Cheap Alabama Homeowners Insurance (from $37/mo)

Our review of Alabama home insurance will help you find the cheapest home insurance policy from many major insurance companies in the state.

Alabama home insurance: what you need to know

On average, buying an Alabama home insurance policy will cost you around $1,717 annually.

Are you preparing to own a home in Yellowhammer State? If you reside in Alabama, you risk having your house damaged by tornadoes and hurricanes. So, buying homeowners insurance in Alabama is the best move to safeguard your home and give you peace of mind.

Unlike auto insurance, state laws don't govern homeowners insurance. As a result, the cost will depend on the value of the items and structures covered by the policy and the full number and dollar amount of homeowners claims submitted in that state. Even so, Alabama is one of the states with the largest disparities in home insurance costs.

Homeowners insurance in Alabama costs higher than the national average. In addition, Alabama's extreme weather, plus tropical storms and hurricanes in the warmer months, may cause higher premiums. The best way to find the most affordable home insurance in Alabama is by getting quotes from multiple insurers, comparing, and buying the cheapest one.

So, which is the best homeowners insurance in Alabama? Which are the home insurance companies in Alabama? How can you find cheap home insurance quotes in Alabama? Keep reading our review of Alabama home insurance to know in detail.

What does a homeowners insurance policy cover?

A typical homeowners insurance in Alabama covers your residence for issues not specifically excluded from coverage. Also, tornadoes, fire, explosions, theft, vandalism, and tornadoes are just a few problems that home insurance may cover.

Ideally, home insurance offers the following coverages.

Dwelling: If your house gets damaged by one of the events covered by the policy, this coverage will pay to restore or replace it. It also includes annexed buildings like a deck or garage.
Liability: This homeowners insurance covers any harm you or your family unintentionally cause to another person or their property. Liability also covers the costs of settlements, judgments, and legal defense if you get sued.
Other structures: It covers the cost of repairing or replacing standalone buildings such as sheds, fences, or a barn.
Personal property: This coverage pays to restore or replace your personal belongings in a covered event like theft or fire. Your possessions may include furniture, clothing, accessories, electronics, jewelry, and other things.
Medical payments to others: It takes care of minor medical claims made by those not living in your home, regardless of fault. For instance, medical payments insurance could cover minor medical costs if a visiting friend or colleague falls on your deck's steps. The quantity of coverage is minimal, starting at just $1,000.
Additional living expenses: It covers additional costs like a hotel stay, restaurant meals, and other necessary services, including storage, if you cannot reside in your home due to a situation covered by your policy (such as a tornado).

What other risks may be covered by a home insurance policy?

Over the years, homeowners in Alabama have dealt with various disasters. Floods, wildfires, and tornadoes are the least frequent natural disasters, while hurricanes and severe storms are the most frequent. You can opt for hurricane and flood coverage while buying Alabama home insurance.

Homeowner insurance in Alabama has a hurricane deductible due to the frequency of hurricanes there. It is a deductible that is added to your home's dwelling coverage limit in the event of a designated storm and ranges from 1%-10% in most cases. For instance, if the $300,000 cap on your home insurance and your deductible is 5%, your financial obligation would be $15,000 instead.

What isn't covered by a typical homeowners insurance policy?

A standard homeowners insurance in Alabama may not cover floods, sinkholes, earthquakes, power outages, wear and tear, vermin and pest infestations, war, and purposeful loss.

The cheapest home insurance companies in Alabama

While buying a house, the priority should be finding cheap homeowners insurance in Alabama. Our research found that Farmers offers the cheapest Alabama home insurance with an annual average rate of $616. With an annual average rate of $1,219, Allstate offers the second lowest homeowners insurance in Alabama.

Insurer	Average annual rate
Farmers	$616
Allstate	$1,219
Cincinnati	$1,330
Metlife	$1,617
Auto-Owners	$1,687
State Farm	$1,838
USAA	$2,077
Alfa	$2,460
Travelers	$2,970
Country Financial	$3,215
Nationwide	$3,544

So, how can you lower the rate of home insurance in Alabama? The ideal way is by getting home insurance quotes in Alabama from multiple insurance companies, comparing, and buying the one with the lowest quote. Or, you can check the various discounts your insurer offers and buy the ones you qualify for.

The best homeowner's insurance in Alabama for those with poor credit

Late and missed rent, car, and credit card payments not only damage your credit score but can also result in increased insurance premiums from some insurers. Insurance companies see low credit scores as risky and more frequent home insurance claims. So, they often charge higher Alabama home insurance premiums for customers with low credit scores.

With an average annual rate of $2,360, Allstate is the best home insurance provider for people with a low credit score. With a yearly rate of $2,912, Farmers will be your next best option.

Insurer	Average annual rate
Allstate	$2,360
Farmers	$2,912
State Farm	$3,146
Alfa	$5,969

" Homeowners insurance in Alabama costs about $2,116 with a $500 deductible and as low as $1,549 with a $5,000 deductible. "

The best homeowners insurance in Alabama for pool owners

Alabama homeowners insurance rates are higher when there is a pool as there is a higher chance of accidents and liability claims. With an average annual rate of $1,324, Farmers is the best insurer for homeowners with a pool. Alfa offers the most expensive home insurance in this segment.

Insurer	Average annual rate
Farmers	$1,324
Allstate	$1,361
State Farm	$1,838
Alfa	$3,643

Homeowners Insurance deductibles in Alabama

When purchasing an Alabama home insurance policy, homeowners have various options, including how much their deductible will be. The amount of your deductible can significantly impact your insurance costs. You must pay a deductible before the insurance company pays for a claim.

Ideally, your premium will be higher the lower your deductible is. Consumers looking for lower insurance rates should consider a greater homeowners deductible. In the case of a covered loss, remember that you should only set your deductible as high as you can afford. These are the home insurance premiums in the state by deductibles.

Deductible Level	Average annual rate
$500	$2,116
$1,000	$1,974
$1,500	$1,901
$2,000	$1,781
$5,000	$1,549

Alabama homeowners insurance costs by city

Be mindful that cities in Alabama have different home insurance rates. The policy cost may vary depending on city-specific factors like the number of claims filed in the neighborhood. Thus, the ZIP Code will influence the cost of Alabama home insurance. Here are the average rates of some of the cities.

City	Annual Average Rate
Abbeville	$1,859
Abernant	$2,573
Adamsville	$1,920
Adger	$2,003
Akron	$2,069
Alabaster	$1,573
Albertville	$2,117
Alexander City	$1,665
Alexandria	$2,012
Allgood	$2,856
Alpine	$1,969
Alton	$2,529
Andalusia	$1,931
Anderson	$2,006
Annemanie	$2,081
Anniston	$1,984
Arab	$2,088
Ardmore	$1,942
Argo	$1,927
Ariton	$1,966
Arley	$2,340
Arlington	$2,062
Ashford	$1,897
Ashland	$1,967
Ashville	$2,143
Athens	$1,790
Atmore	$1,929
Attalla	$2,055
Auburn	$1,594
Auburn University	$2,277
Axis	$2,232
Babbie	$1,941
Baileyton	$2,057
Ballplay	$2,078
Banks	$1,842
Bankston	$2,148
Bay Minette	$2,348
Bayou La Batre	$2,954
Beaverton	$2,215
Belk	$2,059
Bellamy	$2,412
Belle Fontaine	$2,901
Belle Mina	$2,582
Bellwood	$2,126
Berry	$2,132
Bessemer	$1,905
Billingsley	$1,894
Birmingham	$1,936
Black	$2,061
Blue Ridge	$1,688
Boaz	$2,155
Boligee	$2,352
Bon Air	$2,627
Bon Secour	$2,865
Booth	$2,520
Boykin	$2,114
Brent	$1,974
Brewton	$1,813
Bridgeport	$2,090
Brierfield	$1,878
Brighton	$1,973
Brilliant	$2,330
Brook Highland	$1,487
Brooklyn	$2,705
Brookside	$1,987
Brookwood	$1,893
Brownsboro	$1,801
Brundidge	$1,871
Bryant	$2,152
Bucks	$2,888
Buhl	$1,855
Burnwell	$2,948
Bynum	$2,729
Calera	$1,549
Calvert	$2,491
Camden	$1,979
Camp Hill	$1,673
Campbell	$2,132
Capshaw	$1,863
Carbon Hill	$2,362
Cardiff	$2,433
Carlisle-Rockledge	$2,101
Carlton	$2,138
Carrollton	$2,080
Catherine	$2,144
Cecil	$1,772
Cedar Bluff	$2,146
Center Point	$1,916
Centre	$2,149
Centreville	$1,970
Chancellor	$1,920
Chapman	$2,612
Chatom	$2,347
Chelsea	$1,515
Cherokee	$2,126
Chickasaw	$2,298
Childersburg	$1,942
Choccolocco	$1,972
Chunchula	$2,357
Citronelle	$2,180
Clanton	$1,899
Clay	$2,527
Clinton	$2,606
Clopton	$2,018
Cloverdale	$2,661
Coaling	$1,798
Coats Bend	$2,021
Coden	$2,834
Coffee Springs	$1,936
Columbia	$1,921
Columbiana	$1,646
Cook Springs	$1,942
Coosada	$1,741
Cordova	$2,307
Cottondale	$1,787
Cottonton	$2,539
Courtland	$2,155
Cowarts	$1,909
Coy	$2,045
Cragford	$1,866
Creola	$2,423
Cropwell	$2,002
Crossville	$2,096
Cuba	$2,362
Cullman	$1,949
Cusseta	$1,754
Dadeville	$1,659
Daleville	$1,905
Daphne	$2,431
Dauphin Island	$2,758
Daviston	$1,712
Dawson	$2,209
De Armanville	$2,673
Deatsville	$1,690
Decatur	$1,888
Deer Park	$2,372
Delmar	$3,007
Delta	$1,994
Demopolis	$1,886
Detroit	$2,333
Dickinson	$2,039
Dixons Mills	$2,043
Docena	$1,970
Dolomite	$1,989
Dora	$2,054
Dothan	$1,783
Dozier	$1,891
Duncanville	$1,797
Dunnavant	$1,618
Dutton	$2,078
East Brewton	$1,819
East Tallassee	$2,364
Eastaboga	$2,002
Echola	$1,834
Edgewater	$2,024
Edwardsville	$2,024
Eight Mile	$2,526
Elba	$1,912
Eldridge	$2,329
Elkmont	$1,907
Elmore	$1,739
Elrod	$1,840
Emelle	$2,341
Emerald Mountain	$1,727
Enterprise	$1,786
Epes	$2,359
Equality	$1,820
Estillfork	$2,226
Eufaula	$1,975
Eutaw	$2,394
Evergreen	$1,956
Excel	$2,626
Fackler	$2,155
Fairfield	$1,978
Fairhope	$2,595
Fairview	$2,004
Falkville	$2,051
Fayette	$2,106
Five Points	$1,988
Flat Rock	$2,206
Florala	$1,993
Florence	$2,156
Foley	$2,486
Forest Home	$1,899
Forestdale	$1,979
Forkland	$2,379
Fort Deposit	$2,418
Fort Mitchell	$1,784
Fort Payne	$2,069
Fort Rucker	$1,920
Franklin	$2,038
Frankville	$2,327
Fulton	$1,993
Fultondale	$1,716
Furman	$2,727
Gadsden	$1,982
Gainestown	$2,212
Gallant	$2,170
Gallion	$1,988
Gantt	$2,715
Garden City	$2,069
Gardendale	$1,680
Gaylesville	$2,108
Geneva	$1,933
Georgiana	$1,924
Geraldine	$2,197
Gilbertown	$1,995
Glen Allen	$2,147
Glencoe	$1,988
Glenwood	$1,919
Good Hope	$1,997
Goodsprings	$2,974
Goodwater	$1,913
Goodway	$2,580
Gordonville	$2,422
Goshen	$1,790
Grady	$1,758
Graham	$1,962
Grand Bay	$2,581
Grayson Valley	$1,843
Graysville	$1,984
Green Pond	$1,947
Greensboro	$2,087
Greenville	$1,842
Grimes	$1,852
Groveoak	$2,203
Guin	$2,287
Gulf Shores	$2,700
Guntersville	$2,053
Gurley	$1,913
Hackleburg	$2,340
Hackneyville	$1,689
Haleyville	$2,234
Hamilton	$2,263
Hammondville	$2,160
Hanceville	$2,036
Hardaway	$2,172
Harpersville	$1,719
Hartford	$1,958
Hartselle	$1,886
Harvest	$1,815
Hatchechubbee	$1,784
Hayneville	$2,403
Hazel Green	$1,861
Headland	$1,788
Heflin	$1,915
Helena	$1,618
Henagar	$2,189
Higdon	$2,227
Highland Home	$1,831
Highland Lake	$2,112
Highland Lakes	$1,512
Hodges	$2,249
Hokes Bluff	$2,006
Hollins	$1,942
Holly Pond	$2,016
Hollytree	$2,141
Hollywood	$2,088
Holt	$1,757
Holtville	$1,739
Holy Trinity	$2,500
Homewood	$2,013
Honoraville	$1,893
Hoover	$1,567
Horton	$2,168
Houston	$2,379
Hueytown	$1,911
Huguley	$1,872
Huntsville	$1,900
Huxford	$2,560
Indian Springs Village	$1,502
Irondale	$1,771
Irvington	$2,698
Ivalee	$2,098
Jachin	$2,390
Jack	$1,886
Jackson	$1,957
Jacksons Gap	$1,632
Jacksonville	$2,015
Jasper	$2,226
Jefferson	$2,576
Jemison	$1,811
Jones	$1,905
Joppa	$2,046
Kansas	$2,344
Kellerman	$2,556
Kellyton	$1,781
Kennedy	$2,118
Kent	$2,456
Kimberly	$1,897
Kinsey	$1,822
Kinston	$1,855
Knoxville	$2,366
La Fayette	$1,878
Lanett	$1,860
Langston	$2,233
Lapine	$1,895
Lawley	$1,959
Leeds	$1,774
Lenox	$2,179
Leroy	$2,213
Lester	$1,913
Letohatchee	$2,555
Level Plains	$1,876
Lexington	$2,046
Lillian	$2,659
Lincoln	$1,939
Linden	$1,896
Lineville	$1,900
Lipscomb	$1,990
Little River	$2,299
Littleville	$2,159
Livingston	$2,415
Loachapoka	$2,354
Lockhart	$2,064
Locust Fork	$2,142
Lookout Mountain	$2,049
Lower Peach Tree	$2,137
Loxley	$2,179
Luverne	$1,860
Lynn	$2,423
Madison	$1,785
Magnolia	$2,024
Magnolia Springs	$2,553
Malcolm	$2,527
Malvern	$1,859
Marbury	$1,852
Margaret	$1,928
Marion	$2,623
Marion Junction	$2,214
Mathews	$1,794
Maxwell Air Force Base	$1,752
Maxwell Air Force Base Gunter Annex	$1,673
Maylene	$1,522
McCalla	$1,847
McDonald Chapel	$2,026
McKenzie	$1,944
McShan	$2,089
McWilliams	$2,688
Meadowbrook	$1,502
Megargel	$2,613
Melvin	$1,980
Mentone	$2,147
Meridianville	$1,892
Mexia	$2,645
Midfield	$1,988
Midland City	$1,847
Millbrook	$1,730
Millerville	$1,900
Minor	$2,035
Minter	$2,367
Mobile	$2,455
Monroeville	$1,948
Montevallo	$1,650
Montgomery	$1,695
Montrose	$3,433
Moody	$1,882
Moores Mill	$1,850
Mooresville	$1,856
Morris	$1,901
Morvin	$2,157
Moulton	$2,151
Moundville	$2,032
Mount Olive	$1,757
Mountain Brook	$1,632
Mulga	$2,009
Muscadine	$2,087
Muscle Shoals	$1,942
Myrtlewood	$1,977
Nanafalia	$2,689
Napier Field	$1,853
Natural Bridge	$3,001
Needham	$1,984
New Brockton	$1,821
New Castle	$1,774
New Hope	$1,892
New Site	$1,697
Newton	$1,872
Newville	$1,839
Normal	$2,602
Northport	$1,732
Notasulga	$1,899
Oak Hill	$2,727
Odenville	$1,922
Ohatchee	$2,095
Oneonta	$2,067
Opelika	$1,632
Opp	$1,830
Orange Beach	$2,630
Our Town	$1,693
Owens Cross Roads	$1,795
Oxford	$1,942
Ozark	$1,834
Paint Rock	$2,197
Palmerdale	$2,518
Panola	$2,351
Pansey	$2,005
Parrish	$2,297
Pelham	$1,519
Pell City	$1,915
Pennington	$1,992
Perdido	$2,084
Perdido Beach	$2,692
Perdue Hill	$1,928
Perote	$2,585
Peterman	$1,989
Peterson	$2,539
Petrey	$2,570
Phenix City	$1,710
Phil Campbell	$2,251
Piedmont	$2,145
Pike Road	$1,754
Pinckard	$1,847
Pine Level	$1,792
Pinson	$1,851
Pisgah	$2,153
Pittsview	$1,812
Plantersville	$2,116
Pleasant Grove	$1,859
Point Clear	$2,678
Powell	$2,136
Prairie	$2,146
Prattville	$1,712
Priceville	$1,924
Prichard	$2,419
Princeton	$2,225
Quinton	$2,271
Rainbow City	$2,005
Rainsville	$2,122
Ralph	$1,820
Randolph	$1,920
Range	$2,183
Red Bay	$2,100
Red Level	$1,935
Redland	$1,723
Reeltown	$1,704
Rehobeth	$1,851
Remlap	$2,126
River Falls	$1,918
Riverside	$1,943
Roanoke	$1,969
Robertsdale	$2,315
Rock Mills	$1,938
Rockford	$1,873
Rogersville	$2,055
Russellville	$2,214
Rutledge	$1,913
Ryland	$2,588
Safford	$2,462
Saginaw	$2,317
Saks	$1,999
Salem	$1,732
Samantha	$2,479
Samson	$1,980
Saraland	$2,450
Sardis City	$2,141
Satsuma	$2,266
Sayre	$1,747
Scottsboro	$2,070
Seale	$1,856
Selma	$2,081
Selmont-West Selmont	$2,106
Seminole	$2,580
Shannon	$2,480
Sheffield	$1,927
Shelby	$1,677
Shoal Creek	$1,515
Shorter	$1,906
Shorterville	$2,046
Siluria	$2,325
Silverhill	$2,605
Sipsey	$2,296
Skipperville	$1,957
Slocomb	$1,938
Smiths Station	$1,706
Smoke Rise	$1,954
Southside	$2,011
Spanish Fort	$2,557
Spring Garden	$2,858
Spruce Pine	$2,342
St. Elmo	$3,177
St. Stephens	$2,196
Stanton	$1,867
Stapleton	$2,603
Steele	$2,029
Sterrett	$1,673
Stevenson	$2,128
Stewartville	$1,931
Sulligent	$2,166
Sumiton	$2,228
Sunflower	$2,466
Susan Moore	$2,200
Sycamore	$1,930
Sylacauga	$1,886
Sylvania	$2,163
Talladega	$1,926
Tallassee	$1,729
Tanner	$1,896
Tarrant	$1,937
Taylor	$1,799
Theodore	$2,505
Thomasville	$2,092
Thorsby	$1,873
Tibbie	$2,304
Tidmore Bend	$1,999
Tillmans Corner	$2,458
Toney	$1,822
Town Creek	$2,097
Toxey	$1,946
Trafford	$2,211
Trenton	$2,202
Trinity	$1,976
Troy	$1,948
Trussville	$1,738
Tuscaloosa	$1,893
Tuscumbia	$1,939
Tuskegee	$1,927
Tuskegee Institute	$1,926
Tyler	$2,241
Underwood-Petersville	$1,950
Union Springs	$2,301
Uniontown	$2,322
Valhermoso Springs	$1,950
Valley	$1,849
Valley Grande	$2,104
Valley Head	$2,200
Vance	$1,894
Vandiver	$1,679
Vernon	$2,112
Vestavia Hills	$1,632
Vina	$2,183
Vincent	$1,767
Vinegar Bend	$2,280
Wagarville	$2,464
Walnut Grove	$2,168
Ward	$2,434
Warrior	$1,810
Watson	$2,454
Wattsville	$2,696
Waverly	$1,735
Weaver	$1,991
Webb	$1,859
Wellington	$2,051
Weogufka	$1,965
West End-Cobb Town	$2,040
West Greene	$2,587
Westover	$2,408
Wetumpka	$1,721
Whatley	$2,004
White Plains	$1,990
Wilmer	$2,406
Wilton	$2,417
Winfield	$2,275
Wing	$2,040
Woodstock	$1,934
Woodville	$2,088
York	$2,318

Home and auto insurance bundling in Alabama

What's another way by which you can save on homeowners insurance in Alabama? That's by bundling the auto and home insurance in Alabama. Combining these policies can save around $150 on your Alabama home insurance.

Average annual rate (without bundling)	Average annual rate (with bundling)	Yearly savings (in $)	Yearly savings (in %)
$1,717	$1,567	$150	12%

Home Insurance Discounts in Alabama

Using the discounts provided by the insurers is the best way to lower homeowners insurance premiums in Alabama. But be aware that all insurers won't offer every available discount. So, you must ask about the discounts before buying a home insurance policy in Alabama. Also, always ensure to buy the only discounts that you qualify for.

Insurer	Bundling Discounts	Loyalty Discounts	Military Discounts	New Home Credit Discounts	Claim-Free Discounts	Protective Devices Discounts
Farmers	✓	✓	-	✓	✓	✓
Allstate	✓	✓	-	✓	✓	-
State Farm	✓	-	-	-	✓	✓
USAA	✓	✓	✓	-	✓	✓
Nationwide	✓	-	-	✓	✓	✓
Liberty Mutual	✓	-	-	-	-	-
Progressive	✓	-	-	✓	-	✓
Amica	✓	-	-	✓	✓	✓
Chubb	✓	-	-	✓	✓	✓

Comparing Common Features Across Top Companies

Are you planning to buy the best homeowners insurance in Alabama? Then there are some features you must look into.

Insurer	Identity Theft Protection	Valuable Possessions	Water Backup	Other Structures Coverage	Dwelling /Personal Property Replacement
Farmers	Optional	✓	No	Optional	Optional
Allstate	Optional	Optional	Optional	✓	Optional
State Farm	Optional	Optional	Optional	✓	Optional
USAA	✓	Optional	No	✓	✓
Nationwide	Optional	Optional	Optional	✓	Optional
Liberty Mutual	Optional	Optional	Optional	✓	Optional
Progressive	No	Optional	Optional	✓	✓
Amica	Optional	Optional	Optional	✓	Optional
Chubb	Optional	Optional	✓	✓	✓

Common Causes of Home Insurance Claims in Alabama

Due to the state's location near the Gulf of Mexico and in Dixie Alley, a ring of states with storm activity similar to that of Tornado Alley, Alabama residents may frequently encounter disastrous severe weather. Tornados, floods, and storms are the common reasons that make you raise home insurance claims in the state.

The state ranks 16th in the country for the number of single-family houses prone to damage or destruction from a category five storm, according to data from the Insurance Information Institute (Triple-I). Even though many Alabama home insurance policies cover wind and lightning damage, your policy's terms may restrict your coverage.

It's important to know how your homeowner's insurance handles the risks you're most vulnerable to ensure your home remains protected if you suffer a property loss.

Natural disaster coverage in Alabama

Do homeowners insurance cover tornadoes in Alabama?

In Alabama, which experiences 47 tornadoes annually, it is crucial to protect your home from tornado damage. Make sure your Alabama homeowners insurance contains windstorm protection since wind is the main cause of tornado damage.

Usually, your house's exterior and general structure gets protected from the wind. Depending on your coverage type, interior damage may only be protected when it results from exterior damage, such as a broken window. The average level of coverage for detached buildings is 10% of the value of the insured home.

Keep in mind that your policy may not cover some storm-related damages. For instance, your policy won't cover damages due to a flood unless you have purchased flood insurance.

Does homeowners insurance cover hurricanes in Alabama?

Insurers are hesitant to take on the risks of hurricanes as they can destroy entire communities and cause catastrophic property loss. You may be at a comparatively high risk of experiencing hurricane damage if you own a home in Alabama. Basic Alabama home insurance won't be enough to cover damage from hurricanes. You would need to strengthen your policy with flood and windstorm insurance, which is required to cover repairs or replacements.

Suppose you live in an area that is particularly vulnerable to hurricanes. In that case, your insurer may require you to have a separate hurricane deductible in some states. If you live in a coastal area, reviewing and understanding your homeowners policy is crucial.

Hurricane deductible rates

Insurer	Average yearly rate with Hurricane coverage
Cincinnati	$1,243
Centauri Specialty	$1,518
AAA	$1,576
Country	$1,788
USAA	$1,793

Does homeowners' insurance cover floods in Alabama?

Homeowners' insurance policies don't cover damage caused by floods, whether it results from a windstorm or hurricane. You must purchase insurance from a private flood insurance provider or the National Flood Insurance Program to protect your home against flood damage (NFIP).

Private flood insurance policies may offer different levels of coverage; however, if you purchase via the NFIP, you will get the following coverage.

25,000 for structural coverage
$100,000 for personal property coverage

Factors that Affect Home Insurance Rates in Alabama

Are you planning to buy Alabama home insurance? Then consider these factors before buying one!

Your location: The cost of homeowners insurance in Alabama is greater for homes in high-crime zones. Insurance costs are also greater for homes in hurricane-prone regions, such as Gulf Coast communities.
Rebuild rate: Your home insurance rate may be affected by building supplies and labor costs in your neighborhood.
Age/condition : Insurance for newer, well-maintained properties is lower than for older ones.
Claims history: Homeowners with a history of making house insurance claims frequently face higher insurance premiums.
Credit history: Your credit score is a criterion that many insurance companies consider. Premiums for homeowners with bad credit are frequently higher.
Dog breed: Be ready to pay a higher Alabama home insurance cost if you buy a dog that your insurance company classifies as a 'dangerous breed.'

Tips for Buying Homeowners Insurance

Assess your rebuilding costs: Ask your insurance agent or a reliable builder how much it would cost to rebuild your house using local labor and fair material rates. You should have at least this coverage for your home, if not more.
Review the advantage of replacement cost over actual cash value: Think about getting replacement cost coverage for your house and possessions. You'll obtain the money you need to buy new ones to replace your old ones. You will receive a depreciated amount if you use actual cash value.
Consider add-on coverage for your expensive items: Consider scheduling personal property for high-value things like expensive gadgets, sports, or musical instruments, as well as antiquities, if you have any. You can fully compensate them with this coverage.
Evaluate your liability coverage needs: Find out how much liability insurance you require. Choose at least $300,000 or a sum that would cover the potential loss in the event of a lawsuit.
Assess coverage gaps: Some house insurers provide extra benefits, like greater limits for landscaping items like trees and shrubs. I provide coverage in the case they get damaged in a covered incident or assistance with paying for damage from water or sewer backups.
Check financial ratings: Verify the financial strength rankings by organizations like AM Best and Standard & Poor's. You may not be eligible for a mortgage from some firms unless your insurer has a financial strength rating of at least 'A.'
Ask for discounts: Make sure you're taking advantage of all the discounts you qualify for. For instance, you might be eligible for a discount if your home has particular security measures or if you have your home and auto insurance from the same provider.
Compare quotes from multiple insurance companies: The cost of a single Alabama home insurance policy might vary greatly amongst insurance providers. You won't know how much you might save if you don't compare prices.

" Using discounts offered by insurers is the best way to lower homeowners insurance premiums in Alabama "

Most Common Disasters in Alabama

Over the years, homeowners in Alabama have dealt with various disasters. Floods, wildfires, and tornadoes are the least frequent natural disasters, while hurricanes and severe storms are the most frequent.

When a storm strikes, Alabama's Gulf Coast may not be the best place to spend a day at the beach. Homeowner insurance in Alabama includes a hurricane deductible due to the frequency of hurricanes there.

See what you could save on home insurance

Zip Code

Disasters by Month and Year in Alabama

Since the state is prone to many disasters, homeowners must be aware of this data to buy an Alabama home insurance policy accordingly.

Disasters by month

According to Federal Emergency Management Agency (FEMA), since 1953, most declared disasters happened in September, followed by March.

Month	Number of disasters
January	4
February	5
March	16
April	15
May	8
June	1
July	6
August	4
September	18
October	5
November	6
December	6

Disasters by year

According to FEMA, residents of Alabama have experienced an average of two proclaimed disasters a year during the past 20 years. COVID-19 epidemic and several severe storms, thunderstorms, flooding, wind events, and tornadoes affected the state in 2020.

Year	Number of disasters
2001	3
2002	2
2003	1
2004	1
2005	4
2006	0
2007	1
2008	3
2009	5
2010	1
2011	2
2012	2
2013	0
2014	1
2015	0
2016	1
2017	3
2018	3
2019	2
2020	6

How to Get Alabama Home Insurance with Way.com

An average home insurance cost in Alabama costs you around $1,717. But do you want to buy cheap homeowners insurance in Alabama? That's where Way.com help you by finding the best home insurance companies in Alabama.

You can visit our website or app to find the most affordable Alabama home insurance rates. Visit Way, get multiple insurance quotes, and compare and buy the cheapest one. Furthermore, our Alabama insurance agents can help you understand the state's complex laws, insurance terms, and discounts. Therefore, contact our home insurance agents if you're looking for affordable Alabama homeowners insurance.

Home Insurance Data Methodology

The home insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

FAQs

Is homeowners insurance required in Alabama?

No, Alabama law doesn't mandate homeowners insurance. Still, your mortgage company will probably demand it before approving a loan.

What is the cheapest homeowners insurance in Alabama?

With an average annual rate of $616, Farmers offer the most affordable Alabama home insurance.

Which home insurance company provides the cheapest home insurance rates in Alabama?

Our research found that Farmers offer the cheapest homeowners insurance in Alabama, with a yearly rate of $616.

How can I save money on homeowners insurance?

The best way is by bundling your home and auto insurance policies. Another way is to ask your insurer for the discounts you qualify for.

How much should home insurance cost in Alabama?

On average, Alabama homeowners insurance costs you around $1,717 yearly.

How much is home insurance a month in Alabama?

On average, homeowner insurance in Alabama costs you $143 a month.

What is the 80% rule in homeowners insurance?

According to the '80% rule,' an insurer will only completely cover the cost of a home's damage if the owner has insurance coverage totaling at least 80% of the home's entire replacement cost.

Who has the best hurricane insurance in Alabama?

With a yearly average rate of $1,243, Cincinnati offers the best hurricane insurance in the state.

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Best homeowners insurance in Alabama (August 23)