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 affordable homeowners insurance in Alabama


Home insurance is an optional — but important — product that works to keep your belongings safe in the event your home suffers damage from common incidents. A home insurance policy covers your dwelling, personal property, and other buildings in the event of a variety of misfortunes, including wind damage, fire, theft, vandalism, and others.

Unlike auto insurance, home insurance is not priced based on state-level legislation. Even so, major gaps exist in homeowners insurance costs from state to state. Homeowners insurance costs in a given state may differ based on the value of — and frequency of — home policy claims in that state, and depend on the value of the belongings and property you're covering.

The best way to find a cheap home insurance policy in Alabama is to compare rates and consider policies from as many insurers as possible. Learn more about home insurance rates in Alabama via the below data. Individual rates may vary depending on coverage options.


Homeowners insurance in Alabama:
  1. Rates by company
  2. Costs by city
  3. Rates by coverage amount
  4. Rates by deductible level
  5. Bundling discounts
  6. FAQs


Homeowners insurance prices in Alabama by insurer

Rates for homeowners insurance in Alabama vary depending on which insurance company you use. Farmers underwrites the most affordable home insurance in Alabama — just $604 yearly. This is less than the state average cost of $2,328, providing a $1,723 discount on the typical rates in the state.

Start searching for a home insurance policy by checking out the cheapest Alabama carriers, detailed below.


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


Alabama homeowners insurance costs: by city

Homeowners insurance rates in Alabama differ by city. Policies are often priced on local variables such as the number of homeowners claims filed nearby, meaning your ZIP code could have a major impact on how much you pay.

The cheapest home insurance in Alabama is found in Alabaster. An average home insurance policy in Alabaster costs $1,691 annually — $637 less than the state average. The below cities have the most affordable homeowners insurance in Alabama.


AFFORDABLE HOME INSURANCE BY CITY IN ALABAMA
CityAverage Annual Home Insurance Rate
Alabaster$1,691
Auburn$1,751
Hoover$1,771
Opelika$1,798
Montgomery$1,863


Average homeowners insurance prices in Alabama by coverage level

The amount of home coverage you select has an impact on your insurance rates. 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 TIERS
Coverage LevelAverage Annual Rate
$100,000 Dwelling$1,082
$200,000 Dwelling$1,705
$250,000 Dwelling$1,962
$400,000 Dwelling$2,787


Compare Homeowners Insurance Rates


Homeowners insurance deductibles in Alabama

Homeowners have a lot of decisions to make when deciding on a homeowners policy, including how high or low to set their deductible. A homeowners deductible is the amount you are responsible for paying toward a covered loss. The deductible level you choose can have a big impact on home insurance rates.

In general, having a low deductible means that your insurance rates will be higher. This means that those aiming for lower insurance costs will want to think about getting a higher homeowners deductible. Remember: your homeowners deductible should not be set at an amount that you would have difficulty paying in the event of a loss.

Below you'll find some typical deductibles offered by most home insurance companies along with corresponding average insurance premiums.


HOMEOWNERS INSURANCE RATES BY DEDUCTIBLE IN ALABAMA
Deductible LevelAverage Annual Home 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 your home and car insurance policies from the same company. A home and car insurance bundle in Alabama can lead to substantial savings on your auto insurance policy. In fact, bundling policies in Alabama leads to a yearly discount of $150.


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


You can save money on insurance by bundling your home and auto policies. Find a policy today!


Looking for information on homeowners insurance in a specific 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. The average cost of Alabama homeowners insurance with a 2% hurricane deductible is $2,022 per year. 

While “hurricane insurance” doesn’t exist as a standalone product, most homeowners insurance policies will typically cover perils associated with such storms. However, you may face a “hurricane” or “windstorm” deductible if you live in a hurricane-prone area. This is different than a standard deductible — and oftentimes more expensive — as it only comes into play when certain conditions are present. Be aware that flooding is never covered on a standard policy and needs to be added through — in most cases — the National Flood Insurance Program.

Below are some affordable choices for hurricane coverage in Alabama. Treat these rates as estimates and reach out to companies directly for rates specific to your property.

 

AFFORDABLE HOMEOWNERS HURRICANE COVERAGE IN ALABAMA
Insurance CompanyAverage Annual Hurricane Insurance Rate
Cincinnati$1,142
Centauri Specialty$1,520
AAA$1,567
USAA$1,687
Foremost$1,693

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


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 masters degree from Royal Holloway, University of London. He has been quoted by Kin Insurance, Safety.com, and autoinsuranceEZ.com.