Homeowners Insurance in Alabama

Shopping for homeowners insurance doesn’t need to be complicated. Compare Alabama rates by city and carrier below.

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How to find cheap insurance for your home in Alabama


Homeowners insurance is an optional — but important — product that works to keep your belongings safe in the event your house or property suffers damage from common incidents. A homeowners policy protects your home and your items from a number of circumstances, such as wind damage, fire, theft, vandalism, and more.

Unlike car insurance policies, home insurance isn't priced based on state laws. Even so, major gaps exist in homeowners insurance costs from state to state. Policy rates in states vary based on the value and number of homeowners policy claims filed in that state, and also on the value of the belongings and dwelling you're insuring.

The best way to find affordable homeowners insurance in Alabama is to compare rates and consider policies from multiple companies. Find out home insurance rates in Alabama via the below data. Individual rates may vary depending on coverage options and the value of the dwelling being insured.


Alabama home insurance:
  1. Homeowners rates by company
  2. Rates by city
  3. Rates by coverage level
  4. Rates by deductible level
  5. Bundling
  6. FAQs

Homeowners insurance prices in Alabama by insurance company

Homeowners insurance rates in Alabama can vary based on the insurer you choose. Farmers offers the cheapest homeowners insurance in Alabama, at only $604 per year. This compares favorably to the state average cost of $1,705, offering a $1,101 price cut on average statewide home insurance costs.

Get a head start on looking for cheap homeowners insurance by reviewing the cheapest Alabama companies, listed below.


THE MOST AFFORDABLE HOMEOWNERS INSURANCE COMPANIES IN ALABAMA
CompanyAverage 12-Month Rate in Alabama
Farmers$604
Allstate$1,207
Cincinnati Insurance$1,318
MetLife$1,605
USAA$2,065

Alabama home insurance prices by city

Not every city in Alabama has equal home insurance costs. Policy pricing may depend on city-specific variables like the number of claims filed in the immediate area, meaning your specific ZIP code impact how much you pay.

The best home insurance in Alabama is found in Helena. The average homeowners insurance policy in Helena runs only $1,396 per year — $309 less than the average Alabama rate. Reference the below table to see the cheapest cities in Alabama for home insurance.


CHEAPEST HOME INSURANCE CITIES IN ALABAMA
CityAverage 12-Month Home Insurance Rate
Helena$1,396
Alabaster$1,421
Chelsea$1,423
Maylene$1,453
Montevallo$1,475

Average homeowners insurance prices in Alabama by coverage limit

How much you spend on home insurance coverage is greatly affected by the level of coverage you choose. Homeowners in Alabama who carry $100,000 of dwelling coverage pay an average of $1,082 per year, while those with dwelling coverage of $400,000 pay around $2,787 per year.


HOMEOWNERS INSURANCE RATES IN ALABAMA — COMMON COVERAGE AMOUNTS
Coverage LevelAverage Annual Cost
$100,000 Dwelling$1,082
$200,000 Dwelling$1,705
$250,000 Dwelling$1,962
$400,000 Dwelling$2,787

Home insurance deductibles in Alabama

Homeowners face a number of choices when buying a policy, including the amount of their deductible. A deductible is the amount for which a homeowner is responsible before the insurer will cover a claim. Choosing your deductible can have a major impact on how much you pay for insurance.

A good rule of thumb is: the lower your deductible, the higher your premium. This means that those seeking lower insurance costs will want to seriously consider a higher homeowners deductible. Remember that your deductible should only be set as high as you can reasonably afford in the event of a covered loss.

The table below reveals the average rates associated with deductibles offered by most home insurers.


HOME INSURANCE PREMIUMS BY DEDUCTIBLE TIER IN ALABAMA
Deductible LevelAverage Annual Homeowners Insurance Rate
$500$2,104
$1,000$1,962
$1,500$1,889
$2,000$1,769
$5,000$1,537

Home and auto insurance bundles in Alabama

If you want to save on home insurance, consider purchasing both your car and home insurance policies from one company. Bundling auto and home insurance in Alabama can save you a substantial sum each month on car insurance. Bundling policies in Alabama leads to average annual savings of $150.


HOME AND AUTO INSURANCE BUNDLING DISCOUNTS IN ALABAMA
Avg. Yearly Auto Insurance Rate (No Bundle)Avg. Yearly Auto Insurance Rate (Bundle)Annual Bundle Savings% Savings with Bundle
$1,370$1,220$15012%

One of the best ways to save on auto insurance is to bundle your policies. Find a policy today!


Looking for insights on homeowners insurance in a specific city?

  1. Birmingham

Alabama home insurance FAQs


Does GEICO offer homeowners insurance in Alabama?

Yes - GEICO offers homeowners insurance in Alabama.

Does homeowners insurance cover malicious prosecution in Alabama?

A standard policy would not cover malicious prosecution in Alabama. However, you can add this coverage via an personal injury endorsement.


Tornado insurance in Alabama

A tornado can hit with precious little warning. There isn't much that you can do to get ready and the effects can be catastrophic. It's vital to insure your home against tornado damage in Alabama, which suffers an average of 47 tornadoes each year.*

Tornado damage comes primarily in the form of wind, so make sure your homeowners policy has windstorm protection, which comes standard with most home insurance policies.

Wind protection covers the exterior and overall structure of the building. Depending on your policy type, you may find that interior damage is only covered when it's caused by exterior damage, like a broken window. Detached structures are also covered, typically about 10% of the home’s insured amount. Bear in mind that certain damages brought about by the storm may not be covered. For example, if the storm that produced the tornado also causes flooding that damages your home, those damages won't be covered unless you have sought out flood coverage.

*Source: NOAA's National Weather Service (https://www.spc.noaa.gov/gis/svrgis/)


Homeowners insurance and hurricanes in Alabama

Since hurricanes can cause calamitous destruction and wipe out properties altogether, insurers are afraid to assume the risks posed by hurricanes. If you own a house in Alabama, there could be increased risk of suffering hurricane damage. In fact, 6, 379 single-family homes are highly vulnerable to hurricane damage in Alabama.*

If you live in a coastal area, it's of utmost importance to check and understand your homeowners policy since a basic policy won't be sufficient to cover damage by hurricanes — you would need to bolster your policy with flood and windstorm insurance, both of which would be applicable to cover repairs or replacements. In some states, your insurance company may make it mandatory to have a separate hurricane deductible if you reside in a region that's especially susceptible.

*Source: Insurance Information Institute (https://www.iii.org/fact-statistic/facts-statistics-hurricanes)

HURRICANE DEDUCTIBLE RATES IN ALABAMA
CompanyAverage Annual Rate w/ Hurricane Deductible
Cincinnati Insurance$1,231
Centauri Specialty$1,506
AAA$1,564
Country$1,776
USAA$1,781

Compare homeowners insurance rates today!

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Ross Martin LinkedIn

As a licensed insurance agent, Ross is responsible for researching and writing about all matters related to auto and home insurance. He has a background in writing and education, as well as a master's degree from Royal Holloway, University of London. He has been quoted by CNET, iDriveSafely.com, and Kin Insurance.