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homeowners insurance in Alabama

The homeowners insurance Alabama residents face is surely not the cheapest. The average cost of homeowners insurance in Alabama costs $3,909 per year for full coverage with $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible. It is more than the national average home insurance cost, which costs an average of $3,144 per year. This means that Alabama homeowners pay over $750 more than the average U.S. homeowner.

In Alabama, you will likely need all the protection you can get. In its 2021 extreme weather tabulation, the National Weather Service’s Storm Prediction Center shows 541 total extreme weather events in Alabama, including 92 tornadoes, 89 hail storms, and 360 windstorms. With extreme weather ready to strike at any moment, home insurance coverage is critical to avoid catastrophic damage.

It is why you need the best Alabama homeowners insurance rates to protect your family, and we can help.

KEY TAKEAWAYS
  • For homeowners insurance, Alabama residents pay an average cost of $3,909 per year.
  • Farmers is the cheapest Alabama home insurance company at an average cost of $2,962 per year.
  • The cheapest city for Alabama car insurance is Birmingham, with an annual average premium of $2,725 per year, while Magnolia Springs has the most expensive Alabama home insurance at an average cost of $6,581 per year.
  • The average home and auto insurance bundle in Alabama costs $2,129 per year, saving an average of $487 off your policy.

5 Best homeowners insurance companies in Alabama

To find the best homeowners insurance in Alabama, we take a methodical approach, using an Insurance.com rate analysis for the most current rates available. We also conduct a consumer survey in order to rank 15 major carriers using different customer service metrics. This review is an editorial analysis independent of any affiliations or partnerships of any kind, paid or unpaid.

Instead, we look to the industry experts, such as J.D. Power for customer satisfaction and AM Best for financial stability. Coupled with available coverage and discounts, we are able to find the best homeowners insurance Alabama homeowners have to protect their families.

Travelers: Best for replacement coverage

The average cost of homeowners insurance in Alabama is $5,304 per year from Travelers. It certainly is not the cheapest premium for Alabama home insurance, but there are still plenty of ways to save on your premium and lower the total cost of your policy. New homebuyers will appreciate the homebuyer discount that applies when you purchased your home within the last year. If your new home is a green home, there is a discount of up to 5% that can apply to your policy. There are also protective device and multi-policy discounts when you bundle your auto, boat, or umbrella insurance.

Your Alabama home insurance from Travelers comes with the option for extra upgrades, like insurance for jewelry, water backup and sump pump overflow, and identity theft coverage up to $25,000. You can also add green home coverage to ensure that if you experience a covered loss, Travelers will use green materials to repair, replace, or rebuild your home.

USAA: Best for military members and family

You must be a member of USAA to purchase home insurance, with membership restricted to retired and active-duty military, and their family members. It is also very affordable, with an average annual rate of $2,862 for homeowners insurance in Alabama. It is also the top-rated company for customer service in J.D. Power’s 2021 U.S. Home Insurance Study with a score of 882/1000.

Unlike most other providers, USAA offers coverage for hail, tornadoes and windstorms in its policies. You can also choose insurance that is depreciation-free for your collectibles and valuables. For its active military members, USAA also covers military uniforms and equipment for active-duty military, in addition to extra discounts for on-base addresses. Other ways to lower your home insurance include claims-free and home security discounts, with extra savings when you bundle your home and auto insurance.

Best mobile tools: State Farm

State Farm has a wide array of protections for your home with well-rounded coverage. Home insurance is available for several different types of properties, like manufactured home insurance and ranch insurance. Also available for your policy is flood insurance through the National Flood Insurance Program (NFIP).

State Farm is well-known for its excellent mobile tools. It is easy to file a home insurance claim yourself using the mobile app, or you can contact your agent directly for personal assistance. Simply down the mobile app, which is available on both the App Store and Google Play, and you have instant access to your account. Through the app, you can make payments, manage your accounts, and contact roadside assistance. There are also virtual ID cards, so you don’t have to worry about carrying a physical card on you.

Best for new homebuyers: Liberty Mutual

Liberty Mutual has comprehensive home insurance coverage that includes wind, hail and hurricane insurance. There is also the option to add on other types of coverage, such as insurance for jewelry, personal property replacement cost coverage, and water backup and sump pump overflow coverage.

Best of all, Liberty Mutual makes it easy for new homeowners to save on home insurance. There is a special discount for newly-purchased homes, saving you precious dollars during an already-expensive time in your life. Even if you are not a new homebuyer, there are still plenty of ways to save. If your home was recently renovated or has a new roof, you could be eligible for additional home insurance discounts. Plus, if you bundle your home and auto insurance, you could receive extra savings on both policies.

Best for high-value homes: AIG

AIG is a powerhouse provider for both personal and commercial home insurance. Its personal home insurance is designed for homeowners that need extra coverage for high-value homes. For those with multiple homes, AIG insures private properties both within the U.S. and internationally. Coverage is generous, too, with policies including protection for your home’s landscaping, fragile items, and even any damages incurred by your pets.

If you experience a total loss, AIG can rebuild your home to match enhanced building quality, even if it exceeds your policy’s limits. You also have the option to choose a cash settlement in lieu of repair. If you choose to rebuild, AIG makes it easy with its exclusive Smart Build service that includes experienced risk managers to help with the process. There are also in-house collection and loss prevention specialists to help ensure that your most cherished items are protected by your home insurance policy.

Cheapest homeowners insurance companies in Alabama

The cheapest home insurance companies in Alabama differ slightly from the state’s best home insurance companies because the best isn’t always the cheapest. We found the cheapest Alabama home insurance companies based on a sample policy with $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible.

Cheapest Homeowners Insurance Companies in Alabama
CompanyAverage Annual Premium
Farmers$2,962
Travelers$5,304
Allstate$3,242
Safeco$3,390
Foremost Insurance Company$2,995

Average cost of homeowners insurance in Alabama

Alabama homeowners pay more than the average U.S. homeowner for their home insurance. While the national cost of home insurance averages $3,144 per year, the average Alabama homeowners insurance policy costs $3,909 per year. It is a difference of $765, once again demonstrating the need to shop and compare your options, especially for home insurance in Alabama.

Alabama insurance rates by zip code and city

One factor that can impact how much you pay for home insurance is where you live. Our analysis also considers how home insurance differs across the state of Alabama, with home insurance calculated both by city and zip code.

Average Homeowners Insurance Rates in Alabama
CityZip codeAverage Annual Premium Full CoverageCheapest Average Annual Premium
Lowest rateBirmingham35242$2,725$959
Highest rateMagnolia Springs36555$6,581$1,296

Alabama homeowners insurance calculator

Where you live has an enormous impact on how much you pay for home insurance. To estimate the cost of home insurance for your Alabama address, simply use our homeowners insurance calculator for sample rates.

HOME INSURANCE CALCULATOR

Average home insurance rates in CALIFORNIA

$200,000
$1,000
$100,000
94404 - Foster City
Dwelling $200,000, Deductible $1,000 and Liability $100,000.

AVERAGE RATE: $669

HIGHEST RATE: $1,029 LOWEST RATE: $443
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Most & least expensive zip codes for homeowners insurance in California

Most Expensive

Zip CodeCityHighest Rate
92561Mountain Center$1,031
90210Beverly Hills$1,029
90069Los Angeles$1,020
90046Los Angeles$1,011

Least Expensive

Zip CodeCityLowest Rate
93445Oceano$606
93117Goleta$607
93111Goleta$610
93433Grover Beach$615

Homeowners insurance rates in Alabama by company

The cost of homeowners insurance in Alabama can vary significantly, depending on the insurance provider that you choose. These are the average rates for the best Alabama home insurance companies based on a $300,000 dwelling, $300,000 liability and $1,000 deductible policy.

Average Homeowners Insurance Rates by Company
CompanyAverage Annual Premium
Cincinnati Insurance Company$2,962
Allstate$3,242
Travelers$5,304
USAA$2,862
Farmers$2,962

Homeowners insurance rates in Alabama by coverage level

The amount of coverage you buy for your home insurance can also determine how much you pay for home insurance. In our price comparison, we consider the cost of Alabama home insurance with different coverage levels.

Average Homeowners Insurance Rates by Coverage Level
Dwelling CoverageLiability CoverageDeductibleAverage Annual Premium: Full CoverageAverage Annual Premium: Minimum Coverage
$200,000$100,00$1,000$2,912$684
$200,000$300,000$1,000$2,934$696
$300,000$100,000$1,000$3,882$878
$300,000$300,000$1,000$3,909$891
$400,000$100,000$1,000$4,940$1,109

Homeowners insurance discounts in Alabama

Home-auto bundle discounts in Alabama

A great way to save money on your home insurance in Alabama is to bundle home and auto insurance from the same insurance company. By using the same insurance provider, you not only simplify policy management but can also receive major savings on your insurance policies.

Homeowners Insurance Discounts in Alabama
Type of bundleBase Annual PremiumAverage Annual PremiumAverage Dollar DifferenceAverage Percent Difference
Home & auto$2,616$2,129-$487-18%

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.

Sources:

Annual Severe Weather Report Summary 2021

J.D. Power’s 2021 U.S. Home Insurance Study

Helpful Home Insurance Articles & Guides