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Best homeowners insurance in Alabama for 2024

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

Updated Mar 14, 2024
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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 $2,085 per year, or $174 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
$62
$746
4.2
Rating: 4.2 stars out of 5
$166
$1,991
4.2
Rating: 4.2 stars out of 5
$177
$2,126
4.6
Rating: 4.6 stars out of 5
$183
$2,199
$79
$945
*Premiums are for $250K in dwelling coverage **USAA not officially ranked by J.D. Power due to eligibility restrictions
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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.

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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

20.7K

ZIP codes examined

1.2M

quotes analyzed

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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.

Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
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100% of homes
need insurance before getting a mortgage
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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 $250K dwelling

$62/mo

Avg. premium for $250K dwelling

$746/yr

Customer satisfaction

881/1,000

Best for discount opportunities

Allstate

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$166/mo

Avg. premium for $250K dwelling

$1,991/yr

Customer satisfaction

809/1,000

Best for local agencies

State Farm

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$177/mo

Avg. premium for $250K dwelling

$2,126/yr

Customer satisfaction

829/1,000

Best for robust coverage

Auto-Owners

4.6

Rating: 4.6 stars out of 5

Avg. premium for $250K dwelling

$183/mo

Avg. premium for $250K dwelling

$2,199/yr

Customer satisfaction

834/1,000

Best for low average rates

Avg. premium for $250K dwelling

$79/mo

Avg. premium for $250K dwelling

$945/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.

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Finding cheap home insurance in Alabama

Alabama homeowners may find it challenging to find a cheap home insurance policy that offers them the coverage they need to protect their home and other personal belongings. This is why it’s important to shop around and request quotes from a number of providers. Based on your unique circumstances, you can select the provider with the best option to fit your budget. Back to top Caret Up

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 $250K coverage Annual premium for $250k coverage Savings vs state avg. for $250k coverage
$62
$746
- $1,339
$79
$945
- $1,140
Centauri
$138
$1,650
- $435
$148
$1,780
- $305
$163
$1,961
- $124

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:

  1. 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.
  2. 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.
  3. 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.

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.
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Understanding home insurance costs in Alabama

Alabama homeowners already pay more than the rest of the country on average for home insurance. The growing number of severe weather incidents and the resulting property damage this causes likely brings insurance providers to pass on the rising costs to policyholders. Back to top Caret Up

How much is home insurance in Alabama?

The average cost of home insurance in Alabama is $2,085 per year for $250,000 in dwelling coverage. Compared to the national average of $1,759 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 $2,028 per year and Florida’s average home insurance rate is $1,968 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.

  • Smiths Station: $1,784 per year — 14 percent below state average
  • Waverly: $1,790 per year — 14 percent below state average
  • Cecil: $1,815 per year — 13 percent below state average
  • Montgomery: $1,815 per year — 13 percent below state average
  • Hope Hull: $1,816 per year — 13 percent below state average
  • Irvington: $2,954 per year — 42 percent above state average
  • Stapleton: $2,941 per year — 41 percent above state average
  • Axis: $2,829 per year — 36 percent above state average
  • Grand Bay: $2,773 per year — 33 percent above state average
  • Silverhill: $2,657 per year — 27 percent above state average

*Rates are for $250,000 in dwelling coverage.

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Insuring your Alabama home

While there is an increasing risk of storms and hazards in Alabama and other states, it may help to explore your coverage options to decide how you can best protect your home. Back to top Caret Up

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

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.

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