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Best homeowners insurance in Alabama for 2024

Updated Apr 12, 2024

Based on our analysis, USAA, Allstate, State Farm, Auto-Owners and Cincinnati are writing the best home insurance policies in Alabama.

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Compare the best homeowners insurance companies in Alabama

Based on our analysis of the Alabama homeowners insurance market and data sourced from Quadrant Information Services, USAA, Allstate, State Farm, Auto-Owners and Cincinnati Insurance are among the top choices for coverage. Four of our five featured companies have average rates lower than the state average of $2,969 per year, or $247 a month. We also reviewed each company's ranking for financial stability with AM Best, as well as the customer satisfaction scores from J.D. Power's 2023 Home Insurance Study. If you’re shopping for the best home insurance in Alabama, you may want to start with quotes from these companies:

Insurance company
Bankrate Score
Info
Average monthly premium Average annual premium
4.7
Rating: 4.7 stars out of 5
$149
$1,789
4.2
Rating: 4.2 stars out of 5
$257
$3,088
4.2
Rating: 4.2 stars out of 5
$196
$2,355
4.6
Rating: 4.6 stars out of 5
$230
$2,755
$170
$2,045
*Premiums are for $300K in dwelling coverage **USAA not officially ranked by J.D. Power due to eligibility restrictions
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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Bankrate's trusted insurance industry expertise

Read our full methodology

The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

46

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

The top 5 home insurance companies in Alabama

Best for military-focused coverage

USAA

4.7

Rating: 4.7 stars out of 5

Avg. premium for $300K dwelling

$149/mo

Avg. premium for $300K dwelling

$1,789/yr

Customer satisfaction

881/1,000

Best for discount opportunities

Allstate

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$257/mo

Avg. premium for $300K dwelling

$3,088/yr

Customer satisfaction

809/1,000

Best for local agencies

State Farm

4.2

Rating: 4.2 stars out of 5

Avg. premium for $300K dwelling

$196/mo

Avg. premium for $300K dwelling

$2,355/yr

Customer satisfaction

829/1,000

Best for robust coverage

Auto-Owners

4.6

Rating: 4.6 stars out of 5

Avg. premium for $300K dwelling

$230/mo

Avg. premium for $300K dwelling

$2,755/yr

Customer satisfaction

834/1,000

Best for low average rates

Avg. premium for $300K dwelling

$170/mo

Avg. premium for $300K dwelling

$2,045/yr

Customer satisfaction

Not rated

Additional Alabama home insurance companies to consider

Foremost

Foremost

Who this may be best for

Homeowners looking for specialized coverage options

Foremost offers standard homeowners policies, in addition to a number of more unique home coverage options like a vacant home endorsement for seasonal or vacation homes. They also have a flood insurance endorsement, which could be a good fit for homeowners in Alabama. This provider is likely best for homeowners who need the specialized coverage options that Foremost Insurance provides.

Travelers

Travelers

Who this may be best for

Homeowners looking for robust policy options

Travelers is another insurance provider that offers a wide range of options for homeowners to build personalized coverage for their unique needs. Some of the more specific endorsements they have that Alabama homeowners may enjoy include extended coverage for jewelry, personal identity protection, and more. Like Foremost Insurance, Travelers may be a good fit for Alabama homeowners looking for personalized coverage options.

How Bankrate chose the best home insurance companies in Alabama

We looked at several aspects of each carrier in our search for the best Alabama homeowners insurance. First, we obtained average rates from Quadrant Information Services. Next, we analyzed each carrier’s coverage offerings, discounts and digital tools, to help you find a company that offers the financial protection you need and the functionality you may want. We also factored in third-party ratings from the 2023 J.D. Power U.S. Home Insurance Study for customer satisfaction, the National Association of Insurance Commissioners (NAIC) for complaint frequency and AM Best for financial strength.

We combined all of this research to create a proprietary Bankrate Score for each company. The Scores are on a scale of 0.0 to 5.0, with higher scores indicating a higher ranking in each category. Knowing the Bankrate Score for each company can help you quickly analyze the overall quality of that carrier’s home insurance product. This might make it easier to find the best home insurance company for you.

Cheapest home insurance companies in Alabama

Though challenging, there are some popular insurance providers in the state who offer cheap home insurance policies. Here are the top providers in Alabama with cheap premiums, starting with USAA as the cheapest.

Carrier Monthly premium for $300K coverage Annual premium for $300k coverage Savings vs state avg. for $300k coverage
$149
$1,789
- $1,180
$170
$2,045
- $924
Centauri
$194
$2,325
- $644
$196
$2,355
- $614
$202
$2,429
- $540

How to get cheap Alabama home insurance

Fortunately, finding the best Alabama home insurance may not mean breaking the bank. Here are several tactics to try when searching for the best cheap home insurance in Alabama:

  • Gather multiple quotes: Gathering more than one quote when you are searching for the best homeowners insurance in Alabama can pay off with significant savings. Every company has its own algorithm for determining rates, so you are likely to get a range of prices when you have multiple quotes. Shopping around allows you to choose the most affordable option.
  • Work on your credit rating: Individuals with high credit ratings have a demonstrated ability to pay their bills in full and on time. This means they are more likely to earn a favorable rate from insurers. Increasing your credit score over time may mean you'll pay less for your policy.
  • Repair your roof: An aging or damaged roof might be the cause of many high-cost claims. If your roof is on the older side, replacing it with a new one might lower your insurance rate. If you use storm-resistant materials, you may even earn a discount from some insurers.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Best home insurance discounts in Alabama

In addition to our strategies above, using discounts wisely may be a way to save significantly on your Alabama home insurance. Most insurers have at least a few, and they might be easy to qualify for. Here are some that are commonly seen across Alabama home carriers:

State regulations mandate carriers to provide discounts if a home's roof meets the Fortified standards established by the Insurance Institute for Business & Home Safety (IBHS).
If you are happy with your homeowners insurance company, consider using it for your vehicle insurance as well. Many carriers offer a discount if you purchase more than one policy from them. You may also be able to earn this discount if you have RV, boat or umbrella coverage with the same carrier.
Your insurance company may reward you for installing safety devices such as smoke detectors, burglar alarms or deadbolt locks. These devices make your home safer, meaning you are less likely to need to file a claim.
You may qualify for lower rates or a discount if you go for a certain amount of time without filing any claims.
Some insurers will reward you with reduced rates if you undertake renovations that help bring your home up to code or reduce the chance of a claim. This may include updates to your home's plumbing, electrical or HVAC systems.

How to save on home insurance policy renewals in Alabama

When you’re up for renewal on your homeowner’s policy, there are a few things you can do to help secure lower premiums going forward.

  • Better credit: In Alabama, insurers can use your credit history when determining your premiums; if you’re able to improve your credit after you’ve taken out your policy, you may be able to have them reassess and offer you a lower premium.
  • No claim history: If you’re able to avoid making claims on your policy, you may be able to get a cheaper premium when renewing your policy.
  • Home renovations: If you’ve made home improvements to make your home more safe and secure, insurance companies may view it as less risky to insure and lower your premiums as a result.
  • Lower coverage limits: If possible, you can lower your coverage limits to secure a lower premium; only do so if you’re still receiving adequate coverage for your property.

How much is home insurance in Alabama?

The average cost of home insurance in Alabama is $2,969 per year for $300,000 in dwelling coverage. Compared to the national average of $2,151 for the same coverage, Alabama homeowners pay about 14 percent more each year. Average rates in Alabama may be higher than the national average due to the state’s position near the coast and relatively high likelihood of being hit with landfalling hurricanes. The state is also prone to severe convective storms and tornadoes. Average home insurance costs are less in Alabama than in neighboring states, though; Mississippi homeowners pay an average of $4,289 per year and Florida’s average home insurance rate is $5,770 per year.

Alabama homeowners insurance rates by city

While the state of Alabama faces its own unique factors for home insurance premiums compared to the rest of the country, where you reside within the state can also impact your rates. Find out what home insurance rates might look like in your area compared to the rest of Alabama.

  • Helena: $2,101 per year — 29 percent below state average
  • Pelham: $2,126 per year — 28 percent below state average
  • Alabaster: $2,129 per year — 28 percent below state average
  • Chelsea: $2,168 per year — 27 percent below state average
  • Leeds: $2,226 per year — 25 percent below state average
  • Dauphin Island: $9,231 per year — 211 percent above state average
  • Coden: $6,763 per year — 128 percent above state average
  • Orange Beach: $6,733 per year — 127 percent above state average
  • Bayou La Batre: $6,703 per year — 126 percent above state average
  • Gulf Shores: $6,691 per year — 125 percent above state average

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Alabama?

Alabama homeowners should be aware of what types of damages their policies cover, and what is excluded. Doing so will allow you to secure additional policies or endorsements to keep your property and belongings best protected. These are some examples of the common types of damages homeowners may deal with that are covered by standard home insurance policies.

  • Wind and tornado damage
  • Fire or lightning
  • Theft and other property damage

Additional home insurance coverage types in Alabama

If you are shopping for Alabama homeowners insurance, it may be important to understand the different types of coverage available and what is covered (and not covered) by a standard home policy. The following coverage endorsements may help ensure your home is financially protected from common causes of loss in Alabama.

  • Roof replacement cost: Alabama is in third place in the Insurance Information Institute's listing of top 10 states for tornadoes. That suggests that you may want to have the most robust coverage possible for roof damage. This endorsement means you may file a claim for the full replacement cost of your damaged roof, rather than just its depreciated value. If you are eligible for this endorsement, it may be worth considering.
  • Service line coverage: Damage to service lines — like your water, gas and electric lines — is generally not covered in basic homeowners insurance policies. You may want to consider adding this type of coverage to your policy to financially protect your home from damage to your service lines.
  • Flood insurance: Floods are common in many parts of Alabama, with some counties experiencing over 100 flood events in the last 30 years, according to the Federal Emergency Management Agency (FEMA). Damage caused by flooding isn’t covered by standard home insurance policies. While a few companies offer flood coverage as an endorsement, you’ll generally need to buy a separate flood insurance policy from the National Flood Insurance Program (NFIP) or from a private carrier that sells flood insurance.

Related content:

Common Alabama home insurance problems

Homeowners in Alabama may face some challenges when securing a homeowner’s policy, such as:

  • Rising rates: Inflation is causing construction-related materials and labor costs to increase, making home replacement or reconstruction more expensive, which often leads to more expensive home insurance premiums for consumers. According to the Insurance Information Institute (Triple-I), replacement costs have increased a cumulative 45 percent over the past four years, outpacing the U.S. inflation rate.
  • Higher risk: The increased rates of flooding, tornadoes and tropical storms in the state may keep homeowners in certain regions from being able to qualify for adequate coverage.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 
5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Written by
Grace Kim
Insurance Contributor

Grace Kim has two years of experience in writing for finance and insurance domains such as Bankrate and Reviews.com. She has written about auto, homeowners, renters and life insurance. She has spent most of her professional experience writing about finance and tech topics.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute