The average cost of homeowners insurance in Alabama is $172 a month or $2,073 per year for $300,000 in dwelling coverage, according to our analysis of 2022 rates.
However, don't be surprised to see your home insurance rates go up this year due to an increase in extreme weather in Alabama that's brought with it damaging tornadoes, large hail, severe winds, and flooding. As of April 2023, Alabama has already seen 64 tornadoes damage homes across the state — the highest of any other U.S. state so far this year. [1]
Worse, some insurers are pulling out of high-risk coastal communities in Mobile and Baldwin counties in Alabama completely due to the risk of expensive claims. [2]
If you're struggling to purchase home insurance through one of the top companies featured in our guide, you might want to look into coverage through the Alabama Insurance Underwriting Association (AIUA) — your state's FAIR Plan designed as a last-resort option for homeowners struggling to find coverage on the private market.
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Best homeowners insurance companies in Alabama
Of the companies we evaluated, USAA has the lowest home insurance rates in Alabama with an average annual policy cost of $1,038 per year — over $1,000 less than the state average. Farmers have the next lowest average rate at $1,312 per year.
Policygenius analyzed thousands of quotes from the 5 largest Alabama insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Alabama residents to find the best homeowners insurance in Alabama.
Company | Average yearly cost | J.D. Power Rating |
|---|---|---|
State Farm | $1,826 | 835 |
Alfa Insurance | $3,631 | -- |
Allstate | $1,349 | 829 |
USAA | $1,038 | 882 |
Farmers | $1,312 | 813 |
There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.
Pros
Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage
Get up to $1 million in personal liability coverage
Score discounts for bundling, installing security devices, and choosing a high deductible
File and track claims online, over the phone, in person, or through its mobile app
High customer satisfaction and financial strength ratings
Cons
No discounts for first-time homebuyers or going a year without a claim
Read our full State Farm home insurance review
Why State Farm tops our best list
With a score of 835 out of 1,000, State Farm has one of the highest scores in J.D. Power’s annual home insurance study, which grades insurance companies based on policy price, policy options, claims handling, and more. Customers can file and track claims online, over the phone, or through the mobile app.
How to get a quote
Online through State Farm
Founded over 75 years ago, Alfa Insurance is one of the most popular home insurance companies in the South. We especially love its home systems protection that covers breakdowns of appliances, HVAC systems, and more — ideal for older homes.
Pros
Save on premiums by bundling your home and auto insurance, choosing a high-deductible policy, or going years without a claim
Offers up to $100,000 in coverage for appliances, hot water heaters, AC units, and other home systems
Fewer-than-average customer complaints
File claims online or through its mobile app
Cons
Fewer discounts compared to other insurance companies
Why Alfa Insurance tops our best list
Alfa Insurance is one of the most popular insurance providers in the south. Customers can save money by bundling their home and auto policies together and choosing a higher deductible. Alfa also offers a unique coverage options, including its home systems protections that covers appliance breakdown due to mechanical or electrical problems.
How to get a quote
Online through Alfa
Why Allstate tops our best list
Allstate is one of the highest rated insurance companies in Alabama, scoring an 829 out of 1,000 in J.D. Power’s 2021 home insurance study. Part of Allstate's appeal is how accessible it is to the average homeowner. From numerous resources and tools to help you determine how much coverage you need to its user-friendly mobile and website that you can use to manage your policy and file claims, Allstate is a great option for first-time Alabama homebuyers.
How to get a quote
Online through Policygenius and Allstate
Why USAA tops our best list
No other home insurance provider stands out better than USAA when it comes to offering coverage tailored for U.S. military members and their families. USAA is known for its comprehensive base policy, which includes coverages that typically cost extra with other insurers. In addition to unbeatable coverage, USAA also scores well in customer and claims satisfaction ratings with J.D. Power.
How to get a quote
Online or by calling USAA
Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.
Pros
Several discounts and unique ways to save, including claim forgiveness and declining deductibles
3 flexible coverage packages with varying levels of protection for most coverage and budget needs
Offers extended and guaranteed replacement cost coverage options
File claims online, via text, on its mobile app, or by calling its claims center
Cons
Rates are typically more expensive
Below-average customer satisfaction ratings
No repair network to help you find a certified contractor or repair professional after filing a claim
Read our full Farmers home insurance review here
Why Farmers tops our best list
Farmers offer 3 flexible coverage packages for most coverage and budget needs. Additionally, Farmers is known for its plethora of policy perks, including declining deductibles and claims forgiveness, which rewards you for being a loyal Farmers customer or going a certain number of years without filing a claim.
How to get a quote
Online through Farmers
Cheapest homeowners insurance companies by city in Alabama
Looking at average home insurance costs for the 15 most popular insurers in Alabama, we found that the cheapest homeowners insurance companies in the state are Allstate, Nationwide, and USAA.
The average Allstate rate in Mobile is $937 per year, which is a particularly good rate because of its location near the Gulf Coast, where tropical storms are common. Meanwhile, residents in the state capital of Birmingham enjoy average rates of $1,074 per year with USAA.
City | Company | Average yearly cost |
|---|---|---|
Alabaster | Farmers | $772 |
Auburn | USAA | $869 |
Birmingham | USAA | $1,074 |
Daphne | Allstate | $937 |
Decatur | USAA | $972 |
Dothan | Nationwide | $936 |
Enterprise | Nationwide | $936 |
Florence | USAA | $979 |
Gadsden | USAA | $1,063 |
Hoover | USAA | $833 |
Huntsville | USAA | $1,027 |
Madison | USAA | $984 |
Mobile | Allstate | $937 |
Montgomery | USAA | $960 |
Northport | USAA | $949 |
Opelika | Nationwide | $901 |
Phenix City | Nationwide | $901 |
Prattville | USAA | $879 |
Tuscaloosa | USAA | $944 |
Vestavia Hills | USAA | $834 |
Shopping for homeowners insurance in Alabama
Shopping for home insurance in Alabama is a good idea to ensure you and your family are protected when severe weather strikes. By partnering with Policygenius, you can be sure you'll find the right coverage at a competitive price.
In this section, we break down the average annual home insurance rates in Alabama for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies for dog and pool owners and those with bad credit.
Alabama home insurance costs by coverage amounts
Dwelling coverage is the part of your home insurance policy that pays to rebuild or repair your home after a covered loss. Your dwelling coverage should be equal to your home’s replacement cost, not its current market value or purchase price.
An Alabama home with $200,000 in dwelling coverage costs around $1,600 less to insure than a house with $500,000 in coverage.
Dwelling coverage amount | Average yearly cost |
|---|---|
$100,000 | $1,061 |
$200,000 | $1,566 |
$300,000 | $2,063 |
$400,000 | $2,575 |
$500,000 | $3,150 |
Personal liability coverage is the part of your home insurance policy that pays for medical, legal, and repair bills if you're legally responsible for an injury or property damage.
Liability coverage amount | Average yearly cost |
|---|---|
$100,000 | $2,152 |
$200,000 | $2,263 |
$300,000 | $2,063 |
$400,000 | $1,246 |
$500,000 | $2,155 |
Alabama home insurance costs by deductible amount
Your deductible is the amount you're responsible for paying on each covered claim before your insurance kicks in.
A higher deductible means lower monthly payments, but more out-of-pocket expenses when you file a claim. Since Alabama sees a lot of damage from tornadoes and severe weather, be careful not to set your deductible at an amount you can't afford in the event of a major loss.
As you can see in the table below, Alabama residents can save around $375 per year on home insurance by choosing a $2,000 deductible over the $500 option.
Deductible amount | Average yearly cost |
|---|---|
$500 | $2,345 |
$1,000 | $2,063 |
$2,000 | $1,974 |
Home insurance discounts in Alabama
Many insurance providers offer discounts to homeowners if their homes have certain features like deadbolt locks, smoke detectors, or home security systems.
Discount | Average yearly cost |
|---|---|
Dead bolt | $2,062 |
Smoke alarm | $2,042 |
Burglar alarm | $1,887 |
Home insurance companies in Alabama for dog owners
If you purchase a dog that your insurance provider considers to be a “dangerous breed," you may see higher home insurance rates. Some companies charge higher rates for certain breeds and may even deny you coverage altogether because of the higher probability of attacks and liability claims.
With an average rate of $1,038 per year, USAA has the cheapest home insurance rates in Alabama for a home with a dangerous dog breed, while Alfa's rate of $3,631 is the highest.
Company | Average yearly cost |
|---|---|
USAA | $1,038 |
Farmers | $1,312 |
Allstate | $1,349 |
State Farm | $1,826 |
Alfa Insurance | $3,631 |
Home insurance companies in Alabama for poor credit
Late and missed payments on your rent, car payment, and credit cards not only mess with your credit, but it also leads to higher insurance rates with some companies.
Insurance companies consider a poor credit score to be an indicator of risky behavior and more frequent home insurance claims, and will often charge higher rates to customers with low scores.
With an average rate of $1,443 per year, USAA has the cheapest home insurance rates in Alabama for a homeowner with poor credit. Meanwhile, Alfa's yearly rate of $5,957 is the highest.
Company | Average yearly cost |
|---|---|
USAA | $1,443 |
Allstate | $2,348 |
Farmers | $2,900 |
State Farm | $3,134 |
Alfa Insurance | $5,957 |
Home insurance companies in Alabama for pool owners
Home insurance rates are often higher for if you have a swimming pool because of the risk of injuries and higher probability of liability claims.
With an average rate of $1,038 per year, USAA has the cheapest home insurance rates for Alabama homes that have a swimming pool, while Alfa has the most expensive rates at $3,631 per year.
Company | Average yearly cost |
|---|---|
USAA | $1,038 |
Farmers | $1,312 |
Allstate | $1,349 |
State Farm | $1,826 |
Alfa Insurance | $3,631 |
How to buy homeowners insurance in Alabama
With its location in between Dixie Alley and the Gulf Coast, Alabama homeowners need to have adequate home insurance to properly safeguard their property.
We've rounded up tips in the section below to help you find the best home insurance coverage at the best price.
Reach out to a licensed Policygenius agent. Our team of home insurance experts will help you find the right coverage for your house at a price that suits your budget needs.
Ask if you should purchase flood insurance or more hurricane coverage. With hurricane season in Alabama spanning from June through November, coastal Alabama homeowners may want to consider purchasing flood insurance or adding dwelling enhancements to their home insurance like extended or guaranteed replacement cost coverage.
Do you need a $1,000 or $2,000 deductible? A higher deductible means you’ll pay less upfront for your home insurance, but more out of pocket when it's time to file a claim. A Policygenius agent can help you pick out a deductible that works within your budget.
Compare quotes from a Policygenius agent. Once you’ve identified your coverage needs and you input a few details about your house, a Policygenius agent will send over quotes from multiple companies for you to compare.
Sign and pay your first premium. After you’ve settled on a home insurance policy that works for you and your house, all that's left for you to do is sign on the dotted line and pay your first premium. Policygenius will take it from there.
Frequently asked questions
What is the average home insurance policy cost in Alabama?
The average home insurance policy cost in Alabama is $172 a month or $2,063 per year. That’s nearly on par with the national average of $1,899 per year.
Is it mandatory to have home insurance in Alabama?
While it’s not legally required to have home insurance in Alabama, many mortgage lenders require you to purchase home insurance before extending a home loan. Lenders have a financial interest in your property until you pay off the note, so they want to ensure it’s fully protected.
How can I lower the cost of my home insurance in Alabama?
The quickest way to lower the cost of your home insurance is by comparing quotes with Policygenius. Once you’ve reviewed your options, ask about any discounts available to you, and select the policy that works best for you.
Why does my credit score affect my home insurance rates?
Your credit score says a lot about you including if you pay your bills on time and how much credit you’ve been extended. To insurance companies, it also establishes whether you’re high or low risk because poor credit is often an indicator that you’re more likely to file an insurance claim for small damages or losses.
When is tornado season in Alabama?
Tornado season in Alabama falls during two different times of the year: A spring season in March, April, and May and a fall season in November and December.
