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How to find affordable homeowners insurance in Birmingham

Home insurance should be a critical consideration for every homeowner. Along with personal property, homeowners insurance covers your dwelling in the event of many perils, including theft, fire, wind damage, and vandalism. Given the relatively frequent occurrence of these incidents and the substantial cost of replacing a home, a homeowners insurance policy is a solid investment. The average homeowners policy costs $103 per month in Birmingham, Alabama. This is less than what the average American pays to insure their home.

The cost of home insurance coverage depends on myriad factors, including the value of the dwelling, the value of your personal items, and the materials used to construct the home. Your home's location can also impact how much you pay, as some locations are more prone to destructive hazards. If your area is at risk of being affected by hail, strong winds or fire, your premiums could be substantially higher than average. Find out more about the specifics of home insurance coverage.

If you want to find affordable home insurance in Birmingham, begin by looking around and comparing different policies. Review our summary showing average home insurance premiums in Birmingham to start your home insurance search with as much information as possible. Note that the yearly cost of homeowners coverage is determined based on your chosen coverage limits and other rating factors.

 
Table of contents:
  1. Rates by insurer
  2. Rates by coverage amount
  3. Rates by ZIP code
  4. Rates by deductible amount
  5. Policy bundling savings

 

Birmingham home insurance by company

What you pay for homeowners insurance in Birmingham depends on the insurance company through which you purchase your policy. Allstate offers the most affordable home insurance in Birmingham, at just $1,231 per year. This compares favorably to the city’s average homeowners premium of $2,110.

Begin your search for a home insurance policy by reviewing the cheapest companies in Birmingham, Alabama, listed below.

 
AFFORDABLE HOME INSURERS IN BIRMINGHAM
Company Average Annual Rate
Allstate $1,231
Metropolitan $1,322
Centauri Specialty $1,743
AAA $1,762
USAA $1,939

 

Birmingham homeowners insurance prices by coverage level

How much you spend on home insurance coverage is greatly impacted by the level of coverage you choose. In Birmingham, carrying $200K dwelling coverage costs an average of $1,670, while carrying additional coverage up to $400K costs $2,514 per year.

 
POPULAR COVERAGE LIMITS IN BIRMINGHAM
Coverage Level Average Annual Rate
$100K Dwelling $1,001
$200K Dwelling $1,670
$250K Dwelling $1,791
$400K Dwelling $2,514

 

Birmingham home insurance rates by ZIP code

Depending on which part of Birmingham you live in, you may see vastly different home insurance costs. The number of claims filed in your local area can be a factor in determining the price of your policy. Put simply, the neighborhood you live in could have a huge impact on how much you pay for homeowners coverage.

If you're looking for the most affordable homeowners coverage in Birmingham, take a look at the 35242 ZIP code. In the 35242 area, homeowners coverage usually costs just $1,651 on average: $459 less than the overall average for Birmingham. If you’re looking for the areas with the least expensive homeowners premiums in Birmingham, have a look at the table below.

 
AFFORDABLE HOME INSURANCE AREAS IN BIRMINGHAM
ZIP Code Average Annual Home Insurance Rate
35242 $1,651
35243 $1,838
35244 $1,848

Other parts of Birmingham, however, have homeowners insurance premiums that are higher on average. Crime rates, fire risk, and even your how close you are to emergency services such as fire and police stations could impact rates the risk level of certain parts of the city, which could drive up area rates. One of the costliest ZIP codes for home insurance in Birmingham is 35254, with an annual average rate of $2,576.

 
EXPENSIVE HOME INSURANCE AREAS IN BIRMINGHAM
ZIP Code Average Annual Home Insurance Rate
35254 $2,576
35294 $2,403
35249 $2,387

 

Birmingham homeowners insurance deductibles

One of the decisions to be made when buying a homeowners insurance policy is how high to set your deductible. A homeowners deductible is how much your insurance requires you to pay out of pocket toward a claim. Choosing your deductible impacts how much you pay for homeowners insurance.

When thinking about your deductible, a good rule of thumb is that the lower your deductible, the higher your premiums. This means that those looking for lower home insurance costs will want to seriously consider a higher homeowners deductible. It's worth noting that a home insurance deductible should only be as high as you can reasonably pay in the case of a loss.

The chart below reveals the average premium costs associated with standard homeowners deductibles.

 
HOME INSURANCE PREMIUMS BY DEDUCTIBLE LEVEL IN BIRMINGHAM
Deductible Level Average Annual Homeowners Insurance Rate
$500 $1,937
$1,000 $1,791
$1,500 $1,719
$2,000 $1,599
$5,000 $1,362
 

Home and auto insurance bundling in Birmingham

One way to save on insurance costs is to think about bundling your homeowners and auto insurance policies through the same company. Bundling homeowners and auto insurance can be a good money-saving option. By bundling your policies, Birmingham homeowners could see annual savings of 11% on average.

 
CHEAPEST CAR INSURANCE RATES WITH HOME BUNDLE IN BIRMINGHAM
Company Avg. Annual Auto Insurance Rate (With Bundle)
USAA $881
GEICO $1,060
Allstate $1,293
Alfa $1,516
Progressive $1,561
 

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Kristine Lee photo
Kristine LeeManager, Content and Data

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a freelance copywriter for over five years. 

She is an authority on all things insurance and covers the ins and outs of auto, home, life and renters insurance. Her specialty is in providing data-backed insights and information to help insurance shoppers make informed decisions.

Kristine's insurance expertise and research have been cited by publications such as CNBC, BadCredit.orgCar and Driver, Business Insider, Yahoo!, The Balance, Nationwide and Elephant.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.