Home Insurance in Alabama

Alabama homeowners insurance: what you need to know

The average cost of home insurance in Alabama is $1,705 per year, or about $142 per month.  This is significantly higher than the national average. The best way to find affordable homeowners insurance in Alabama is to compare rates and see options from multiple companies.

There are major differences in home insurance rates on a state-by-state basis including Alabama. Policy prices in states may vary based on the total number and value of homeowners claims filed in that particular state, and depend on the value of the belongings and structures covered by the policy.

Check out average home insurance rates in Alabama via the below data.

 

Table of content:

1. Rates by company
2. Rates by coverage amount
3. Rates by deductible amount
4. Rates by city
5. Bundling savings
6. Frequently asked questions
7. Natural disaster coverage

 

The cheapest home insurance companies in Alabama

Farmers offers the cheapest homeowners insurance in Alabama, at only $604 per year. This compares favorably to the state average cost of $1,705, offering a $1,101 price cut on average statewide home insurance costs.

Get a head start on finding cheap homeowners insurance by reviewing the cheapest Alabama companies. Then, see our list of which home insurers ranked best for customer satisfaction. 

 

AFFORDABLE HOME INSURERS IN ALABAMA

Insurance Company	Average Yearly Rate in Alabama
Farmers	$604
Allstate	$1,207
Cincinnati Insurance	$1,318
MetLife	$1,605
USAA	$2,065

 

Alabama home insurance prices by coverage levels

How much you spend on home insurance coverage is greatly affected by the level of coverage you choose. Homeowners in Alabama who carry $100,000 of dwelling coverage pay an average of $1,082 per year, while those with dwelling coverage of $400,000 pay around $2,787 per year.

 

POPULAR COVERAGE LIMITS IN ALABAMA

Coverage Level	Average Annual Cost
$100,000 Dwelling	$1,082
$200,000 Dwelling	$1,705
$250,000 Dwelling	$1,962
$400,000 Dwelling	$2,787

 

Homeowners insurance deductibles in Alabama

Homeowners face a number of choices when buying a policy, including the amount of their deductible. A deductible is an amount for which you're responsible before the insurer will cover a claim. Your deductible level can have a major impact on how much you pay for insurance.

A good rule of thumb is the lower your deductible, the higher your premium. This means that those seeking lower insurance costs will want to seriously consider a higher homeowners deductible. Remember that your deductible should only be set as high as you can reasonably afford in the event of a covered loss.

The table below reveals the average rates associated with deductibles offered by most home insurers.

 

HOME INSURANCE PREMIUMS BY DEDUCTIBLE IN ALABAMA

Deductible Tier	Average Annual Homeowners Insurance Rate
$500	$2,104
$1,000	$1,962
$1,500	$1,889
$2,000	$1,769
$5,000	$1,537

 

Alabama homeowners insurance costs by city

Not every city in Alabama has equal home insurance costs. Policy pricing may depend on city-specific variables like the number of claims filed in the immediate area, meaning your specific ZIP code impact how much you pay.

The best home insurance in Alabama is found in Helena. The average homeowners insurance policy in Helena runs only $1,396 per year — $309 less than the average Alabama rate. Reference the below table to see the cheapest cities in Alabama for home insurance.

 

CHEAPEST CITIES FOR HOMEOWNERS INSURANCE IN ALABAMA

City	Average 12-Month Home Insurance Rate
Helena	$1,396
Alabaster	$1,421
Chelsea	$1,423
Maylene	$1,453
Montevallo	$1,475

 

Looking for insights on homeowners insurance in a specific city?

• Birmingham

 

Home and auto insurance bundling in Alabama

If you want to save on home insurance, consider purchasing both your car and home insurance policies from one company. Bundling auto and home insurance in Alabama can save you a substantial sum each month on car insurance. Bundling policies in Alabama leads to average annual savings of $150.

 

HOME AND AUTO BUNDLING DISCOUNTS IN ALABAMA

Avg. Annual Rate (No Bundle)	Avg. Annual Rate (w/ Bundle)	Annual Savings ($)	Annual Savings (%)
$1,370	$1,220	$150	12%

 

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Alabama homeowners insurance FAQs

 

Does GEICO offer homeowners insurance in Alabama?

Yes - GEICO offers homeowners insurance in Alabama.

Does homeowners insurance cover malicious prosecution in Alabama?

A standard policy would not cover malicious prosecution in Alabama. However, you can add this coverage via a personal injury endorsement.

 

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Natural disaster coverage in Alabama

 

Does homeowners insurance cover tornadoes in Alabama

A tornado can hit with precious little warning. There isn't much that you can do to get ready and the effects can be catastrophic. It's vital to insure your home against tornado damage in Alabama, which suffers an average of 47 tornadoes each year.*

Tornado damage comes primarily in the form of wind, so make sure your homeowners policy has windstorm protection, which comes standard with most home insurance policies.

Wind protection covers the exterior and overall structure of the building. Depending on your policy type, you may find that interior damage is only covered when it's caused by exterior damage, like a broken window. Detached structures are also covered, typically about 10% of the home’s insured amount. Bear in mind that certain damages brought about by the storm may not be covered. For example, if the storm that produced the tornado also causes flooding that damages your home, those damages won't be covered unless you have sought out flood coverage.

*Source: NOAA's National Weather Service

 

Does homeowners insurance cover hurricanes in Alabama

Since hurricanes can cause calamitous destruction and wipe out properties altogether, insurers are afraid to assume the risks posed by hurricanes. If you own a house in Alabama, you could be at a relatively high risk of suffering hurricane damage. In fact, 6,379 single-family homes are considered vulnerable to hurricane damage in Alabama.*

If you live in a coastal area, it's of utmost importance to check and understand your homeowners policy since a basic policy won't be sufficient to cover damage by hurricanes — you would need to bolster your policy with flood and windstorm insurance, both of which would be applicable to cover repairs or replacements. In some states, your insurance company may make it mandatory to have a separate hurricane deductible if you reside in a region that's especially susceptible.

*Source: Insurance Information Institute

 

HURRICANE DEDUCTIBLE RATES IN ALABAMA

Company	Average Annual Rate w/ Hurricane Endorsement
Cincinnati Insurance	$1,231
Centauri Specialty	$1,506
AAA	$1,564
Country	$1,776
USAA	$1,781

 

Does homeowners insurance cover flooding in Alabama?

Damage from flooding, whether from a windstorm or hurricane, is not covered by homeowners insurance policies. To insure your home against flood damage, buy insurance from a private flood insurance carrier or through the National Flood Insurance Program (NFIP).

Flood insurance coverage from private companies may vary, but if you buy through the NFIP you are allotted coverage for:

• $250,000 structural coverage
• $100,000 personal property coverage

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.

*Source: Federal Emergency Management Agency (FEMA)