Homeowners insurance in Alabama

The cost of homeowners insurance in Alabama is $2,430 a year for the average amount of coverage. Alabama residents can compare rates from a dozen companies with Policygenius.

Kara McGinley

Kara McGinley

Published August 11, 2020

KEY TAKEAWAYS

  • The average cost of homeowners insurance in Alabama is $2,430 for $100,000–500,000 in coverage

  • The most affordable insurance company in Alabama is Safeco, according to Policygenius quote data

  • When deciding on policy coverage, Alabama residents should consider the state’s tornadoes and thunderstorms

Homeowners insurance is essential financial protection for the 69% of Alabama residents who own a home, especially given the state’s penchant for lighting, thunderstorms, and tornadoes.

The statewide average cost of homeowners insurance in Alabama is $2,430 but policy premiums can differ greatly based on specific factors related to your home and the details of your policy. Your rates will be directly impacted by your home’s condition and style of build, its location, your credit and claims history, and your policy deductible amount. Rates also vary from company to company for the same level of coverage, which is why it’s so important to compare policies from different companies — that’s where we come in.

To help simplify your shopping experience, Policygenius reviewed the five best homeowners insurance companies in Alabama offered through our website. We also calculated the cheapest and most expensive cities in Alabama for home insurance based on hundreds of submitted quotes.

Compare Alabama quotes here

IN THIS ARTICLE

The 5 best homeowners insurance companies in Alabama

Cost is an important factor when deciding on a homeowners insurance policy, but it shouldn’t be the only factor. It’s smart to do a little research on the company that will be insuring your house and all of your assets. A great homeowners insurance company is financially stable, has dependable customer service, affordable coverage, flexible policy options, and high quality discounts. Using those benchmarks, we determined the following five companies were the best homeowners insurance companies in Alabama. Read about our methodology here.

Best company for a cheap quote: Safeco

Safeco provides the cheapest Alabama home insurance quote of any Policygenius partner carrier. The average quote with Safeco is $1,562 for $100,000–500,000 in coverage, which is over $800 cheaper than the statewide average of $2,430.

Not only is Safeco a good budget pick, it also offers extensive coverage options. Safeco has four comprehensive tiers of coverage, and all include the option to add extended replacement cost, a policy add-on that increases your home’s coverage limits an additional 25% or 50% if rebuild costs exceed your dwelling coverage amount, which is ideal for homeowners in Southern Alabama.

Read our full review of Safeco here

Best company for superior coverage: Hippo

For a relatively low $2,215, Alabama residents can insure their homes with Hippo, a company that offers coverage as good as any we’ve reviewed. Hippo homeowners insurance includes all of the primary coverages you find in a standard home insurance policy, as well as several coverage enhancements like equipment breakdown coverage, service line coverage, water backup coverage, and computer coverage. Most companies will charge you extra for the aforementioned endorsements, but with Hippo it all comes packaged into their base policy.

Read our full review of Hippo here

Best company for a fast quote: Swyftt

Although Swyftt homeowners insurance isn’t available in all 50 states, it is available in Alabama. If you’re looking to get a quote fast, Alabama homeowners may find Swyftt to have the fastest turnaround time out of all insurers. After timing it to be completely sure, we discovered that after typing in your address and pressing the "Get Quote" button, Swyfft secures your quote in ~10 seconds.

In addition to their quick quoting, Swyfft also offers comprehensive and flexible policies at rates lower than the industry average. All policies include replacement cost contents coverage, adjustable limits for each of the primary coverages, and a number of endorsements and rate-saving opportunities.

Read our full review of Swyftt here

Best financial ratings: Travelers

One important indicator of an insurance company’s ability to pay out claims in an effective and timely manner is their financial stability, and Travelers is among the highest-rated insurers in that area. With an A++ rating with A.M. Best, Travelers has the highest score a company can receive with the insurance company credit rating agency. Travelers also has high marks with Standard & Poors, which measures long-term financial stability, as well as Moody’s, which measures what the expected losses would be if a company were to go into default.

Read our full review of Travelers here

Best replacement cost policy: MetLife

Alabama residents who live in southern regions of the state should consider an insurance company that offers maximum coverage. MetLife, with its excellent replacement cost coverage options, may be your best bet against volatile coastal weather. MetLife offers superior home and personal property protection, as homeowners have the option of insuring their home with guaranteed replacement cost coverage (covers a full rebuild of the home regardless of the cost) and their personal belongings with replacement cost coverage.

MetLife also has multiple coverage packages that provide enhanced protection for your expensive valuables and electronics, as well as identity theft protection at no extra cost.

Read our full review of MetLife here

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Average cost of homeowners insurance in Alabama by company

When comparing insurance companies, Alabama residents may find that rates differ greatly from company to company for the same level of coverage. The more expensive policy may provide more coverage add-ons in a basic plan than their competitors, or some companies may simply charge more for coverage in certain areas than others.

After reviewing hundreds of quotes submitted with Policygenius, we found that Safeco is the cheapest insurance company in Alabama with a $1,562 average annual premium for $100,000–500,000 in coverage. MetLife is the most expensive with a $3,486 average annual premium.

CompanyPolicyGenius RatingAverage cost
ASI6.6/10$2,121
EncompassNot rated$2,647
Hippo8/10$2,215
MetLife6.5/10$3,486
Nationwide7.7/10$2,319
Progressive6.6/10$2,214
Safeco7.3/10$1,562
State AutoNot rated$2,565
Travelers7.7/10$2,001

Average cost of home insurance in Alabama by coverage amount

The average cost of homeowners insurance in Alabama will also differ considerably based on the amount of insurance you have for your home. Below is the average homeowners insurance quote for five different levels of coverage.

Coverage AmountAverage Cost
$100,000-$200,000$ 2,139
$200,000-$300,000$ 2,243
$300,000-$400,000$ 2,763
$400,000-$500,000$ 3,138
Greater than $500,000$ 3,289

Average cost of home insurance in Alabama by city

Insurance companies will also price policies differently based on where you live. We found the city of Opelika has the lowest rates in the state with a $1,360 average annual premium for $100,000-500,000 in coverage. The most expensive area on average is Mobile with a $4,682 average annual premium.

CityAverage Cost
Alabaster$ 2,200
Auburn$ 1,898
Bessemer$ 2,268
Birmingham$ 1,999
Daphne$ 4,520
Decatur$ 2,536
Dothan$ 2,426
Enterprise$ 1,845
Florence$ 3,606
Gadsden$ 2,134
Hoover$ 1,791
Huntsville$ 1,811
Madison$ 1,788
Mobile$ 4,682
Montgomery$ 2,090
Northport$ 1,682
Opelika$ 1,360
Phenix City$ 2,062
Tuscaloosa$ 2,789
Vestavia Hills$ 2,059

We selected the 20 largest cities in Alabama by population where customers have submitted quotes with Policygenius. Quotes are based on a coverage amount between $100,000 and 500,000.

The cheapest cities for homeowners insurance in Alabama

alabama-cheapest-homeowners-insurance

The most expensive cities for homeowners insurance in Alabama

alabama-most-expensive-homeowners-insurance

Guide to homeowners insurance in Alabama

Common causes of home insurance loss in Alabama

Alabama has a diverse landscape, containing plains, mountains, and rivers. Alabama homeowners are at risk of both tropical storms and tornadoes — the state typically has two tornado seasons, one in the spring and another in the fall. One of the biggest weather related threats to Alabama homeowners is lightning and thunderstorms, both of which are covered under homeowners insurance. Given the state’s propensity for storms, hurricanes, and tornadoes, it’s extra important for Alabama residents to insure their home with a comprehensive replacement cost policy to ensure their home and personal belongings are fully protected in the event of a disaster.

Does homeowners insurance cover flooding in Alabama?

Homeowners insurance does not cover flood damage in Alabama or any of the other 49 states. Alabama residents can supplement that gap in coverage by purchasing a flood insurance policy. Flood insurance can typically be provided through the same insurance company that insures your home.

Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.

Alabama Department of Insurance

The Alabama Department of Insurance is a valuable resource for both Alabama homeowners purchasing coverage for the first time or those who are already insured. The ADOI website has helpful information about what to prioritize when selecting your coverage, preparing for a hurricane, and buying flood insurance.

What if I can’t get homeowners insurance?

Homeowners insurance companies can cancel your insurance for a number of reasons — maybe the insurance company no longer offers coverage where you live or maybe they determined your home was too risky to insure after a recent inspection.

If you’re struggling to find coverage, you can get last-resort coverage via a Alabama Fair Access to Insurance Requirements (FAIR) Plan. The Alabama FAIR plan is offered by the Alabama Insurance Underwriting Association.

The Alabama Insurance Underwriting Association insures coastal properties where the homeowner has not been able to find private coverage elsewhere. To qualify for a FAIR Plan, you need to demonstrate that you’ve had at least three unsuccessful attempts to buy insurance from other companies.

Not where you live? We've got you covered, check out our guide to homeowners insurance in your state

About the author

Insurance Editor

Kara McGinley

Insurance Editor

Kara McGinley is an Insurance Editor at Policygenius. She previously worked as a freelance writer and a copywriter for various startups. Her work can be found in Teen Vogue, The Culture Crush, Mask Magazine, and more.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

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