Best Homeowners Insurance Companies in Alabama (2025)
Farmers and Allstate offer good value for Alabama homeowners.
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Alabama is one of the most storm-prone areas in the world, making it especially important to protect your home with good insurance. While many state-sponsored grants can help, such as the Strengthen Alabama Homes program, finding affordable coverage can be a challenge.
Homeowners in Alabama pay an average of $2,988 per year for a $300,000 dwelling coverage policy, according to Insurify data — higher than the national average of $2,532 per year.
Here’s what you should know about finding homeowners insurance in Alabama for the right price.
Quick Facts
Alabama homeowners pay a yearly average of $3,210 for a $300,000 dwelling coverage policy with a $500 deductible.
Allstate is the cheapest home insurance company in Alabama, with average monthly premiums of $142 for $300,000 in dwelling coverage.
Many Alabama insurers require a separate windstorm or hurricane deductible for claims stemming from each specific storm.
Best home insurance companies in Alabama
No single insurer will be the best home insurance company for everyone. But a few companies in Alabama stand out for providing better coverage in different situations.
Farmers: Best for property damage coverage
USAA: Best for military members and veterans
State Farm: Best for financial stability
Allstate: Best for affordable coverage
Foremost: Best for mobile home owners
Our editorial team analyzed dozens of regional and national home insurance companies that sell policies in Alabama to assess which offer the best rates, coverage options, customer service, and savings to homeowners. We prioritized competitive rates, 24/7 customer service, homeownership discounts or bundling options, and specialty or supplemental coverages.
Cheapest home insurance in Alabama
Allstate is the cheapest home insurance company in Alabama. It charges $142 per month, on average, according to Insurify data.
Check out some other cheap Alabama insurers in the table below.
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Data reviewed by Chase Gardner)
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Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
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Insurance Company  | Average Annual Premium: With $300,000 in Dwelling Coverage |
|---|---|
| Allstate | $1,704 |
| Farmers | $1,992 |
| Foremost | $2,832 |
| Travelers | $2,856 |
| USAA | $3,048 |
| Nationwide | $3,060 |
| Auto-Owners | $3,120 |
| State Farm | $3,204 |
| Encompass | $3,312 |
| COUNTRY Financial | $3,744 |
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How much does homeowners insurance cost in Alabama?
On average, policyholders pay $249 per month for a $300,000 dwelling coverage policy, according to Insurify data. That’s higher than the national average of $211 per month for a comparable policy.
Home insurance rates tend to be higher in Alabama because of its severe weather risks — storms often pummel homes in the state, especially near the coast. All those storms mean filing more home insurance claims, and that can also affect your rates.
Cheapest home insurance companies in Alabama by dwelling coverage
Dwelling coverage protects your home and any attached structures if a covered peril damages or destroys them. The higher your home’s replacement cost, the more you’ll pay to insure it. The table below shows average annual home insurance costs in Alabama for different dwelling coverage amounts.
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,404 |
| Farmers | $1,464 |
| Foremost | $1,824 |
| Travelers | $2,076 |
| USAA | $2,244 |
| Nationwide | $2,328 |
| Auto-Owners | $2,388 |
| State Farm | $2,484 |
| Encompass | $2,616 |
| COUNTRY Financial | $2,868 |
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Featured in
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,704 |
| Farmers | $1,992 |
| Foremost | $2,832 |
| Travelers | $2,856 |
| USAA | $3,048 |
| Nationwide | $3,060 |
| Auto-Owners | $3,120 |
| State Farm | $3,204 |
| Encompass | $3,312 |
| COUNTRY Financial | $3,744 |
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Featured in
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $2,604 |
| Farmers | $3,348 |
| State Farm | $4,464 |
| USAA | $4,476 |
| Nationwide | $4,536 |
| Travelers | $4,572 |
| Auto-Owners | $4,704 |
| Foremost | $4,860 |
| Encompass | $4,908 |
| COUNTRY Financial | $5,580 |
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Featured in
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $3,780 |
| Farmers | $5,004 |
| State Farm | $5,856 |
| USAA | $6,120 |
| Nationwide | $6,492 |
| Auto-Owners | $6,504 |
| Encompass | $6,624 |
| Travelers | $6,804 |
| Foremost | $7,092 |
| COUNTRY Financial | $7,920 |
Alabama homeowners insurance cost by city
The average cost of home insurance is fairly consistent across the major cities in Alabama, with one exception: Mobile. Surrounded by wetland swamps and highly exposed to the coast, Mobile ranks among the most storm-prone areas in the country.
The table below shows the average cost of home insurance in several cities in Alabama.
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Featured in
City | Average Annual Premium: With $300,000 in Dwelling Coverage |
|---|---|
| Montgomery | $2,496 |
| Huntsville | $2,520 |
| Birmingham | $2,628 |
| Mobile | $4,620 |
What homeowners should know about insurance in Alabama
Homes in coastal states, like Alabama, are especially vulnerable to windstorm damage.[?] To help homeowners, the state offers a tax deduction for residents who set up a “catastrophe savings account” to help rebuild their home and personal property after natural disasters.[?] The following examples are some of the most common risks Alabama homeowners face.
Hurricanes
Alabama doesn’t get quite as many hurricanes as neighboring states.[?] But hurricane losses in the state may increase by as much as 132% over the next 10 years, one recent study predicts.
Home insurance companies often set separate deductibles and coverage rules for named storms like hurricanes. You can lower these costs by getting a FORTIFIED home certification, which can unlock home insurance discounts under Alabama state law. Homeowners in certain counties are even eligible for grants to help cover the cost of these home upgrades.[?]
Tornado damage
Being in the heart of Tornado Alley, where the most dangerous tornadoes in the world regularly roll through, Alabama residents are well aware of what these storms can do to homes.
As with hurricanes, your home insurance policy will cover damage from tornadoes, although some companies charge a separate wind deductible for each storm. Check your policy exclusions for more details.
Flood damage
While storms can affect Alabama residents anywhere in the state, widespread flooding danger is a bit more limited to the coastal counties. Keep in mind, though, that one-third of flood damage claims come from outside of high-risk areas.[?]
Standard home insurance policies don’t cover flood damage. You can check your home’s flood risk on FEMA’s flood map. If you live in a high-risk flood zone, your lender may require you to buy separate flood coverage through the National Flood Insurance Program (NFIP). Even if your lender doesn’t require flood insurance, it’s a good idea to buy it separately to better protect your home.
How much homeowners insurance do you need in Alabama?
No state laws require homeowners to carry insurance. But your mortgage lender will probably require you to have a policy as a way to protect its investment in your home.[?]
If you have a mortgage you’ll generally need to buy enough home insurance coverage for at least the value of your mortgage. You may also need to buy a flood insurance policy if your home is in a flood plain.
Financial experts recommend insuring your home for the full cost of rebuilding it. Consider opting for replacement cost coverage if you can, since that’ll cover the full cost of replacing or repairing your home. Actual cash value coverage is cheaper, but it doesn’t cover the full cost to rebuild your home after you file a claim.[?]
It’s important to understand exactly what your home insurance policy covers before purchasing, so you know you have all the coverages you need.
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How to contact the Alabama Department of Insurance
The Alabama Department of Insurance regulates the insurance industry in the state. It also helps support homeowners through programs like Strengthen Alabama Homes and resolves disputes with insurers.
Here’s how to get in touch with the organization:
Email address: [email protected]
Phone number: 1 (334) 241-4141 or 1 (800) 433-3966
Mailing address: P.O. Box 303351, Montgomery, AL 36130-3351
Alabama homeowners insurance FAQs
If you’re shopping for home insurance in Alabama, the additional information below can help as you research your coverage options.
The average cost of Alabama home insurance is $2,988 per year for a policy with $300,000 in dwelling coverage, according to Insurify data. If you purchase add-on coverage, such as flood insurance, your costs will increase.
Allstate offers the most affordable homeowners insurance rates in Alabama, Insurify data shows. It charges an average of $142 per month.
No. Alabama doesn’t require homeowners to carry insurance. But most mortgage lenders require borrowers to have homeowners insurance policies. If you own your home outright, you aren’t required to insure your home. But keeping an active insurance policy is still important to make sure your finances are protected.
The best way to lower the cost of homeowners insurance is to shop around for coverage. Bundling multiple policies with the same insurance company, like life insurance and car insurance, can also help you lower your home insurance rates.
The average premium for a policy with $200,000 in dwelling coverage in Alabama is $186 per month, according to Insurify data. Your cost might vary based on other factors, like your claims history, deductible amount, home’s age, and personal property coverage.
Yes. Your home’s age can affect how much you pay for coverage. The older your home, the higher the cost of your homeowners insurance.
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