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The Best Homeowners Insurance in Alabama [2023]

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Find a top-ranked Homeowners Insurance Agency in your area

Alabama, known as the Yellowhammer State, is known for its Southern hospitality and cuisine. The state features a varied landscape across its 52,419 square miles, with the Appalachian mountains sprawling across the top of the state and giving way to coastal plains stretching to white sand beaches along the Gulf Coast.

Situated along the Gulf of Mexico, Alabama homeowners may find themselves in the path of potential hurricanes, which makes it even more important to find comprehensive coverage to protect your home and personal belongings. 

We at Expertise.com have analyzed a handful of home insurance companies. We’ll uncover everything to know about homeowners insurance in Alabama, and help you find the most comprehensive, cheapest coverage to suit your needs.

Average Cost of Homeowners Insurance in Alabama

The average cost of homeowners insurance in Alabama is $3,909 per year according to Insurance.com. The state’s average home insurance cost is higher than the national average, with Alabama homeowners expected to pay $750 more for insurance than the average U.S. homeowner. 

The cost of home insurance in the Yellowhammer State can differ vastly based on a few key factors:

  • The age of your home: Is your Alabama home an older home that is at risk of more structural wear and tear?

  • The square footage of your home: How big is your home? In general, larger homes will cost more to insure.

  • The materials used to build your home: Was your Alabama home built using materials prone to things like rotting or structural damage?

  • Building costs in your area: Because insurance deals with repairs and replacement, coverage increases with increased building costs.

  • The location in which you live: What are crime rates like? How close are you to a fire department? How close are you to water or the coastline?

  • Any additional features: Does your house have a swimming pool or hot tub that could pose a potential risk to guests? Do you have pets, and if so, what are their breeds? Surprisingly, insurers will look at these things when assessing prices.

  • Your deductible: A higher deductible will decrease your premium, but could cost you more if you file an insurance claim. Talk to your insurance company about diminishing deductibles to get the best plan that suits your payment needs.

Alabama Homeowners Insurance Rates by City

The average annual home insurance rate varies city by city, with Birmingham showing the highest average annual rate in the state. 

To give you an idea of what insurance can cost in your state, we’ve provided a breakdown of the average annual rates by Alabama city

City

Average Annual Rate

Huntsville

Montgomery

Birmingham

Mobile

Tuscaloosa

Hoover

Auburn

Dothan

Madison

Decatur

Florence

Phenix City

Prattville

Gadsden

The Best Homeowners Insurance Companies in Alabama

After extensive research, we at Expertise.com found the following insurance agencies to provide the best, comprehensive coverage in Alabama:

Travelers logo

Travelers


Average Annual Rate: ~ $1,927

Notes: Offers extended replacement cost options for your dwelling

USAA logo

USAA


Average Annual Rate: ~ $1,386

Notes: A great option for veterans or active-duty military members

State Farm logo

State Farm


Average Annual Rate: ~ $2,142

Notes: Great for bundling home and auto

Liberty Mutual logo

Liberty Mutual


Average Annual Rate: N/A

Notes: Offers a robust  selection of discounts

AIG

AIG


Average Annual Rate: N/A

Notes: Providers high coverage limits for high-value homes

Be sure to contact each agency for a more accurate home insurance quote.

Cheapest Homeowners Insurance in Alabama

The cheapest homeowners insurance coverage in Virginia is Farmers for a policy with $300,000 in dwelling and liability coverage, with a $1,000 deductible. 

Remember that each homeowners insurance quote will vary depending on the details of your home and your personal information, so it’s a good idea to get quotes from multiple companies before making a decision. If you’re aiming to keep your home insurance costs low, check Farmers’ coverage options first.

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Find Cheap Homeowners Insurance in Your Area

FAQs

Below, we tackle some common questions to help you make a more informed decision about which homeowners insurance to choose in Alabama specifically.

How to Reduce Homeowners Insurance Costs in Alabama

As we’ve pointed out, the price you pay for insurance can vary substantially across insurers. 

Here are a few ways to reduce costs:

  • Increase your deductible. This will help reduce monthly costs to your insurer, but it may mean paying more out of pocket should you need to make a claim. Similarly, paying your 6-month or 1-year premium in full will drive down monthly costs.

  • Bundle policies. Bundling your home and auto insurance can help you save 5–15% on your insurance premiums. Talk to your insurance company about home and car insurance bundling options and how that helps you save.

  • Take the necessary steps to make your home disaster-resistant. Some examples include:

    • Install a smoke detector and/or fire alarm.

    • Get a burglar alarm and/or dead-bolt locks.

    • Install a sprinkler system.

  • Nix the high-risk accessories. Similar to the above point, rid your home of things that are considered “high risk.” For example, did the kids go off to college? Time to throw out that trampoline that’s sitting in the backyard.

  • Seek out other discounts. Some things to look into:

    • Do you work from home? Insurance providers may feel you’re less prone to theft or may spot a fire or flood sooner.

    • Are you retired? You may qualify for a discount. 

    • Does your employer offer a group deal?

    • Are you a new homeowner? Some companies offer discounts for first-time homebuyers.

    • Even something as simple as choosing paperless billing can help you save!

  • Keep good credit. Some agencies will look at your credit history and charge less for those with good financial strength and standings.

As always, consult your insurance agent to see which of the above discounts you qualify for.

Alabama Insurance Options in Your City

At Expertise.com, our goal is to connect Alabama residents with the best local experts and agencies, so you can find the home insurance policy that safely insures your home and most prized possessions. 

View our list of the 12 best homeowners insurance agencies here

Learn more about the best options in your respective Alabama cities below:

Our methodology evaluates each company based on the quality and quantity of their reviews, their presence on multiple review sites, and their average minimum rating.