The Best and Cheapest Homeowners Insurance Companies in Alabama
Farmers has the best price for home insurance coverage in Alabama, at $807 per year.
Compare Home Insurance Quotes from Companies in Alabama
Best cheap home insurance in Alabama
ValuePenguin collected thousands of quotes across hundreds of ZIP codes from Alabama's top home insurance companies. Our experts compared cost, customer service, reliability and coverage benefits to find the best insurance companies in AL.
See the full methodology.
Cheapest homeowners insurance companies in Alabama
Farmers offers the cheapest quote for home insurance in Alabama, with an average rate of $807 per year for $350,000 in dwelling coverage. That’s 70% cheaper than the state average.
The average cost of home insurance in Alabama is $2,716 per year.
Compare Home Insurance Quotes from Companies in Alabama
Cheap annual home insurance in Alabama
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| Farmers | $527 | |
| Allstate | $765 | |
| USAA | $1,495 | |
| Cincinnati | $1,513 | |
| State Farm | $1,794 | |
$200,000
Company | Annual rate | ||
|---|---|---|---|
|
| Farmers | $527 | |
|
| Allstate | $765 | |
|
| USAA | $1,495 | |
|
| Cincinnati | $1,513 | |
|
| State Farm | $1,794 | |
$350,000
Company | Annual rate | ||
|---|---|---|---|
|
| Farmers | $807 | |
|
| Allstate | $1,009 | |
|
| USAA | $2,087 | |
|
| Cincinnati | $2,470 | |
|
| State Farm | $2,511 | |
$500,000
Company | Annual rate | ||
|---|---|---|---|
|
| Farmers | $1,275 | |
|
| Allstate | $1,424 | |
|
| USAA | $2,668 | |
|
| State Farm | $3,143 | |
|
| Cincinnati | $3,474 | |
$1 million
Company | Annual rate | ||
|---|---|---|---|
|
| Farmers | $2,427 | |
|
| Allstate | $2,866 | |
|
| USAA | $4,545 | |
|
| State Farm | $4,910 | |
|
| Cincinnati | $6,367 | |
The most expensive homeowners insurance company is Travelers, where coverage can cost more than $4,688 per year for $350,000 in dwelling coverage.
What home insurance do I need in AL?
Hurricanes and other coastal storms are the most common sources of severe damage Alabama homeowners face, especially for people who live in Mobile or near the gulf.
Generally, home insurance covers damage from windstorms, but damage from flooding is usually not covered. People who live in high-risk areas should buy flood insurance, either from their home insurance company or another provider.
Best home insurance in AL for cheap rates: Farmers
-
Editor rating
-
Cost: $807/yr
Farmers’ average cost of home insurance is about $807 per year — 70% cheaper than Alabama's statewide annual average.
Pros:
-
Cheapest prices in Alabama
-
Customizable policies
-
Multiple discounts offered
Cons:
-
Poorly rated customer service
-
Expensive option for bundling
The most affordable homeowners insurance company for most people in Alabama is Farmers. It offers prices that beat other insurers in the state and covers standard risks that are most likely to affect typical homeowners. These include fire, storms and theft, as well as liability coverage — which protects you if someone is injured on your property.
Farmers has lots of great discounts that can make your policy even cheaper,too.
For example, Farmers offers a fortified home discount specifically for Alabama policyholders whose houses have added protections from severe weather.
However, Farmers' customer service is poorly rated. It receives 68% more complaints than a typical home insurance company, suggesting customers are more likely to be unhappy with the service they receive. It also performed slightly below average in J.D. Power's annual customer satisfaction survey.
Another downside is Farmers' inconsistent online quote tool. Farmers doesn't offer quotes online for everyone. You might need to call an agent to get a quote or finalize signing up for your policy.
Best Alabama home insurance for hurricane coverage: Allstate
-
Editor's rating
- Cost: $1,009/yr
Allstate offers customizable hurricane coverage to Alabama homeowners.
Pros:
-
Cheap rates
-
Customizable flood insurance
-
Easy access online or with a local agent
Cons:
-
Few coverage perks included by default
-
Expensive option for bundling
Allstate has great coverage for hurricane and severe storm damage in Florida. Its rates are also nearly 63% cheaper than the average cost of home insurance policies in Alabama.
Most importantly, Allstate offers both standard NFIP flood insurance, and a more customizable flood insurance through its Beyond Floods subsidiary. Private flood insurance offers higher coverage limits, a shorter waiting period and possibly cheaper rates than an NFIP-backed policy.
Allstate is also the second-largest home insurer in the U.S.
That means it's extremely stable financially and unlikely to struggle with paying claims after a big storm.
While Allstate does offer several coverage add-ons, a basic policy doesn't include many coverage options by default. You'll have to pay extra for add-ons like identity theft or water backup, which are included at no extra cost from some home insurance companies.
Best for great customer service in Alabama: State Farm
-
Editor's rating
- Cost: $2,511/yr
State Farm has top-rated service among Alabama home insurance companies.
Pros:
-
Excellent customer service
-
Convenient access to in-person and online support
-
Good for bundling with auto insurance
Cons:
-
Rates are average
State Farm is the best home insurance option in Alabama for great customer service. It consistently gets positive ratings from customers in J.D. Power's home insurance survey, and receives fewer complaints than an average company, according to the National Association of Insurance Commissioners (NAIC).
Filing a claim with State Farm is simple and fast. You can file claims in as little as 10 minutes using the user-friendly app or website, or by calling in.
State Farm is a great choice if you want to bundle home and auto insurance together.
The company has competitive auto rates in Alabama, and signing up for both policies at once is straightforward.
The main downside to State Farm is the cost. State Farm’s average rate is $2,511 per year. That's more than triple the price of Farmers, the cheapest option.
Best homeowners insurance companies in Alabama
The companies with the best customer service are State Farm, USAA and Cincinnati Financial.
USAA has the best rating overall but is only available to people affiliated with the military.
Alfa is also worth considering — it receives very few complaints about its home coverage and could be a good fit if you prefer a smaller local company.
Company |
Rating
|
Complaints
|
|---|---|---|
| USAA | Low | |
| State Farm | Average | |
| Cincinnati | Low | |
| Auto-Owners | Low | |
| Alfa | Low |
To compare the customer service of Alabama's homeowners insurance companies, we used complaint data reported by the NAIC and J.D. Power's customer satisfaction survey.
Average home insurance cost in Alabama
The average cost of homeowners insurance in Alabama is $2,716 per year for a policy with $350,000 of dwelling coverage.
That's 26% more expensive than the national average of $2,151 per year.
Average cost of home insurance in AL by dwelling coverage amount
Dwelling coverage | Annual cost |
|---|---|
| $200,000 | $1,831 |
| $350,000 | $2,716 |
| $500,000 | $3,630 |
| $1,000,000 | $6,914 |
Alabama has more expensive homeowners insurance because it's on the Gulf Coast. Home insurance prices in Alabama are 23% higher than in Georgia, but still cheaper than in Florida or Mississippi.
Alabama insurance rates by city
The most expensive city in Alabama for homeowners insurance is Dauphin Island in the Gulf of Mexico.
There, an average policy costs $11,032 per year. The cheapest city for homeowners insurance is Fort Novosel, where it costs only $402 per year.
Cost of AL home insurance by city
City | Annual rate | % from avg. |
|---|---|---|
| Abbeville | $2,429 | -11% |
| Abernant | $3,417 | 26% |
| Adamsville | $2,452 | -10% |
| Adger | $2,527 | -7% |
| Akron | $2,650 | -2% |
Rates are for a policy with $350,000 of dwelling coverage.
Most common natural disasters in Alabama
Alabama homeowners can experience frequent, devastating severe weather, thanks to the state's location along the Gulf of Mexico and in Dixie Alley, where tornadoes are common.
While most homeowners insurance policies offer protection against wind damage and lightning strikes, your policy may limit your coverage. To be sure your home would be protected if you experienced a loss, it's smart to understand how your homeowners insurance treats common disasters.
Is wind damage covered by AL homeowners insurance?
Wind damage is usually covered by your homeowners insurance policy. This includes gusts, plus wind from tornadoes or hurricanes. Alabama experienced 70 tornadoes in 2023, according to the National Weather Service.
If you live in a tornado-prone area, it's worth purchasing replacement cost coverage if you can. Tornadoes commonly cause widespread damage, so replacement cost coverage ensures you'll receive a payout that fully covers the cost of repairs.
If you're in a coastal part of the state that's susceptible to hurricanes, you may have to consider flood insurance, too. Although home insurance policies cover a hurricane's wind damage, flood damage is almost never covered. Allstate has the best private flood insurance in Alabama, and the National Flood Insurance Program (NFIP) also sells flood policies.
Does homeowners insurance in Alabama cover lightning?
Lightning strikes are prevalent in Alabama. There have been 38 lightning storms that caused injuries or property damage in the last five years, according to reports by the National Oceanic and Atmospheric Administration (NOAA). Most homeowners insurance policies include lightning strikes as a covered peril. In fact, your policy may provide protection from several different kinds of lightning damage.
- Direct strikes
- Near misses that still damage property
- Falling trees damaged by lightning
- Fires set by lightning
- Power failures caused by strikes to the ground
How to get cheaper home insurance in Alabama
There are three main ways to get cheaper home insurance in Alabama: compare quotes, qualify for discounts and adjust your coverage.
Compare rates from multiple companies to find the cheapest home insurance available.
The cheapest home insurance in Alabama is nearly six times less expensive than the most expensive option. That's why it's important to shop around for quotes every year or two.
Most home insurance companies offer at least a few discounts to help you save on home insurance.
You'll typically get the largest discount for bundling your home insurance with a cheap auto insurance policy in Alabama. Some companies also offer discounts for military members, government employees or retirees.
If you live in a part of the state prone to hurricanes and tropical storms, you can get discounts by storm proofing your house — you can add storm shutters on your windows, or reinforce your roof.
You can usually lower your home insurance rates by raising your deductible or lowering your coverage limits.
A higher deductible means the insurance company will pay you less money to fix your damaged home. It's important to choose a deductible you can easily pay in an emergency.
You can also lower your coverage limits and get rid of any coverage extras you may not need. However, make sure your limits are high enough to cover the cost of rebuilding your home and replacing your belongings if you have a major accident.
Frequently asked questions
How much is homeowners insurance in Alabama?
The average cost of homeowners insurance in Alabama is $2,716 per year. That's 26% higher than the national average of $2,151 per year.
Who has the cheapest homeowners insurance in Alabama?
Farmers offers the cheapest home insurance in Alabama. The company’s average rate of $807 per year is 70% cheaper than the state average.
Who has the best hurricane insurance in Alabama?
Allstate has the best hurricane insurance in Alabama. It allows customers to combine wind and flood claims under a single deductible, which could save you hundreds when making a claim.
Methodology
To find the best insurance in Alabama, ValuePenguin gathered quotes in every ZIP code in the state from the largest homeowners insurance companies. ValuePenguin sourced quotes for properties at four levels of dwelling coverage to understand the cost of coverage for a variety of homes.
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will be different.
Each company's customer service was ranked by comparing the National Association of Insurance Commissioners (NAIC) complaint index, J.D. Power's home insurance customer satisfaction rankings and ValuePenguin editor's ratings
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.