Homeowners in Alabama pay an average of $2,947 each year for a policy with $300,000 in dwelling coverage and a $1,000 deductible. But some insurance companies offer more affordable coverage than others.

Depending on your location in Alabama, natural disasters like severe thunderstorms, tornadoes, or hurricanes could threaten your home and property. Adding a windstorm rider to your standard homeowners insurance could offer more comprehensive protection. 

Here’s what you should know about comparing quotes and finding homeowners coverage in Alabama.

Best home insurance companies in Alabama

People seeking home insurance in Alabama have no shortage of great options. Many top-notch insurers provide coverage in the state, but the best home insurance company for you will depend on your situation and specific needs.

The companies listed below are a good place to start your search.

Cheapest rates: Foremost

Best insurer for protective feature discounts: State Farm

Best insurer for optional coverages: Allstate

Best insurer for veterans: USAA

Cheapest home insurance in Alabama

Allstate offers the cheapest home insurance in Alabama. A policy from this insurance company costs around $142 per month.

Here are some top insurers offering cheap coverage for Alabama homeowners.

Cost of homeowners insurance in Alabama

The average cost of homeowners insurance in Alabama is $2,947 for $300,000 in dwelling coverage with a $1,000 deductible. This is higher than the national average of $2,529 per year for the same coverage and deductible amounts.

Weather patterns in Alabama are likely a factor in its high insurance costs. Tornadoes and severe thunderstorms are fairly common in this state, and hurricanes can threaten homes along the Gulf Coast. Besides weather, insurance companies consider your location; home’s size, age, and condition; credit history; desired coverage level; and more when determining your home insurance rates.2

Cost of homeowners insurance by dwelling coverage amount

The cost of your homeowners insurance will also vary depending on how much dwelling coverage you need. In general, your dwelling coverage limit should equal your home’s replacement cost. Higher coverage limits will result in higher property insurance premiums.

Here’s a look at dwelling coverage limits and how they tie into insurance prices. Rates shown below assume a policy with a $1,000 deductible.

Cost of homeowners insurance by deductible

Your chosen deductible will also affect your home insurance rates. A deductible is the amount you pay following a claim before your insurance pays out. Homeowners insurance deductibles often range from $500–$2,000 or $2,500; generally, the higher your deductible, the lower your insurance rates.

Here’s how deductibles could factor into your average annual homeowners insurance premiums in Alabama for a policy with $300,000 in dwelling coverage.

How to get cheap homeowners insurance in Alabama

You can’t control certain factors that affect your homeowners insurance rates, such as your home’s age, size, or location. But you can still take some steps to get the best rates on homeowners coverage in Alabama.3

• Opt for a higher deductible. A higher deductible could result in lower insurance rates. Just keep in mind that you’ll also need to pay more out of pocket if you file a claim. But this risk could be worth it if a higher deductible saves you a considerable amount.

• Add protective features. Security features such as alarm systems and deadbolt locks could earn you a homeowners insurance discount. Likewise, protective features like storm shutters or a reinforced roof could also help lower your rates, especially if you live in an area that’s prone to severe weather.

• Ask about discounts. Many homeowners insurance companies offer special discounts for things like bundling your homeowners and auto insurance coverage, opting for paperless statements, installing protective features, and more. Ask prospective insurers about available discounts that could help you save money.

• Shop around. Since average rates vary across insurance companies, comparison shopping is one of the best ways to ensure you get a decent price on your homeowners coverage. Get insurance quotes from a few insurers and then compare coverage and costs before deciding on the best options.

How much homeowners insurance do you need in Alabama?

The amount of homeowners insurance you need depends upon various things, including the value of your home, your personal preferences, and whether you plan to take out a mortgage. If you take out a mortgage, your lender will require you to purchase a home insurance policy to protect its loan collateral: your home.

Before obtaining a policy, it’s important to understand exactly what a prospective home insurance policy will cover. This can help ensure you get the protection you need for your new home. For instance, some policies may not cover windstorm damage; this coverage is often an optional add-on, but you could need it in Alabama.

What are some of the biggest risks when owning a home in Alabama?

Different locations present different risks to homeowners. For example, blizzards are common in the Northeastern U.S., but you probably won’t get heavy snow in Alabama. But you could still experience extreme weather, like severe thunderstorms, tornadoes, or hurricanes.

Here’s some information about these common perils and whether a standard homeowners policy covers them: