2022 Best Cheap Homeowners Insurance in Alabama

2022 Best Cheap Homeowners Insurance in Alabama

Alabama homeowners insurance overview

Here are a few things that homeowners should be aware of when shopping for Alabama home insurance.

Alabama homeowners pay more for insurance

The average cost of homeowners insurance in the state is $2,364 per year, 27% higher than the national average. Still, it’s worth noting the cost of housing in Alabama is the second lowest in the US Depending on income, Alabamans may still be money ahead after paying a bit more for insurance.

Three easy ways to reduce costs

Shop insurers: There are six types of policies specifically designed for non-mobile homes. They range from basic to wide-ranging coverage, and the best homeowners insurance companies offer them all. The trick is to buy the most comprehensive coverage offered at the lowest premium. It may take some shopping around to accomplish, but it can be done.

Seek discounts: Another important money-saving tactic is to take advantage of all possible home insurance discounts. Discounts cover just about everything, from bundling policies to installing an alarm system.

Deductible raise: Finally, if annual premiums put a strain on the budget, raising the policy deductible will lower the premium price.

What are the most common homeowners insurance claims in Alabama?

According to FEMA, the state of Alabama declared 87 major disasters between 1953 and 2019, most of which involved severe storms and hurricanes. To ensure proper coverage, it may help to know the most common Alabama home insurance claims. Here’s what they are:

Water damage

Alabama has plenty of sunshine and a fair amount of rain, which helps explain water-related claims, including leaky bases and wood rot. There are also everyday issues, like water damage caused by broken appliances and plumbing issues.

fire and lightning

In 2019, 25% of all homeowners insurance claims were a result of fire and lightning damage, according to the Insurance Information Institute. Fire does not top the list of homeowners insurance claims, but it is the most expensive issue insurance companies deal with.

wind damage

Wind damage is another common Alabama claim. Whether it’s caused by a hurricane, tornado, or thunderstorm, roofs and other exterior features of a home can take a beating due to wind damage.

Homeowners insurance coverage options and discounts

Discounts like bundling, safe driver, and paying the annual premium upfront are all great, easy ways to save money. However, when it comes time to purchase homeowners insurance, it makes sense to make the most of all potential savings. For example:

An alarm system saves money in more than one way

The best homeowners insurance in Alabama rewards homeowners for installing a security system by offering a premium discount of 15% to 20%. Let’s say the annual premium is $1,000. An alarm system can cut that amount by $150 to $200. In addition, an alarm system could lower the risk of a break-in, which in turn, would lower the number of claims.

Roof upgrades dramatically decrease premiums

Roof replacements are one of the most common claims insurers deal with. But upgrading a roof can provide an Alabama homeowner with one of their steepest home insurance discounts. The average discount in the state for homeowners with an upgraded roof is nearly $400, primarily because there is less risk it’s going to need to be replaced anytime soon.

Electrical upgrades lead to discounted premiums

Not only can an electrical upgrade help protect a home from fire, but it will also knock an average of $250 off an Alabama homeowner’s premiums each year.

5 cheapest cities in Alabama for homeowners insurance

Insurance companies take many factors into account as they determine premiums. They include things like the area crime rate and proximity to a fire station.

Here are the five cheapest cities in Alabama for homeowners insurance:


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