Más de 10 años escribiendo sobre seguros y finanzas personales
Ex editora asociada de finanzas de Investopedia
Jess es experta en seguros, banca y otros temas de finanzas personales. Sus artículos han aparecido en numerosos medios de comunicación web, como Investopedia.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Homeowners in Alabama pay an average of $2,947 each year for a policy with $300,000 in dwelling coverage and a $1,000 deductible. But some insurance companies offer more affordable coverage than others.
Depending on your location in Alabama, natural disasters like severe thunderstorms, tornadoes, or hurricanes could threaten your home and property. Adding a windstorm rider to your standard homeowners insurance could offer more comprehensive protection.
Here’s what you should know about comparing quotes and finding homeowners coverage in Alabama.
Quick Facts
Home insurance costs in Alabama are higher than the national average of $2,529 per year for $300,000 in dwelling coverage with a $1,000 deductible.
Some insurers offer special discounts for Alabama homeowners with reinforced roofs, storm shutters, and more.
Homes in Alabama could be vulnerable to tornadoes, severe thunderstorms, and hurricanes, which could drive up home insurance costs.
Best home insurance companies in Alabama
People seeking home insurance in Alabama have no shortage of great options. Many top-notch insurers provide coverage in the state, but the best home insurance company for you will depend on your situation and specific needs.
The companies listed below are a good place to start your search.
Insurance Company
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.
Average Annual Premium
Best For
Foremost
2.6
$2,079
Cheapest rates
State Farm
4.1
$2,565
Protective feature discounts
Allstate
4.1
$2,704
Optional coverages
USAA
4.0
$3,346
Military members and families
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
Cheapest rates: Foremost
cheapest ratesForemost
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.
5.2/10
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A
$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.
$236/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.
$405/mo
Foremost is a branch of Farmers Insurance, and it offers some of the lowest average rates for Alabama homeowners. The company also offers several discounts that could further reduce the cost of your coverage. Qualifying homeowners can get a multi-policy, claims-free, home safety device, and age-of-home discount.
Overall, Foremost is a great choice for cost-conscious homeowners looking for affordable home insurance.
Pros
Most affordable coverage in Alabama
Several available discounts
Cons
Instant homeowners quotes not available online
Higher-than-average number of complaints logged with the National Association of Insurance Commissioners (NAIC) for a company of its size
Best insurer for protective feature discounts: State Farm
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.
$267/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.
$372/mo
While many insurers offer discounts, State Farm offers an array of discounts that could help Alabama homeowners specifically. As a homeowner, you can take advantage of a reinforced roofing discount, wind mitigation discount, and more standard options like bundling discounts. Taking proactive steps to protect your home and personal belongings from tornadoes or hurricanes could result in big savings.
State Farm also offers flexible deductibles, so you can choose a higher deductible to obtain a lower premium.
Pros
Reinforced roofing and wind mitigation discounts available
Long-standing insurance company
Cons
Not the cheapest available coverage
Higher-than-average number of complaints logged with the NAIC
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.
$142/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.
$217/mo
Allstate offers all the standard coverage options Alabama homeowners can expect, including dwelling coverage, personal property coverage, personal liability coverage, and other structures coverage. But this insurance company also offers a broad range of optional coverages that provide helpful protection. You can get coverage for water and sewer backups, sports equipment, musical instruments, yard and garden equipment like ride-on mowers, and more.
In addition to offering many coverage options, Allstate offers a range of discounts for Alabama homeowners, including windstorm mitigation, claims-free, and multi-policy discounts.
Pros
Wind mitigation discount available
Many optional coverages available
Cons
Many negative reviews on Trustpilot
Below-average J.D. Power customer satisfaction rating
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.
$254/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.
$373/mo
Alabama is home to eight military installations and around 377,000 veterans.[1] If you’re a veteran seeking affordable home insurance, a policy from USAA is worth considering. This insurer has specialized in offering coverage to active-duty military, veterans, and their qualifying family members since its founding in 1922.
USAA also offers extended coverage through its Home Protector coverage option. This policy add-on gives you 25% more coverage if your house is damaged due to a covered loss.
Pros
Multiple available discounts
Offers banking and other financial services
Cons
24/7 live customer service not available
Exclusively for qualifying service members and veterans
Find Cheap Home Insurance in Alabama
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Based on 3,806+ reviews
4.8/5
Cheapest home insurance in Alabama
Allstate offers the cheapest home insurance in Alabama. A policy from this insurance company costs around $142 per month.
Here are some top insurers offering cheap coverage for Alabama homeowners.
The below rates are estimated rates current as of: Monday, July 28 at 12:00 PM PDT.
The average cost of homeowners insurance in Alabama is $2,947 for $300,000 in dwelling coverage with a $1,000 deductible. This is higher than the national average of $2,529 per year for the same coverage and deductible amounts.
Weather patterns in Alabama are likely a factor in its high insurance costs. Tornadoes and severe thunderstorms are fairly common in this state, and hurricanes can threaten homes along the Gulf Coast. Besides weather, insurance companies consider your location; home’s size, age, and condition; credit history; desired coverage level; and more when determining your home insurance rates.[2]
Cost of homeowners insurance by dwelling coverage amount
The cost of your homeowners insurance will also vary depending on how much dwelling coverage you need. In general, your dwelling coverage limit should equal your home’s replacement cost. Higher coverage limits will result in higher property insurance premiums.
Here’s a look at dwelling coverage limits and how they tie into insurance prices. Rates shown below assume a policy with a $1,000 deductible.
The below rates are estimated rates current as of: Monday, July 28 at 12:00 PM PDT.
Your chosen deductible will also affect your home insurance rates. A deductible is the amount you pay following a claim before your insurance pays out. Homeowners insurance deductibles often range from $500–$2,000 or $2,500; generally, the higher your deductible, the lower your insurance rates.
Here’s how deductibles could factor into your average annual homeowners insurance premiums in Alabama for a policy with $300,000 in dwelling coverage.
Deductible Amount
Average Annual Premium
$500
$3,242
$1,000
$2,947
How to get cheap homeowners insurance in Alabama
You can’t control certain factors that affect your homeowners insurance rates, such as your home’s age, size, or location. But you can still take some steps to get the best rates on homeowners coverage in Alabama.[3]
Opt for a higher deductible. A higher deductible could result in lower insurance rates. Just keep in mind that you’ll also need to pay more out of pocket if you file a claim. But this risk could be worth it if a higher deductible saves you a considerable amount.
Add protective features. Security features such as alarm systems and deadbolt locks could earn you a homeowners insurance discount. Likewise, protective features like storm shutters or a reinforced roof could also help lower your rates, especially if you live in an area that’s prone to severe weather.
Ask about discounts. Many homeowners insurance companies offer special discounts for things like bundling your homeowners and auto insurance coverage, opting for paperless statements, installing protective features, and more. Ask prospective insurers about available discounts that could help you save money.
Shop around. Since average rates vary across insurance companies, comparison shopping is one of the best ways to ensure you get a decent price on your homeowners coverage. Get insurance quotes from a few insurers and then compare coverage and costs before deciding on the best options.
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How much homeowners insurance do you need in Alabama?
The amount of homeowners insurance you need depends upon various things, including the value of your home, your personal preferences, and whether you plan to take out a mortgage. If you take out a mortgage, your lender will require you to purchase a home insurance policy to protect its loan collateral: your home.
Before obtaining a policy, it’s important to understand exactly what a prospective home insurance policy will cover. This can help ensure you get the protection you need for your new home. For instance, some policies may not cover windstorm damage; this coverage is often an optional add-on, but you could need it in Alabama.
What are some of the biggest risks when owning a home in Alabama?
Different locations present different risks to homeowners. For example, blizzards are common in the Northeastern U.S., but you probably won’t get heavy snow in Alabama. But you could still experience extreme weather, like severe thunderstorms, tornadoes, or hurricanes.
Here’s some information about these common perils and whether a standard homeowners policy covers them:
Severe thunderstorms
Standard policies often cover rain and wind damage from severe thunderstorms, and they may also cover rare issues like fires due to lightning strikes. But it’s best to check your policy for any potential exclusions. Most standard policies won’t cover flood damage if flash floods happen due to heavy rain.
Tornadoes
Depending on your location, a tornado could affect your home. A standard home insurance policy may or may not cover property damage due to high winds. Some insurance companies offer this coverage with a standard policy, but others exclude it.
Hurricanes
As with thunderstorms and tornadoes, a standard policy will generally cover your home if heavy rain or wind damages it. But insurers typically exclude flood damage from a standard policy. You can purchase separate flood coverage through the U.S. National Flood Insurance Program or some private insurers.
Alabama homeowners insurance FAQs
If you’re shopping for home insurance coverage in Alabama, this additional information may help as you research your options.
How much is home insurance in Alabama?
Home insurance in Alabama costs an average of $2,947 per year for $300,000 in dwelling coverage with a $1,000 deductible, according to Insurify data. That price increases to $3,242 per year for the same coverage level and a $500 deductible.
Many factors affect the cost you’ll pay for home insurance, including your ZIP code, the age of your home, and coverage levels you choose.
Which company has the cheapest homeowners insurance in Alabama?
Allstate has the cheapest homeowners insurance in Alabama, with premiums of $142 per month.
Does Alabama require homeowners insurance?
No. Alabama law doesn’t require homeowners insurance, but if you have a mortgage on your home, your lender will require you to have coverage.
Having home insurance is important even if you’ve paid off your home. If something were to damage or destroy your home and you had to rebuild, you’d be on the hook financially without an insurance policy in place.
Why is Alabama home insurance so high?
Home insurance in Alabama could be higher than the national average because the state is prone to natural disasters such as hurricanes, tornadoes, and severe thunderstorms. Insurers increase rates to account for the additional risk of home insurance claims.
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.
Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.
Jess has been a contributor at Insurify since September 2022.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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