Alabama Homeowners Insurance

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

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How to get cheap homeowners insurance in Alabama


Home insurance is an optional but important insurance coverage. It keeps your investment insured in the event your house suffers damage from a common incident. A homeowners policy protects your dwelling, attached buildings, and personal property against a number of circumstances, such as wind damage, fire, theft, vandalism, and more.

Unlike auto insurance, home insurance is not governed by state legislation. Even so, serious differences emerge in home insurance rates from state to state. Home insurance prices in a given state diverge based on the value of — and total number of — home policy claims submitted in the state, and depend on the value of the dwelling and belongings being insured.

The best way to find a cheap homeowners insurance policy in Alabama is to compare rates from multiple insurance companies. Learn homeowners insurance costs in Alabama via the below data. Your rates may vary, depending on your coverage details.


Alabama home insurance:
  1. Rates by company
  2. Costs by city
  3. How to bundle home and auto insurance
  4. FAQs

Home insurance rates in Alabama by insurance company

Homeowners insurance rates in Alabama will vary depending on the insurance company you select. Farmers offers the cheapest home insurance policies in Alabama — only $604 per year. This compares favorably to Alabama's average price of $2,328, offering a $1,723 price break on average policy costs statewide.

Start looking for affordable homeowners coverage by reviewing the best Alabama carriers, listed below.


CHEAPEST HOME INSURANCE COMPANIES IN ALABAMA
CompanyAverage Annual Rate in Alabama
Farmers$604.34
Allstate$1,207.41
Cincinnati Insurance$1,317.59
MetLife$1,604.74
USAA$2,065.47

Alabama home insurance costs: by city

Not all Alabama cities have the same homeowners insurance rates. Policy pricing may depend on city-specific variables, including the number of local claims filed, giving your ZIP code weight in deciding how much you pay.

The most affordable home insurance rates in Alabama are in Alabaster. A typical homeowners insurance term in Alabaster totals just $1,691 each year — $637 less than the state average. The below table shows the best places to live in Alabama if you’re looking for cheap homeowners insurance.


AFFORDABLE CITIES FOR HOME INSURANCE IN ALABAMA
CityAverage Annual Home Insurance Rate
Alabaster$1,690.61
Auburn$1,751.03
Hoover$1,770.84
Opelika$1,798.29
Montgomery$1,863.32

Save by bundling home and auto insurance in Alabama

If you want to save on insurance, consider buying your home and auto policies from the same insurance company. A home and car insurance bundle in Alabama can lead to substantial savings on car insurance. Purchasing bundled policies in Alabama leads to a yearly savings of $150.


HOME AND AUTO INSURANCE BUNDLING DISCOUNTS IN ALABAMA
Avg. Yearly Auto Insurance Rate (No Bundle)Avg. Annual Auto Insurance Rate (Bundle)Annual Bundle SavingsBundle Savings %
$1,370.00$1,220.00$150.0012%

A great way to save is to bundle your home and auto insurance policies. Compare rates today!


Looking for information on homeowners insurance in a particular city?

  1. Birmingham

Alabama homeowners 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)




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