5 Best Montgomery Homeowners Insurance Companies (2025)
Allstate, State Farm, and Nationwide offer some of the best homeowners insurance policies in Montgomery, Alabama.
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Written byErin Gobler
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Over 5 years of experience in financial writing
Certified in financial planning by Boston University
Erin is a writer and journalist specializing in personal finance. With more than five years of experience, Erin has covered topics such as credit cards, mortgages, insurance, and more.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Table of contents
Homeowners in Montgomery, Alabama, pay an annual average of $2,438 for a home insurance policy with $300,000 in dwelling coverage and a $1,000 deductible. The state of Alabama is at risk of natural disasters, including tornadoes and hurricanes, which can result in high insurance rates.
That said, Montgomery has lower risk and significantly lower insurance rates than elsewhere in the state, perhaps because it’s further from the coast.
Here’s what you should know about homeowners insurance in Montgomery, including the best insurers and how much coverage you need.
Quick Facts
Allstate, State Farm, and Nationwide are a few of the cheapest home insurers in Montgomery.
Montgomery has a moderate risk of flooding. If your home faces flooding risks, you may want to purchase a separate flood insurance policy.
On average, Montgomery homeowners pay lower rates than the Alabama state annual average of $2,918.
Best home insurance companies in Montgomery
You have plenty of homeowners insurance companies to choose from in Montgomery. No single company works best for everyone, but a few stand out for Montgomery homeowners based on their average premiums, customer service, coverage options, and discounts.
Start your search for home insurance with the best home insurance companies below.
Allstate: Best for affordable rates
AllstateCompare 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. | $108/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. | $162/mo |
Allstate offers some of the cheapest rates for homeowners in Montgomery. In addition to its affordable rates, Allstate offers numerous discount opportunities. You can earn discounts when you buy a new home, switch from another company, or set up certain payment features.
Pros
Affordable premiums
Many homeowners insurance discounts
Offers add-on coverage for home-sharing
Cons
Below-average customer satisfaction rating in J.D. Power study[1]
Many complaints filed with the National Association of Insurance Commissioners (NAIC)
Wind-mitigation discount not available in Alabama
State Farm: Best for personalized service
State FarmCompare 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. | 643 |
| $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. | $217/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. | $302/mo |
State Farm frequently tops the list of companies with the best customer service, thanks in part to its extensive network of local insurance agents. You’ll have many options for agents to work with in Montgomery, and having this hands-on service makes navigating your policy easier. State Farm also has above-average customer satisfaction scores, as well as a relatively low number of customer complaints for its home policies.
Pros
Many local insurance agents
Above-average J.D. Power customer satisfaction rating
Policies include inflation protection
Cons
Flood insurance not available
Fewer discounts than many competitors
Online quotes not available for everyone
Nationwide: Best for coverage options
NationwideCompare 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. | 8.4/10 |
|---|---|
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 641 |
| $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. | $225/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. | $333/mo |
Nationwide offers more coverage options than some other insurers. It has key coverages, such as earthquake and flood insurance, better roof replacement, equipment breakdown coverage, and more. Nationwide also offers an impressive array of discounts, including those for having a smart home, installing certain protective devices, and upgrading certain home systems. Customers are also generally satisfied with Nationwide, according to J.D. Power’s latest home insurance study.
Pros
Above-average J.D. Power customer satisfaction rating
Many coverage options and discounts
Many local agents
Cons
Above-average rates in Montgomery
High number of complaints with the NAIC
Online quotes not available for everyone
Farmers: Best for discounts
discounts
Farmers
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. | 8.4/10 |
|---|---|
| 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. | $127/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. | $206/mo |
Farmers offers a variety of discounts for its homeowners insurance policies, including savings for affinity groups, bundled policies, and smart home and home safety features. Farmers even offer a discount for current renters insurance customers who buy a home. The insurer also offers a range of coverage options, including optional water backup, valuable items, identity fraud expense, matching of undamaged property, and residence glass coverage.
Pros
Many homeowners insurance discounts
Low number of complaints for homeowners insurance
Optional guaranteed replacement cost coverage
Cons
Below-average J.D. Power customer satisfaction rating
Minimal bundling discount compared to other insurers
Relatively few local agents
USAA: Best for military families
USAACompare 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. | 8/10 |
|---|---|
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 737 |
| $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. | $223/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. | $325/mo |
USAA is the most popular insurance company for military families. It offers comprehensive coverage options, including add-ons for home sharing, earthquake insurance, and specialized coverages for active-duty and active reserve members. While it has more expensive homeowners insurance rates than some other insurers in Montgomery, USAA has consistently positive customer satisfaction ratings.
Pros
Special policy features for active-duty military
Many coverage options
Above-average J.D. Power customer satisfaction rating
Cons
Minimal bundling discount compared to other insurers
Available only to military members and families
No local insurance agents
Our editorial team analyzed regional and national home insurance companies that sell policies in Montgomery 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.
How much is home insurance in Montgomery?
The average annual cost of homeowners insurance in Montgomery is $2,438 for a policy with $300,000 in dwelling coverage and a $1,000 deductible. That’s slightly lower than the national average of $2,511 and the average rate of $2,918 for Alabama.
Each person’s premium will vary based on their unique situation. Several factors play into your home insurance rates, including your home’s condition and features, claims history, coverage amounts, deductible, and more.[2]
Comparing personalized quotes, either directly from home insurance companies or using an insurance-comparison tool, is the best way to get the most accurate rates.
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Cheapest home insurance companies in Montgomery
Though insurance premiums will vary based on your personal situation, a few companies offer some of the cheapest rates to Montgomery homeowners. You can compare average rates from the cheapest insurers by dwelling coverage amounts in the table below.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Insurance Company  | Average Annual Premium |
|---|---|
| Allstate | $1,104 |
| Farmers | $1,140 |
| Travelers | $1,788 |
| Foremost | $1,920 |
| USAA | $1,992 |
| State Farm | $2,016 |
| Encompass | $2,052 |
| Nationwide | $2,052 |
| Auto-Owners | $2,220 |
| COUNTRY Financial | $2,652 |
| Alfa | $3,048 |
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,944 |
| Farmers | $2,472 |
| State Farm | $3,624 |
| Travelers | $3,684 |
| Encompass | $3,792 |
| USAA | $3,900 |
| Nationwide | $3,996 |
| Auto-Owners | $4,356 |
| Foremost | $5,076 |
| COUNTRY Financial | $5,148 |
| Alfa | $5,712 |
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $2,796 |
| Farmers | $3,624 |
| State Farm | $4,776 |
| Encompass | $5,100 |
| Travelers | $5,268 |
| USAA | $5,292 |
| Nationwide | $5,724 |
| Auto-Owners | $5,976 |
| COUNTRY Financial | $7,308 |
| Foremost | $7,440 |
| Alfa | $7,884 |
How much homeowners insurance do you need in Montgomery?
Homeowners insurance in Alabama typically includes the following key coverages: dwelling, other structures, personal property, additional living expenses, and liability coverage.
When you’re buying a policy, it’s important to purchase enough coverage to repair or replace your home after a claim. Your rebuilding costs aren’t necessarily the same as your home’s value or the amount you paid for it, so it’s important to assess the true cost to rebuild.
A few of the factors that will affect your rebuilding costs include:
Local construction costs
Your home’s size, style, and layout
Your home’s materials
Other structures on your property
Any custom features
You can get a rough estimate of your necessary dwelling coverage by multiplying your home’s square footage by the local building costs per square foot.[3] But this won’t account for any features or factors unique to your home. Your insurance agent should be able to help you get a more accurate estimate.
You’ll also have to choose how much liability coverage you want. Most policies come with a minimum of $100,000 of liability coverage, but you can purchase more if you think your situation warrants it.
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Learn More: What Does Home Insurance Cover?
What to know about home insurance in Montgomery, AL
When you’re shopping for home insurance in Montgomery, it’s important to consider risk factors unique to your location. For example, due to its coastal location, Alabama is vulnerable to hurricanes and other extreme storms, which can cause severe flooding.
Standard home insurance policies don’t include flood insurance. Instead, you have to purchase a separate flood insurance policy, either through a private insurer or through the National Flood Insurance Program (NFIP).[4] Many popular insurers, including several on our list of top Montgomery insurers, offer policies through this program.
Alabama is also at risk of tornadoes. The state had 71 tornadoes in 2024 alone, according to the National Weather Service.[5] The good news is that homeowners insurance usually covers damage from high winds, including tornadoes, so you don’t have to purchase a separate policy.
When buying homeowners insurance, make sure to consider your unique risks, as well as optional coverages you may want to add to your policy. For example, many policies only cover valuables up to a certain dollar amount but allow you to purchase additional coverage for more valuable items, like jewelry. Assess your unique situation to decide if that’s necessary.
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Average cost of home insurance in other cities in Alabama
The cost of homeowners insurance varies across Alabama by city and ZIP code. Location-based factors, such as weather patterns, crime rates, and population density, can all affect rates.
Montgomery has some of the most affordable homeowners insurance rates in Alabama. The table below breaks down the average premium across Alabama cities.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
City | Average Annual Premium: $300,000 in Dwelling Coverage |
|---|---|
| Montgomery | $2,496 |
| Huntsville | $2,520 |
| Birmingham | $2,628 |
| Mobile | $4,620 |
Montgomery homeowners insurance FAQs
The following information can help answer your remaining questions about homeowners insurance in Montgomery.
Home insurance in Montgomery costs an average of $2,438 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible. Your rates will vary depending on the characteristics of your home and your personal situation. It’s best to get personalized quotes for the most accurate idea of how much you’ll pay.
Allstate has the cheapest homeowners insurance premiums in Montgomery, with average rates of $142 per month. But another company may have cheaper coverage for your specific situation.
The best home insurance company for you depends on the type of coverage you’re looking for, discounts you may qualify for, your budget, and other key factors. But a few of the best home insurers in Montgomery include Allstate, State Farm, and Nationwide.
Insurance companies in Alabama may legally consider your credit history as a factor when setting insurance rates. Generally, the better your credit history, the less you’ll pay for insurance, and vice versa.[6]
The average cost of homeowners insurance with $500,000 in dwelling coverage and a $1,000 deductible is $3,727 per year in Montgomery. In Alabama, the average cost for the same amount of coverage is $4,501 per year.
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.
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Sources
- J.D. Power. "Homeowners Insurance Premium Increases Threaten Customer Loyalty, Long-Term Profitability, J.D. Power Finds."
- National Association of Insurance Commissioners. "Searching for a Homeowners Insurance Policy? Tips to Get the Most Value."
- Insurance Information Institute. "How much homeowners insurance do I need?."
- Alabama Insurance Department. "An Insurance Preparedness Guide for Natural Disasters."
- National Weather Service. "Alabama Tornado Database 2024."
- Alabama Department of Insurance. "How Credit-Based Insurance Scores Impact Your Premium."
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Erin Gobler
Erin Gobler is a personal finance writer and journalist based in Madison, Wisconsin. With more than five years of experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more. Her work has been featured in major publications like Business Insider, Fox Business, and Time. Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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