Cheapest Alabama Homeowners Insurance Quotes (2024)

Foremost offers some of the cheapest homeowners insurance policies in Alabama, with annual premiums starting at $2,079.

Jess Ullrich
Written byJess Ullrich
Jess Ullrich
Jess UllrichInsurance Writer
  • 10+ years writing insurance and personal finance topics

  • Former associate finance editor for Investopedia

Jess is a subject matter expert in insurance, banking, and other personal finance topics. Her byline has appeared in numerous top web media, including Investopedia.

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Ashley Cox
Edited byAshley Cox
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Ashley CoxSenior Managing Editor
  • 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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Andrew Huang
Data reviewed byAndrew Huang
Headshot of Andrew Huang, Directory of Analytics at Insurify
Andrew HuangVP, Marketing & Analytics
  • Chartered financial analyst

  • 12+ years in data analysis and marketing

Andrew applies his vast knowledge of analytics and insurance industry trends to help inform Insurify’s content and marketing efforts.

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Updated May 20, 2024

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Homeowners in Alabama pay an average of $3,939 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 $2,377 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 CompanyIQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
Average Annual PremiumBest For
Foremost2.6$2,079Cheapest rates
State Farm4.1$2,565Protective feature discounts
Allstate4.1$2,704Optional coverages
USAA4.0$3,346Military members and families
  • Our editorial team spent 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. Criteria are weighted 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 5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: We use 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 20,000 customer reviews across 155 car insurance companies. We also considered 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 United States, 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 identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.

Cheapest rates: Foremost

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.5
$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.
$207/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.
$348/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

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-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.5
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
$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.
$208/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.
$284/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

Best insurer for optional coverages: Allstate

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-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.2
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
$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.
$150/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.
$225/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

Best insurer for veterans: USAA

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-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.5
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
$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.
$226/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.
$327/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

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Cheapest home insurance in Alabama

Foremost offers the cheapest home insurance in Alabama. A policy from this insurance company costs around $173 per month. Metropolitan Epac offers the second most affordable coverage, at around $176 per month.

Here are some top insurers offering cheap coverage for Alabama homeowners.

Insurance CompanyAverage Annual Premium
Foremost$2,079
Metropolitan Epac$2,115
State Farm$2,565
Allstate$2,704
Country$2,809
Cincinnati Insurance$3,088
Farmers$3,124
Encompass$3,315

Cost of homeowners insurance in Alabama

The average cost of homeowners insurance in Alabama is $3,939 for $300,000 in dwelling coverage with a $1,000 deductible. This is much higher than the national average of $2,377 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.

Coverage LimitAverage Annual Premium
$100,000$1,970
$200,000$3,008
$300,000$3,939
$400,000$5,064
$500,000$6,116

Cost of homeowners insurance by deductible

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 AmountAverage Annual Premium
$500$4,007
$1,000$3,939

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.

Learn More: Types of Homeowners Insurance Policies

Learn More: Types of Homeowners Insurance Policies

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:

  • illustration card https://a.storyblok.com/f/162273/150x150/52b2836106/weather-96x96-blue_032-rain.svg

    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.

  • illustration card https://a.storyblok.com/f/162273/150x150/d2251ba1fd/weather-96x96-blue_018-tornado.svg

    Tornadoes

    According to the National Weather Service, 70 tornadoes tore through Alabama in 2023.[4] 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.

  • illustration card https://a.storyblok.com/f/162273/x/68ed522f01/windstorm-and-hail.svg

    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 $3,939 per year for $300,000 in dwelling coverage with a $1,000 deductible, according to Insurify data. That price increases to $4,007 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?

    Foremost has the cheapest homeowners insurance in Alabama, with premiums of $2,079 per year, or $173 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.

Sources

  1. Alabama Department of Veterans Affairs. "How Many Veterans Live in Alabama?."
  2. National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
  3. Insurance Information Institute. "12 Ways to Lower Your Homeowners Insurance Costs."
  4. National Weather Service. "Alabama Tornadoes by Year."
Jess Ullrich
Jess UllrichInsurance Writer

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.

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 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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Andrew Huang
Data reviewed byAndrew HuangVP, Marketing & Analytics
Headshot of Andrew Huang, Directory of Analytics at Insurify
Andrew HuangVP, Marketing & Analytics
  • Chartered financial analyst

  • 12+ years in data analysis and marketing

Andrew applies his vast knowledge of analytics and insurance industry trends to help inform Insurify’s content and marketing efforts.

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