Best Cheap Homeowners Insurance in Huntsville | Bankrate (2024)

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Updated Apr 29, 2024

The best home insurance companies in Huntsville

To find the best home insurance, Huntsville homeowners may need to conduct some research — or let Bankrate do it for you. Our insurance editorial team looked at average rate data from Quadrant Information Services, customer service ratings from J.D. Power, third-party financial strength ratings, discount availability, policy options and more for some of the largest Alabama home insurance companies. Based on our findings, USAA, Auto-Owners, State Farm, Travelers and Encompass are the five best home insurance companies in Huntsville.

The cheapest home insurance companies in Huntsville

Home insurance in Huntsville costs $2,400 per year for a policy with a $300,000 dwelling coverage limit. Depending on your finances, the cost of home insurance could break your budget. Bankrate's insurance editorial team identified some cheap home insurance companies for a variety of dwelling coverage limits. Our research indicates that Cincinnati, Allstate and USAA offer the cheapest home insurance in Huntsville for $300,000 in dwelling coverage.

How much is home insurance in Huntsville, Alabama?

The cost of home insurance in Huntsville is 13 percent less than the cost of home insurance in Alabama. For comparison, home insurance in Alabama is 21 percent more than the national average cost of home insurance of $2,270. Alabama’s higher home insurance rates are partially due to the state’s risk of natural disasters. Alabama is prone to hurricanes (especially along the shores of the Gulf of Mexico) and tornadoes. Huntsville’s more northern position may help shield it from the worst of the hurricane damage, but puts it closer to the Dixie Alley tornado path. This added risk could make affordable home insurance in Huntsville a little harder to find.

Huntsville rates by credit tier

Homeowners with excellent credit tend to receive the cheapest rates. Homeowners with bad credit are generally seen as more likely to file home insurance claims, so insurance companies usually charge them higher rates to account for it. Building credit can take time, but if you’re struggling to curb high home insurance costs, taking the steps to do it may result in some serious savings. Our research shows that homeowners with excellent credit pay 55 percent less on average compared to homeowners in Huntsville with poor credit.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Huntsville rates by home age

How old your home is can also affect how affordable your home insurance rates are. Broadly speaking, older homes are usually more expensive to insure than new builds. Older homes, particularly ones that are built with materials that are more expensive now than they were 30 or 40 years ago, could make a rebuild after a total loss cost more for the insurer.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Huntsville rates by deductible

If you’re really stumped on lowering your home insurance costs, don’t neglect your insurance deductible. A higher deductible home insurance policy could result in a lower premium, as you are transferring more of the financial risk away from the insurance company and onto you. However, be sure that your deductible always remains an amount you can reasonably afford to pay out on a moment’s notice.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Methodology

Home insurance rates

Bankrate utilizes Quadrant Information Services to analyze August 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.

Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: “1959, 1982, 1992, 2010, 2016 (base) and 2020.”

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Cost & ratings50%

• Coverage & savings30%

• Support20%

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from and Moody’s and factored a company’s corporate sustainability efforts.