Best cheap homeowners insurance in Huntsville

The best home insurance companies in Huntsville 

To find the best home insurance, Huntsville homeowners may need to do some research — or let Bankrate do it for you. Our insurance editorial team looked at average rate data from Quadrant Information Services, customer satisfaction 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 among the best home insurance companies in Huntsville.

The cheapest home insurance companies in Huntsville 

Home insurance in Huntsville, Alabama, costs $2,714 per year for a policy with a $300,000 dwelling coverage limit. But shopping around could help homeowners score a lower rate. 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 Centauri offer some of the cheapest home insurance in Huntsville for $300,000 in dwelling coverage.

In the tables below, browse average rates for various dwelling amounts.

How much is home insurance in Huntsville, Alabama?

Home insurance in Huntsville costs an average of $2,714 per year for a policy with a $300,000 dwelling coverage limit. This is 9 percent less than the average cost of home insurance in Alabama.

Home insurance costs 31 percent more in Alabama, on average, compared to the national average of $2,329. 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 gulf shores) 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

Insurers tend to reward homeowners who have excellent credit with the cheapest rates while charging higher prices to homeowners with bad credit. This is because insurance companies view poor credit as a sign of financial risk. They pass this risk on to the consumer through higher premiums. To combat these higher rates, you can work on rebuilding your credit by making payments on time, paying down debt and not overextending yourself financially. Although it takes time, working toward a better credit score does pay off. Our research shows that homeowners with excellent credit pay 54 percent less on average compared to homeowners in Huntsville with poor credit.

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.

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.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 2025 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: $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $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, $1,500, $2,000 or $5,000 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, 2017 (base) and 2020.”

Bankrate Scores

Our 2025 Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach. 

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.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, our team analyzed 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 National Association of Insurance Commissioners (NAIC).
• 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 S&P and Moody’s and factored in a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.