Best Birmingham Homeowners Insurance Quotes (2025)

Allstate, Travelers, and Foremost offer the best homeowners insurance policies in Birmingham, Alabama.

Melanie Lockert
Written byMelanie Lockert
Melanie Lockert
Melanie Lockert
  • 10+ years writing on personal finance topics

  • Host of the Mental Health and Wealth podcast

Melanie is a blogger, author, and speaker specializing in personal finance and debt management. She’s also the author of the blog and book “Dear Debt.”

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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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The average cost of homeowners insurance in Birmingham, Alabama, is $2,601 per year, according to Insurify data. The average assumes a $300,000 policy and a $1,000 deductible. Your home insurance premium may be higher or lower, as it’ll vary based on your location, the age of your home, unique risk factors, and more.

Birmingham homes face risk from fire, wind, and flooding, and you may need additional coverage to help protect your home.[1]

Quick Facts
  • Allstate has the most affordable home insurance in Birmingham.

  • Birmingham has lower home insurance rates than many other cities in Alabama, according to Insurify data.

  • Some parts of Birmingham are at higher risk of floods than others. You can review an area flood map to understand your risk.

Best home insurance companies in Birmingham

Birmingham residents have many different home insurance companies to choose from. The best home insurance company for you depends on your needs and budget.

Here, you’ll find some of the best options for homeowners insurance in Birmingham based on premiums, coverage options, discounts, and customer service ratings.

Best company for cheap rates: Allstate

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.2/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
631
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$188/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$282/mo

Allstate has the cheapest homeowners insurance in Birmingham. The company also has a midrange rating in the J.D. Power 2024 U.S. Home Insurance Study.

Homeowners can get dwelling coverage, personal liability coverage, and personal property coverage. You can also increase your coverage limits with an umbrella policy and secure flood insurance through Allstate, as some parts of Birmingham are at higher risk. If you’re a business owner, you can get optional coverage to protect your business property.

Pros
  • Lowest home insurance rates in Birmingham

  • Many coverage types and optional coverages

Cons
  • Poor Trustpilot rating

  • Some complaints about roof claims

Best company for discounts: Travelers

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.8/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
609
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$167/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$261/mo

The median household income in Birmingham is $44,951, according to census data.[2] That’s a significant drop from the Alabama state median household income of $62,212.

The city has a 45% homeownership rate, and homeowners can look to Travelers for a number of discounts. You can score a 10% early quote discount, multi-policy discount, protective device discount, loss-free discount, and green home discount. New homeowners who purchased their homes in the last 12 months can also get a homebuyer discount.

Pros
  • Many optional coverages

  • Offers auto insurance, boat and yacht insurance, and workers’ compensation insurance

Cons
  • Below-average J.D. Power customer satisfaction rating

  • Low Trustpilot rating

Best company for older homes: Foremost

older homesForemost logoForemost

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
5.2/10
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$199/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$345/mo

Foremost home insurance provides coverage for a variety of home types, including older homes that may not qualify for standard insurance. Foremost also offers low rates for homeowners insurance in Birmingham. Plus, the company offers a range of coverage types that can make it easier to customize what you want in an insurance policy.

Pros
  • Competitive home insurance rates

  • Many optional coverages

Cons
  • Not rated by J.D. Power for customer satisfaction

  • Low Trustpilot rating

  • Our editorial team analyzed regional and national home insurance companies that sell policies in Birmingham to assess which offer the best rates, coverage options, customer service, and savings to homeowners. We prioritized competitive rates, 24/7 customer service, homeownership discounts or bundling options, and specialty or supplemental coverages.

Cheapest home insurance companies in Birmingham

If you’re looking for cheap homeowners insurance in Birmingham, Allstate has the lowest rates. Here, you can see which other insurance companies offer cheap home insurance in Birmingham and their average annual premiums.

Insurance Company
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Average Annual Premium
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Alfa$3,232
Allstate$1,344
Auto-Owners Insurance Company$3,303
Centauri Specialty Insurance Company$1,892
Cincinnati Insurance$1,876
Country$6,092
Encompass$2,828
Farmers$1,921
Foremost$1,784
Metropolitan$3,073
Nationwide$2,656
State Farm$2,808
Travelers$1,957
USAA$2,759

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How much is home insurance in Birmingham?

The average cost of homeowners insurance in Birmingham is $2,601 for a $300,000 policy with a $1,000 deductible. 

Home insurance costs fluctuate based on the age of the home, location, building materials, dwelling coverage level, fire protection services, your deductible, and weather-related events in your area.

Cost of home insurance by dwelling coverage in Alabama

A major part of your home insurance is your dwelling coverage. Your dwelling coverage limit is the amount it costs to fully replace or repair the structure of your property.

You may need to get a certain limit if you have a mortgage, though it’s possible to get higher levels of coverage. But your coverage limit correlates with the cost of your premium. Higher levels of coverage mean paying higher insurance premiums.

Here, you can see how your average annual premium shifts based on your coverage limit. All figures account for a $1,000 deductible.

Coverage Limit
sort ascsort desc
Average Annual Premium
sort ascsort desc
$100,000$2,166
$200,000$3,278
$300,000$4,317
$400,000$5,445
$500,000$6,544

Cost of homeowners insurance by deductible amount

If you file a home insurance claim, you typically need to cover the deductible. A deductible is the portion that you pay before your insurer steps in to cover a claim. A low deductible can result in a higher premium, whereas a high deductible can help lower your premiums.

Here, you can see how your premium can shift for $300,000 in dwelling coverage based on your deductible.

Deductible Amount
sort ascsort desc
Average Annual Premium
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$500$2,646
$1,000$2,601

Average cost of home insurance in other cities in Alabama

The average cost of home insurance differs by city and even ZIP code within the same city, so no two home insurance quotes are the same. Specific risks like crime and weather-related events can spike rates as well.

Historical FBI data shows that Birmingham has higher levels of property crime and burglary.[3] Some parts of the state can also be prone to wildfires and floods, which can affect rates.

Here, you can see how rates shift in different cities around Alabama. All average annual premiums are for $300,000 in dwelling coverage with a $1,000 deductible.

City
sort ascsort desc
Average Annual Premium
sort ascsort desc
Auburn$2,774
Birmingham$2,601
Daphne$8,148
Dothan$3,558
Enterprise$3,557
Fairhope$8,251
Madison$2,912
Mobile$5,577
Montgomery$2,873
Tuscaloosa$2,922

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What to know about owning a home in Birmingham

The average home value in Birmingham, Alabama, is $125,944.[4] While homeownership may be more accessible there than in other parts of the country, other factors can affect your home’s value and the cost of insurance.

These risks include flooding, severe wind, and tornadoes. Additionally, wildfires may pose a high or extreme risk to 803 communities and a moderate risk to 6,683 communities, according to the Alabama Forestry Commission.[5]

Alabama homeowners must purchase flood insurance separately from a standard home insurance policy. You can buy flood insurance through the National Flood Insurance Program (NFIP) on the FloodSmart.gov website. Luckily, standard home insurance covers regular fires and wildfires.

It’s important to consider the unique risks in your particular area. That may mean getting supplemental coverage in addition to your standard home insurance policy.

Birmingham home insurance FAQs

If you’re looking for home insurance in Birmingham, Alabama, here are some answers to frequently asked questions that can help you in your search.

  • The average cost of home insurance in Birmingham is $217 per month, or $2,601 per year, according to Insurify data. If you’re in a high-risk area, your lender may require you to get flood insurance, which can affect the total costs. You may also pay more or less for standard coverage depending on the risks in your area.

  • Allstate has the cheapest homeowners insurance in Birmingham, with an average annual cost of $1,344 for a $300,000 dwelling coverage policy. But remember that the cheapest coverage for you may be with another insurer, based on your unique risk factors. That’s why it’s important to compare quotes from several companies before making a decision.

  • The average cost of homeowners insurance in Alabama for a $300,000 dwelling coverage policy is $4,317 per year. Alabama home insurance costs vary based on different factors and depend on your specific insurance policy.

  • To help lower the cost of homeowners insurance in Birmingham, you can increase your deductible, bundle multiple insurance policies, improve your credit, and review potential discounts.

Methodology

Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.

Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:

Default Coverage Assumptions

  • Dwelling coverage: $300,000
  • Deductible: $1,000
  • Personal property limit: $25,000
  • Liability limit: $300,000

Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.

Sources

  1. City of Birmingham. "City of Birmingham Floodplain Management."
  2. U.S. Census. "Birmingham, Alabama."
  3. FBI. "Crime in the United States."
  4. Zillow. "Birmingham, AL Housing Market."
  5. Alabama Forestry Commission. "Is Your Home Protected From Wildfire?."
Melanie Lockert
Melanie Lockert

Melanie Lockert is the founder of the blog and author of the book, "Dear Debt." Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Allure, Business Insider, Credit Karma, Fortune, and more. She is also the co-founder of the Lola Retreat and host of the Mental Health and Wealth show podcast. She lives in Los Angeles and enjoys jazz music, traveling, coffee, and spending time with her two cats and partner.

Melanie has been a contributor at Insurify since November 2022.

Chris Schafer
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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