Auto-Owners is the best homeowners insurance company in Alabama, based on a 2023 analysis by Insurance.com, with an overall rating of 3.98. USAA is the second-best home insurance company in Alabama, with an overall rating of 3.95.
Allstate offers the cheapest home insurance in Alabama at all coverage levels.
With so many options out there, it is not easy to choose a homeowners insurance company in Alabama. You need a reliable company that will provide you with quality service at an affordable price. If this is what you're looking for, then keep on reading this guide.
Key takeaways
- The average cost of homeowners insurance in Alabama is $3,066 a year or $255 a month.
- The cheapest homeowners insurance company in Alabama is Allstate with an average home insurance rate of $1,323 a year.
- Auto-Owners ranks as the best homeowners insurance in Alabama for 2023.
Average home insurance cost in Alabama
The average cost of homeowners insurance in Alabama is $1,799 a year or $150 a month. This is based on coverage of:
- $300,000 dwelling
- $300,000 liability
- $1,000 deductible.
However, the average annual premium varies by the insurance company, your ZIP code, coverage type, and your home's age, among other factors. It’s a good idea to compare price quotes from different Alabama homeowners insurance companies to get the best deal.
Best home insurance companies in Alabama
The best home insurance company in Alabama for 2023 is Auto-Owners, followed by USAA and Allstate.
Below is a full list of the top Alabama insurance companies based on price, NAIC complaints, and AM Best financial ratings. The total Insurance.com score is calculated out of five using these factors.
| Insurance company | AM Best | Average annual rate | NAIC Complaint ratio | Insurance.com score |
|---|---|---|---|---|
| Auto-Owners | A++ | $2,910 | 0.19 | 3.98 |
| USAA | A++ | $2,752 | 0.41 | 3.95 |
| Allstate | A+ | $1,323 | 2.04 | 3.8 |
| Farmers | A | $2,642 | 0.33 | 3.76 |
| Alfa Corporation | A++ | $3,525 | 0.01 | 3.71 |
| State Farm | A++ | $3,086 | 1.07 | 3.42 |
| Country Financial | A+ | $3,709 | 0.14 | 3.38 |
| Nationwide | A+ | $3,545 | 0.75 | 3.16 |
*USAA only provides coverage to military members, veterans, and their families.
Cheapest home insurance companies in Alabama
Below are Alabama home insurance rates by company for six different levels of dwelling coverage, each with $300,000 in liability and a $1,000 deductible. Based on our rate analysis, you’ll see Allstate has the most affordable rates in every category by a wide margin.
| Company | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 |
|---|---|---|---|---|---|
| Allstate | $1,144 | $1,323 | $1,643 | $2,011 | $2,369 |
| Famers | $1,859 | $2,642 | $3,454 | $4,317 | $5,009 |
| USAA | $2,063 | $2,752 | $3,346 | $3,908 | $4,433 |
| Auto-Owners | $2,351 | $2,910 | $3,537 | $4,159 | $4,702 |
| State Farm | $2,433 | $3,086 | $3,699 | $4,338 | $5,000 |
| Alfa Corporation | $2,585 | $3,525 | $4,445 | $5,347 | $6,147 |
| Nationwide | $2,630 | $3,545 | $4,448 | $5,156 | $6,027 |
| Country Financial | $2,916 | $3,709 | $4,063 | $4,809 | $5,555 |
Alabama home insurance rates by ZIP code
Home insurance rates can vary widely depending on where the home is located. We compared home insurance rates by ZIP code in Alabama to see which areas are the most and least expensive.
The most expensive ZIP codes in Alabama for home insurance
Alabama homeowners insurance rates are the most expensive for ZIP code 36550 with an average annual cost of $3,583.
The most expensive ZIP codes in Alabama are:
| ZIP code | Average annual rates |
|---|---|
| 36550 | $3,583 |
| 36511 | $3,538 |
| 36574 | $3,529 |
| 36559 | $3,493 |
| 36617 | $3,491 |
| 36568 | $3,490 |
The least expensive ZIP codes in Alabama for home insurance
The cheapest ZIP codes for home insurance in Alabama are:
| ZIP code | Average annual rates |
|---|---|
| 36849 | $2,383 |
| 36832 | $2,389 |
| 36830 | $2,397 |
| 35114 | $2,406 |
| 36117 | $2,409 |
| 35043 | $2,412 |
Frequently asked questions about Alabama homeowners insurance
How much is home insurance in Alabama?
The average cost of Alabama home insurance is $3,909 per year for full coverage and $891 for minimum coverage. Compared to the national average cost of home insurance of $3,144 per year, Alabama homeowners pay over $765 more than the average U.S. homeowners insurance policy.
What company has the cheapest Alabama home insurance?
The cheapest home insurance Alabama homeowners can buy is from Farmers at an average cost of $2,962 per year.
What are the best homeowners insurance companies in Alabama?
Based on our Insurance.com analysis, the best home insurance companies include Travelers, USAA, State Farm, Liberty Mutual, and AIG. However, the best Alabama home insurance company for you may be different based on your needs, so be sure to always shop and compare multiple quotes.
