If you have a home in the lovely state of Alabama, clearly you want to make sure you’re doing everything in your power to keep it safe and make sure a disaster can’t wipe out your equity. And while storms, fires, and other disasters cannot be entirely prevented, you can make sure you have a safety net in the form of homeowners insurance. We understand that it’s more expensive in the state, but that only shows the need for it. And it doesn’t need to be as expensive as you think, as we found the cheapest policy options for you.
Here are the five cheapest homeowners insurance providers operating in Alabama:
The Five Cheapest Quotes:
Every home and family are different, and as a result, you can expect your results to be different from exactly what you read below. What you can rely on is the accuracy of the trends and the fact that these five will generally be the cheapest options.
The number listed next to each provider is the average annual rate for a standard policy.
1) Progressive: $1,634
The cheapest option in the state by quite a margin, Progressive is a provider that offers plenty of options to its customers and is transparent about the other opportunities available to you, but you should know that they generally don’t underwrite the policies themselves, instead using a partner (often Homesite) to do so.
The negatives mostly revolve around their partners or the fact that it’s hard to determine what you’ll be getting in terms of service with them. You’ll need to do more research to be sure about Progressive, if they interest you. Additionally, you don’t get too many additional discounts.
You can expect the following working with Progressive:
- Plenty of helpful tools and apps available to customers and potential customers.
- Usually, there is a good number of optional coverages available.
- There will often be several tiers of coverage available.
2) Farmers: $1,988
Great for new homeowners and those looking for excellent customer service, Farmers is a well-known name in the home insurance industry. We find them to be a great choice to those looking for a specialized or customized policy for their home, given the options available to the customer. Additionally, they reward people well should they not make any claims over time.
Farmers isn’t always well-regarded, however, and they get average ratings when it comes to customer satisfaction, often due to rate spikes after signup. They also aren’t the financially strongest company out there, but this shouldn’t be a major concern for most people.
You can expect the following working with Farmers:
- An excellent loss of use policy should something happen to your home.
- Many discounts for things such as being a new homeowner, recently making a qualifying renovation, using strong roofing materials, and more.
- Options specifically for condos, townhomes, and other homes that don’t meet the standard definition.
3) Nationwide: $1,988
Equal in price on average to Farmers, Nationwide might be expensive to some people, but it remains a relatively affordable option, especially if you take their discount options into account. And when it comes to options, Nationwide has you covered, as they offer one of the most flexible plans in the business. Combine this with a strong array of online tools, and Nationwide might be the best option for the customer who knows exactly what they want.
However, prices can be much higher in certain areas and some optional coverages can be much higher than the average as well. Additionally, their service is good, but not perfect, and you can run into a bit of a wait for certain things.
You can expect the following working with Nationwide:
- Replacement coverage that is difficult to beat.
- A free and optional annual review that will help make sure you are always getting the best possible plan.
- Policy add-on options such as flood, earthquake, water backup, and identity theft coverages. There are also some enhanced home replacement and valuables coverages available.
4) State Farm: $2,565
Known for providing affordable insurance of all types across the country, State Farm is one of the most popular providers in Alabama and they will be able to provide you with a standard insurance package you can rely on, albeit not at the cheapest price in this state. Customer satisfaction is high and the coverage is strong.
The main problem is that there isn’t too much extra to choose from or work with when it comes to customization options, which is concerning when Farmers and Nationwide are cheaper on average. You also won’t find too many discount options with State Farm, so the quote you get will be the quote you get.
You can expect the following working with State Farm:
- One of the best online quoting tools in the industry.
- Agents and infrastructure located throughout the state.
- An extreme level of stability and reliability should you need to make a claim.
5) Liberty Mutual: $3,916
Based on the price, there are few homeowners we would recommend Liberty Mutual to, but that doesn’t mean they aren’t worth a look if you think they could be a good fit and are willing to pay an exorbitant amount on average for homeowners insurance. They can offer things such as an inflation endorsement protection, optional coverages for valuables and water damage, and plenty of customer support channels.
Yet outside of the price, you should also know that Liberty Mutual isn’t the most financially stable company when compared to other providers (although this isn’t something that should necessarily scare you away from them. Other people have reported issues making legitimate claims, which should concern you.
You can expect the following working with Liberty Mutual:
- The ability to get emergency repairs made easily via Liberty Mutual’s partners.
- Plenty of discount options available, to help lower the rate at least a bit.
- A helpful online library of information to guide you regarding your policy.
If you have a nice home in Alabama, you need a great homeowners insurance policy to match unless you can afford to pay for extensive repairs or even the cost of replacing your home. If you’re new to the market, we hope that you can find a good starter policy that will be nice for your new home. If you’re looking for a replacement, we similarly hope that you are able to find a cheaper (or better) fit for your property. It can be a tough search and choice, but we know that with a bit of time you’ll get exactly what you need.