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Alabama Homeowners Insurance Quotes - Best and Cheapest (2022)

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Insurify Staff

By: Insurify Staff

Last Updated February 25, 2022

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Alabama Average Cost of Homeowners Insurance Rates (2022)

According to 2021 rates, the average cost of homeowners insurance in Alabama is $1921 per year and $160 per month. Alabama homeowners insurance rates are $523 per year more then the national average and about 37% more annually. When compared to the other US states that makes the cost of homeowners insurance in Alabama the 8th most expensive in the country, based on 2021 data.

For shoppers, the best way to find a homeowners insurance policy in Alabama is to evaluate all of the quotes from individual insurance providers and then decide on the policy that fits your requirements and budget level. Fortunately finding the right homeowners insurance coverage is easy with a tool like Insurify.

Insurify provides easy and fast home insurance quote comparisons for all kinds of homeowners nationwide. Insurify has helped thousands of customers receive accurate homeowners quotes for your property in Alabama in minutes.

Alabama Average Homeowners Insurance Rates
Average Cost Per Month$160
Average Annual Premium$1921
State Rank (Most Expensive)8th

Cheapest Insurance Companies for Homeowners in Alabama (2022)

For homeowners in Alabama, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Comparing the right insurance companies will allow you to get the best possible insurance rate for your home.

To simplify comparing companies, Insurify has analyzed rates from top insurance providers in Alabama. The following are the best insurance rates from carriers that offer homeowners insurance in Alabama.

Cheapest CompaniesQuotes
Allstate$923
Travelers$962
USAA$1,616
Farmers$1,618
Nationwide$1,407

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How to Get Affordable Home Insurance in Alabama

The experience of shopping for a home is stressful. For most, a mortgage is a decades-long commitment. It forces us to decide what kind of life we want—now and years into the future. That process can be exciting—as we think of all the hopeful things we want for ourselves and our families:

“Maybe we’ll put a swimming pool in the backyard.”

“Maybe we’ll build a treehouse in that old magnolia by the fence.”

It can also be terrifying—as we imagine everything that could go wrong along the way:

“What if a sinkhole opens up and swallows that expensive swimming pool?”

“What if that old magnolia tree snaps in a hurricane and falls through my neighbor’s roof?”

No matter how much time and energy you invest in research before buying a home, there is no escaping the many risks that come with such a large financial commitment.

The best tool we have for managing these risks is homeowners insurance. Though not required by law, home insurance can protect your property and personal belongings from natural disasters or theft. Different coverage levels are available for different property types, locations, and other factors.

Need protection against sinkholes? There’s a policy for that. Need to make sure you’re not liable if that tree crushes your neighbor’s roof? There’s one for that too. To help you navigate the insurance shopping experience, we’ve put together a comprehensive guide to Alabama home insurance. Read on to learn how you can find the best home insurance policy to protect your home and family.

Homeowners Insurance Quotes in Alabama by Company

Even the best homeowners insurance companies don’t consider your needs when deciding how much they’ll charge you. Their rates are defined, instead, by the cold, unyielding certainty of mathematics.

Unfortunately, math doesn’t look very kindly on Alabama. High crime rates and frequent, costly natural disasters mean that the state has some of the highest insurance premiums in the country. As of 2021, the average home insurance premium in Alabama cost $3,205 annually, while the median home value was only $141,300.

Those are some painful numbers but don’t despair. While it’s pointless to appeal to insurance companies for help, it is possible to help yourself—by using the numbers to your advantage. It’s true that insurance rates are higher in Alabama, in general, than in other parts of the country. However, there is also a significant variation in rates among providers.

The best way to find cheap home insurance is to solicit quotes from as many individual providers as possible and then select the cheapest option from the list. Online tools like Insurify make it easy to get personalized home insurance quotes from dozens of providers in just minutes.

Average Annual Homeowners Insurance Premium in Alabama by Company

Average prices for standard homeowners insurance for a 7-15 year old home, $200,000 in coverage

Allstate
$923
Travelers
$962
Nationwide
$1,407
USAA
$1,616
Farmers
$1,618

Home Insurance Rates in Alabama by City

Like property costs, home insurance varies in price from city to city. Pricing is determined on ZIP code-specific variables such as the volume of claims filed nearby, crime rates, property costs, and risk variables such as natural disaster frequency. Even your specific neighborhood may determine if you pay more or less on our annual premiums.

Buying and insuring a home comes with loads of unexpected costs and new living expenses. How can you be expected to pay all of these costs—vital as they are—and still provide for you and your family?

Homeowners insurance rates aren’t designed with savings in mind. That’s where Insurify comes in.

Rates in Alabama can be relatively high or low compared to the national average—it all depends on which town you live in, though, overall, Alabama has some of the most expensive real estate in the country. Here are the most and least expensive ZIP codes in Alabama to buy and insure a home. Average rates within these ZIP codes tend to increase relative to property cost. In wildfire- or earthquake-prone areas, rates are often higher.

CityAverage Annual Cost
Birmingham$978
Huntsville$1,304
Montgomery$1,124
Mobile$2,014
Tuscaloosa$1,613
Dothan$1,316
Auburn$1,129
Decatur$1,257

What Does Home Insurance Cover in Alabama?

We can only learn so much from the average cost of insurance at the state level. After all, Alabama is very diverse. The risk profile of an urban apartment in Birmingham or Montgomery will bear little resemblance to that of a beachfront condo in Gulf Shores, several hours south.

Likewise, the cost of homeowners insurance will be different based on the specific type of home insurance coverage you purchase, the coverage options you choose, whether you are bundling your home and auto insurance together, your credit score, and the location of the property being insured.

Insurance providers decide a property’s risk profile based on ZIP code–specific variables, like the insurance claims history for nearby homes, local crime rates, property values, and weather patterns. For this reason, premiums can vary by city and even neighborhood.

Home insurance rates in Alabama can be relatively high or low compared to the national average; it all depends on where you live. Here are the most and least expensive Alabama ZIP codes in which to insure a home.

There are a few basic types of home insurance. Specific terms of insurance policies may vary from state to state, but in general, the standard policy types are as follows.

  • The simplest and least comprehensive type of homeowners insurance.

    Provides coverage for a handful of potential problems including:

    • Natural disasters (storms, fires, wind lightning, volcanic eruption)
    • Explosions
    • Theft
    • Damage from vehicles
    • Civil commotion
  • Broad form homeowners insurance policies include all basic form coverage, plus:

    • Protection from falling objects
    • Damage from the weight of ice, snow, or sleet
    • Freezing of household systems including HVAC and pipes
    • Sudden and accidental damage to pipes and other household systems from artificially generated electrical current
    • Accidental discharge or overflow of water or steam
    • HO-2 policies typically cover both dwelling protection and personal property.
    • In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
    • The most common form of homeowners insurance is known as a “special form” policy.
    • While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
    • HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes.
    • Tenant’s form policies typically cover all the same dangers as HO-2 policies.
    • Tenant’s form policies typically cover all the same dangers as HO-2 policies.
    • These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house.
    • Some HO-4 policies may also include loss of use coverage for the tenants.
    • Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
    • The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
    • An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy).
    • HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property such as jewelry and artwork.
    • Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies.
    • They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building.
    • These policies also include personal property and liability coverage and may include loss of use coverage.
    • If you own a mobile home or manufactured home, you likely have an HO-7 policy.
    • Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
    • Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well.
    • HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
    • Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them.
    • HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes.
    • Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home to enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

For more detailed Alabama city level guides, check out these below.

Wind and Flood Insurance in Alabama

Alabama has more than 600 miles of coastline and is a frequent flyer on the Weather Channel’s hurricane broadcasts. Four of the 10 costliest hurricanes in US history have impacted the state, according to the Insurance Information Institute . Hurricane Katrina alone caused $160 billion in economic losses to states across the Gulf Coast.

It’s curious, then, that Alabama’s coastal population has grown 2.5 percent since 2010, even as the state’s population, as a whole, has remained stagnant. By 2015, some 784,657 people lived in coastal Alabama, and this year about 52,000 single-family homes are considered at risk from hurricane-related storm surge.

It’s important to recognize these risks because your standard homeowners insurance policy will not protect you the next time a hurricane hammers the Yellowhammer State. You read that right. Hurricane damage is not a covered loss under many policies. How, then, can you protect your home and family from these disasters?

Contrary to popular belief, “hurricane insurance” is not the answer. In fact, it doesn’t even exist. Instead, storm damages are covered under two discrete hazards: “windstorm” and “flood.” If you live on or near a coastline, neither of these will likely be included in your standard homeowners insurance policy.

You can often purchase supplementary windstorm coverage either from your existing insurance provider or through a separate, state-sponsored program. In Alabama, homeowners who can’t find insurance elsewhere—as is the case for many high-risk coastal properties—can turn to the Alabama Insurance Underwriting Association (also known as the “Beach Plan”).

You’ll have to purchase flood coverage separately—either through the federally managed National Flood Insurance Program (NFIP) or, less frequently, through a private insurer. It’s important to note that NFIP policies do not include coverage for additional living expenses. That means you will not be paid for the cost of temporary housing should flood damage render your home uninhabitable. Some private plans do include coverage for additional living expenses. Talk to your local agent to learn what options are available.

Sinkholes In Alabama

Although far less common than hurricanes, there is another natural disaster you’ll want to consider when shopping for home insurance in Alabama. Sinkholes are more common here than in almost any other state, according to the U.S. Geological Survey.

Sinkholes form when rainwater infiltrates soluble bedrock. Over time, the acids in this water can dissolve the rock, enlarging its natural joints and fissures and eventually creating underground caverns. Initially, the arched ceilings of these caverns are still strong enough to support the soil at the surface. However, as the caverns grow larger, the ceiling will shed material, forcing the arches closer to the surface. Eventually, these arches will give out, causing the soil to collapse and swallowing up whatever was on the surface—sometimes entire homes.

The likelihood of falling victim to such a disaster is low, even in Alabama. However, if you happen to be among the unlucky few whose home was built atop a sinkhole, the consequences can be catastrophic. If you’re not a gambling person, you have options.

There are two basic types of sinkhole insurance. Neither is truly comprehensive since this coverage is usually limited to very specific circumstances. However, having some coverage may be better than having none at all if you live in an at-risk area like Alabama.

  • Sinkhole Loss Coverage: The first option is an endorsement tacked onto your existing homeowners insurance policy. This coverage is generally only applicable to sinkholes caused by previous mining operations. However, some insurance providers may extend it to include natural sinkholes as well. Before you can qualify for sinkhole loss coverage, you’ll probably be required to obtain a geological survey of your property. The irony is that your insurance company will likely refuse to issue this coverage to you if you’re found to live in a high-risk area.

Catastrophic Ground Cover Collapse Coverage: The second option will protect your home from sinkhole damage as long as you can satisfy the following four requirements:

  • Abrupt collapse of the ground cover has occurred
  • The depression in the ground is clearly visible to the naked eye
  • The insured structure has suffered structural damage (including damage to the foundation)
  • The insured structure has been condemned by an appropriate government agency.

The last point is critical. Basically, to qualify for coverage, your home must be completely destroyed. If a sinkhole causes less dramatic damage (i.e. a cracked foundation), your coverage will be useless. Florida and Tennessee both require insurance companies to include this type of coverage. Unfortunately, Alabama residents don’t enjoy similar protections and might have a harder time finding affordable coverage.

The best way to shop for affordable sinkhole insurance is to use an online quote comparison tool like Insurify .

Mobile Home Insurance In Alabama

Alabama has the sixth-highest number of mobile homes per capita of any state. In fact, there were nearly 224,000 occupied mobile homes in the state in 2018, according to the U.S. Census Bureau.

Unfortunately, given their vulnerability to extreme weather events (e.g., a hurricane), mobile homes are considered a higher risk by home insurance companies and can be difficult to insure. A standard home insurance policy will not cover a mobile home. Instead, you’ll need to purchase a specialized mobile home insurance policy. Not all providers offer these policies, and those that do sometimes do so only through affiliates.

Whichever company you choose, remember that a standard policy usually will cover your home only while it is stationary. If you want to be protected while your home is moving, you’ll need to buy additional coverage.

Special Home Insurance Situations in Alabama

Unique elements of your home may affect homeowners insurance prices. Check out these quotes for some special situations that may impact your home insurance in Alabama.

Cheapest Home Insurance for Houses Near Fire Department in Alabama

If your home is within a certain distance from a fire department or fire hydrant your rates may decrease. The same applies for the opposite. If your home is far from fire safety, you may pay more for homeowners insurance.

Insurance CompanyAverage Annual Premium
Alfa$1,814
Allstate$1,066
Country$2,469
Encompass$2,066

Cheapest Home Insurance for Houses Less Than 20 Years Old in Alabama

The age of your home and its major systems may affect the policy rate you're quoted by insurance companies

Insurance CompanyAverage Annual Premium
Foremost$1,966
Metropolitan$3,984
State Farm$1,829
Travelers$2,850

Sweet home Alabama, where the rates are so fair

How to Find the Cheapest Home Insurance in Alabama

It’s possible to find cheap homeowners insurance rates even in a high-risk state like Alabama. It just takes a little research and the right tools. Use Insurify to compare home insurance premiums, and you’ll be on your way to find the cheapest homeowners insurance to protect your home and family.

Alabama Homeowners Insurance FAQ

  • Alabama has some of the highest average home insurance premiums in the nation—the 12th highest of any state, according to the Insurance Information Institute . Why is this? The short answer is we don’t know. Insurance providers rely on a complicated range of factors when setting premiums.

    That said, we do have some theories. First, Alabama has one of the highest property crime rates in the country. The number of burglaries in an area correlates strongly with insurance premiums, so it’s a solid bet that this is a factor influencing Alabama’s premiums. Second, the state’s climate leaves it vulnerable to a wide range of severe weather events. Four of the 10 most destructive hurricanes in U.S. history impacted the state. This elevates risk for insurers, who pass that cost on to consumers.

    While none of this is great news, it’s also important to note that insurance premiums can vary widely within a state. Your rates will be lower if you live further from the ocean or in a safer neighborhood. Rates will also vary widely from one insurer to the next. To find the cheapest homeowners insurance, you should compare quotes from as many companies as possible before you purchase a policy. Online tools like Insurify make it easy to compare quotes.

  • The short answer is no. “Hurricane insurance” usually refers to two discrete types of coverage—windstorm insurance and flood insurance—that must be purchased separately. If you live in a coastal area that is at risk of frequent hurricanes, your standard homeowners policy is not likely to include windstorm coverage, and no homeowners policy, regardless of location, will cover flood damage.

  • Sinkholes are more common in Alabama than in most other states, though they’re still quite rare. There is no reliable way to predict when and where a sinkhole might form. However, there are certain warning signs. Structural cracks in walls or floors, muddy or cloudy well water, doors and windows that no longer close properly, and slumping or falling trees and fence posts are all indications that a sinkhole could be forming on your property. If you think your home might be in danger, you should evacuate the building immediately and contact your insurance provider or a qualified inspector to assess the damage.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Insurify Staff
Insurify Staff

Content Specialist at Insurify

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