51636%
Alexander City$1,594-14%
Hartselle$1,689-9%
Scottsboro$1,9013%
Calera$1,400-24%
Ozark$1,668-10%
Muscle Shoals$1,747-6%
Gardendale$1,494-19%
Fort Payne$1,8942%

Methodology

For this survey, we gathered quotes from 13 of Alabama's largest homeowners insurance providers. We sourced our quotes from every one of the state's ZIP codes using a sample profile purchasing coverage for a $141,300 property built in 1981. These numbers correspond to the median worth of homes in Alabama and the median year in which owner-occupied houses were built in the state.

We requested quotes from the following companies:

  • State Farm
  • Alfa
  • Allstate
  • USAA
  • Farmers
  • Travelers
  • Liberty Mutual
  • Nationwide
  • Auto-Owners Insurance Co.
  • COUNTRY Financial
  • Cincinnati Insurance Co.
  • MetLife
  • Centauri Specialty Insurance Co.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only—your own quotes may be different.

Chris Moon

Chris is a Product Manager for ValuePenguin with years of experience in addressing critical questions about mortgages and homeowners insurance. He spends his time evaluating insurance providers and policy features to understand where consumers might find the most cost-effective coverage. Chris has contributed insights to the New York Times and many other publications.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.