Best Homeowners Insurance Companies in Alabama (2025)
Farmers and Allstate offer good value for Alabama homeowners.
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Written byLindsay VanSomeren
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8 years in insurance and personal finance writing
Former data scientist for U.S. Geological Survey
Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.
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Edited byAshley Cox
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7+ years in content creation and management
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.
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Data reviewed byChase Gardner
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Data expert on auto trends and driver behavior
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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Table of contents
Alabama is one of the most storm-prone areas in the world, making it especially important to protect your home with good insurance. While many state-sponsored grants can help, such as the Strengthen Alabama Homes program, finding affordable coverage can be a challenge.
Homeowners in Alabama pay an average of $2,988 per year for a $300,000 dwelling coverage policy, according to Insurify data — higher than the national average of $2,532 per year.
Here’s what you should know about finding homeowners insurance in Alabama for the right price.
Quick Facts
Alabama homeowners pay a yearly average of $3,210 for a $300,000 dwelling coverage policy with a $500 deductible.
Allstate is the cheapest home insurance company in Alabama, with average monthly premiums of $142 for $300,000 in dwelling coverage.
Many Alabama insurers require a separate windstorm or hurricane deductible for claims stemming from each specific storm.
Best home insurance companies in Alabama
No single insurer will be the best home insurance company for everyone. But a few companies in Alabama stand out for providing better coverage in different situations.
Farmers: Best for property damage coverage
property damage coverage
Farmers
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. | 8.4/10 |
|---|---|
| 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. | $166/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. | $279/mo |
Some insurers offer one-size-fits-all policies that don’t take into account the unique conditions in a given area. But with Farmers, you can easily level up your coverage by purchasing flood insurance directly with your policy. Farmers also provides useful options, like the ability to get a FORTIFIED Roof after a covered event damages your roof. That can help you save in the future.
Pros
Low rates in Alabama
Local agents in 55 Alabama cities
Offers lots of additional coverages
Cons
Poor J.D. Power customer satisfaction rating
Available in only 42 states
Below-average J.D. Power claims satisfaction rating
USAA: Best for military members and veterans
USAACompare 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. | 8/10 |
|---|---|
| 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. | $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 nearly 417,000 active-duty personnel, National Guard members, and veterans who may be eligible for a USAA policy. USAA offers many insurance perks for homeowners. All policies come standard with replacement cost coverage, which usually costs extra. But some Alabama homeowners may need to buy a separate windstorm policy.
Pros
Also a full-service bank
Very low number of complaints with the National Association of Insurance Commissioners (NAIC)
Highest J.D. Power customer satisfaction rating
Cons
No 24/7 live customer service
Not open to civilians without military connections
May not cover wind or hail damage without a separate policy
State Farm: Best for financial stability
State FarmCompare 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. | 8.2/10 |
|---|---|
| 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. | $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 |
Although State Farm doesn’t get the best marks when it comes to processing claims, it does have a high AM Best rating. This means it has strong financial strength and is able to pay out on claims, which is important for Alabama homeowners when big storms roll in.
Pros
Lots of local agents throughout Alabama
A++ (Superior) financial strength rating from AM Best
High J.D. Power customer satisfaction rating
Cons
More expensive premiums
Not as many discounts as some insurers
Below-average J.D. Power claims satisfaction rating
Allstate: Best for affordable coverage
AllstateCompare 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. | 8.2/10 |
|---|---|
| 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. | $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 covers the basics for Alabama homeowners, and it has some of the lowest rates in the state. While Allstate offers replacement cost coverage, it doesn’t offer an endorsement for guaranteed or extended replacement cost coverage. Experts recommend this coverage in high-risk areas, which can help with price spikes after major storms.
Pros
Some of the lowest rates in Alabama
Dozens of agents throughout Alabama
A+ (Superior) financial strength rating from AM Best
Cons
Below-average J.D. Power claims satisfaction rating
Below-average J.D. Power customer satisfaction rating
Doesn’t offer extended replacement cost coverage
Foremost: Best for mobile home owners
mobile home owners
Foremost
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 |
Mobile homes are common in Alabama, but they’re more vulnerable to storm damage than other types of homes. Many companies won’t insure them at all. Foremost was the first insurer to offer mobile home insurance, and it’s still underwriting policies today. It offers a cheaper named-peril policy, but it doesn’t include as much coverage as an open-peril policy.
Pros
Low NAIC customer complaint volume
Offers policies for mobile homes
Can choose between named peril and open-peril coverage
Cons
Glitchy mobile app
Below-average J.D. Power customer satisfaction rating
Online home insurance quotes take 2–3 days
Our editorial team analyzed dozens of regional and national home insurance companies that sell policies in Alabama to assess which offer the best rates, coverage options, customer service, and savings to homeowners. We prioritized competitive rates, 24/7 customer service, homeownership discounts or bundling options, and specialty or supplemental coverages.
Cheapest home insurance in Alabama
Allstate is the cheapest home insurance company in Alabama. It charges $142 per month, on average, according to Insurify data.
Check out some other cheap Alabama insurers in the table below.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
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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Insurance Company  | Average Annual Premium: With $300,000 in Dwelling Coverage |
|---|---|
| Allstate | $1,704 |
| Farmers | $1,992 |
| Foremost | $2,832 |
| Travelers | $2,856 |
| USAA | $3,048 |
| Nationwide | $3,060 |
| Auto-Owners | $3,120 |
| State Farm | $3,204 |
| Encompass | $3,312 |
| COUNTRY Financial | $3,744 |
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How much does homeowners insurance cost in Alabama?
On average, policyholders pay $249 per month for a $300,000 dwelling coverage policy, according to Insurify data. That’s higher than the national average of $211 per month for a comparable policy.
Home insurance rates tend to be higher in Alabama because of its severe weather risks — storms often pummel homes in the state, especially near the coast. All those storms mean filing more home insurance claims, and that can also affect your rates.
Cheapest home insurance companies in Alabama by dwelling coverage
Dwelling coverage protects your home and any attached structures if a covered peril damages or destroys them. The higher your home’s replacement cost, the more you’ll pay to insure it. The table below shows average annual home insurance costs in Alabama for different dwelling coverage amounts.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
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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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,404 |
| Farmers | $1,464 |
| Foremost | $1,824 |
| Travelers | $2,076 |
| USAA | $2,244 |
| Nationwide | $2,328 |
| Auto-Owners | $2,388 |
| State Farm | $2,484 |
| Encompass | $2,616 |
| COUNTRY Financial | $2,868 |
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
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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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,704 |
| Farmers | $1,992 |
| Foremost | $2,832 |
| Travelers | $2,856 |
| USAA | $3,048 |
| Nationwide | $3,060 |
| Auto-Owners | $3,120 |
| State Farm | $3,204 |
| Encompass | $3,312 |
| COUNTRY Financial | $3,744 |
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
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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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $2,604 |
| Farmers | $3,348 |
| State Farm | $4,464 |
| USAA | $4,476 |
| Nationwide | $4,536 |
| Travelers | $4,572 |
| Auto-Owners | $4,704 |
| Foremost | $4,860 |
| Encompass | $4,908 |
| COUNTRY Financial | $5,580 |
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
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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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $3,780 |
| Farmers | $5,004 |
| State Farm | $5,856 |
| USAA | $6,120 |
| Nationwide | $6,492 |
| Auto-Owners | $6,504 |
| Encompass | $6,624 |
| Travelers | $6,804 |
| Foremost | $7,092 |
| COUNTRY Financial | $7,920 |
Alabama homeowners insurance cost by city
The average cost of home insurance is fairly consistent across the major cities in Alabama, with one exception: Mobile. Surrounded by wetland swamps and highly exposed to the coast, Mobile ranks among the most storm-prone areas in the country.
The table below shows the average cost of home insurance in several cities in Alabama.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
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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City | Average Annual Premium: With $300,000 in Dwelling Coverage |
|---|---|
| Montgomery | $2,496 |
| Huntsville | $2,520 |
| Birmingham | $2,628 |
| Mobile | $4,620 |
What homeowners should know about insurance in Alabama
Homes in coastal states, like Alabama, are especially vulnerable to windstorm damage.[1] To help homeowners, the state offers a tax deduction for residents who set up a “catastrophe savings account” to help rebuild their home and personal property after natural disasters.[2] The following examples are some of the most common risks Alabama homeowners face.
Hurricanes
Alabama doesn’t get quite as many hurricanes as neighboring states.[3] But hurricane losses in the state may increase by as much as 132% over the next 10 years, one recent study predicts.
Home insurance companies often set separate deductibles and coverage rules for named storms like hurricanes. You can lower these costs by getting a FORTIFIED home certification, which can unlock home insurance discounts under Alabama state law. Homeowners in certain counties are even eligible for grants to help cover the cost of these home upgrades.[4]
Tornado damage
Being in the heart of Tornado Alley, where the most dangerous tornadoes in the world regularly roll through, Alabama residents are well aware of what these storms can do to homes.
As with hurricanes, your home insurance policy will cover damage from tornadoes, although some companies charge a separate wind deductible for each storm. Check your policy exclusions for more details.
Flood damage
While storms can affect Alabama residents anywhere in the state, widespread flooding danger is a bit more limited to the coastal counties. Keep in mind, though, that one-third of flood damage claims come from outside of high-risk areas.[5]
Standard home insurance policies don’t cover flood damage. You can check your home’s flood risk on FEMA’s flood map. If you live in a high-risk flood zone, your lender may require you to buy separate flood coverage through the National Flood Insurance Program (NFIP). Even if your lender doesn’t require flood insurance, it’s a good idea to buy it separately to better protect your home.
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Learn More: Am I in a Flood Zone?
How much homeowners insurance do you need in Alabama?
No state laws require homeowners to carry insurance. But your mortgage lender will probably require you to have a policy as a way to protect its investment in your home.[6]
If you have a mortgage you’ll generally need to buy enough home insurance coverage for at least the value of your mortgage. You may also need to buy a flood insurance policy if your home is in a flood plain.
Financial experts recommend insuring your home for the full cost of rebuilding it. Consider opting for replacement cost coverage if you can, since that’ll cover the full cost of replacing or repairing your home. Actual cash value coverage is cheaper, but it doesn’t cover the full cost to rebuild your home after you file a claim.[7]
It’s important to understand exactly what your home insurance policy covers before purchasing, so you know you have all the coverages you need.
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How to contact the Alabama Department of Insurance
The Alabama Department of Insurance regulates the insurance industry in the state. It also helps support homeowners through programs like Strengthen Alabama Homes and resolves disputes with insurers.
Here’s how to get in touch with the organization:
Email address: [email protected]
Phone number: 1 (334) 241-4141 or 1 (800) 433-3966
Mailing address: P.O. Box 303351, Montgomery, AL 36130-3351
Alabama homeowners insurance FAQs
If you’re shopping for home insurance in Alabama, the additional information below can help as you research your coverage options.
The average cost of Alabama home insurance is $2,988 per year for a policy with $300,000 in dwelling coverage, according to Insurify data. If you purchase add-on coverage, such as flood insurance, your costs will increase.
Allstate offers the most affordable homeowners insurance rates in Alabama, Insurify data shows. It charges an average of $142 per month.
No. Alabama doesn’t require homeowners to carry insurance. But most mortgage lenders require borrowers to have homeowners insurance policies. If you own your home outright, you aren’t required to insure your home. But keeping an active insurance policy is still important to make sure your finances are protected.
The best way to lower the cost of homeowners insurance is to shop around for coverage. Bundling multiple policies with the same insurance company, like life insurance and car insurance, can also help you lower your home insurance rates.
The average premium for a policy with $200,000 in dwelling coverage in Alabama is $186 per month, according to Insurify data. Your cost might vary based on other factors, like your claims history, deductible amount, home’s age, and personal property coverage.
Yes. Your home’s age can affect how much you pay for coverage. The older your home, the higher the cost of your homeowners insurance.
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.
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Sources
- Alabama Department of Insurance. "An Insurance Preparedness Guide for Natural Disasters."
- Alabama Department of Revenue. "What is a catastrophe savings account?."
- Alabama Emergency Response Guide. "Hurricanes in Alabama."
- Alabama Department of Insurance. "Strengthen Alabama Homes."
- Federal Emergency Management Agency. "What’s Your Flood Risk?."
- Alabama Department of Insurance. "Consumer's Guide to Homeowners Insurance."
- Insurance Information Institute. "How much homeowners insurance do I need?."
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Lindsay VanSomeren
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
Lindsay has been a contributor at Insurify since October 2022.
7+ years in content creation and management
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.
Featured in
Data expert on auto trends and driver behavior
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.
Featured in