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Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
Updated
The average home insurance rate for $300,000 of coverage in Alabama is $296 per month, according to Compare.com data. Alabama is at risk of severe weather, including tornadoes, hurricanes, and flooding, which affects rates. Your personal rates can vary based on your ZIP code, age, and the insurer you choose.
The cheapest insurer in Alabama is Allstate. Its rates start at $178 per month for $300,000 of dwelling coverage.
We’ll tell you everything you need to know to find the best homeowners insurance in Alabama.
Homeowners insurance in Alabama averages $3,552 per year.
Alabama homeowners typically pay more than the national average for insurance.
Allstate, State Farm, and Centauri are some of the best home insurance companies in Alabama.
While no single insurer is best for everyone, Alabama has many quality home insurance companies. To help narrow your search, we’ve listed our top picks based on average rates, available discounts, customer reviews, and home coverage options offered in Alabama.
Company | Compare.com Rating | Average Monthly Premium |
|---|---|---|
| Allstate | 4.18 | $178 |
| State Farm | 4.38 | $274 |
| Centauri Insurance | N/A | N/A |
| Foremost | N/A | N/A |
| USAA | 4.68 | $290 |
Allstate is one of the largest insurance companies in the U.S. It offers a range of standard and optional home insurance coverages, including water backup, green improvement, and sporting equipment coverage. Alabama homeowners who purchase a newly constructed home may also qualify for a home-buyer discount.
Online quotes available
A+ (Superior) Financial Strength Rating
Below-average claims satisfaction
Extended replacement cost coverage not available
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.1 /5 |
|---|---|
| J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 643 |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $235/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $323/mo |
With Alabama’s risk of tornadoes and hurricanes, you may want to install an impact-resistant roof. State Farm offers roofing discounts for using Class 4 or hail-resistant shingles. Homeowners can also save by installing hurricane-resistant windows and by bundling home and auto insurance.
Above-average customer satisfaction
Customizable coverage
Below-average claims satisfaction
Low Truspilot score
Agents available 24/7
Accredited by the Better Business Bureau (BBB)
Online quotes not available
Difficult to find information on discounts
Centauri is a regional insurance company offering private flood insurance policies. It also has higher coverage limits for dwelling and contents, more deductible options, and no 30-day waiting period. Qualifying homeowners can also save with Centauri’s flood policy discount.
Local agents available
Specialized mobile home discounts
Online quotes take 2–3 business days
Low Trustpilot score
Foremost is a leader in mobile and manufactured home insurance, offering specialized policies for almost 70 years. The company has specialized mobile home discounts for homeowners aged 50 or older, newer mobile homes, and mobile homes located in an approved park.
USAA specializes in insurance for active-duty and retired military members and their families. With more than 55,000 military members in Alabama, many homeowners can benefit from USAA’s strong customer service.
It also offers a range of discounts, including bundling, protective services, and claims-free discounts. Plus, USAA waives the deductible for military gear and uniforms.
Online quotes available
Above-average claims satisfaction
Limited eligibility
Not accredited by the BBB
Get personalized home insurance quotes in minutes.
Home insurance premiums in Alabama can vary widely from one company to another. To find the best deal on coverage, compare home insurance quotes from multiple companies.
The following table highlights some of the cheapest home insurance companies in Alabama for $300,000 of dwelling coverage, according to Compare.com data.
Company | Average Yearly Premium |
|---|---|
| Allstate | $2,136 |
| Farmers | $2,700 |
| Encompass | $3,144 |
| State Farm | $3,288 |
| USAA | $3,480 |
| Foremost | $3,504 |
| Travelers | $3,696 |
| Nationwide | $3,972 |
| Auto-Owners | $4,008 |
| Country Financial | $4,248 |
| Alfa | $7,020 |
The cost of home insurance largely depends on the amount of coverage you need. Higher coverage limits typically come with higher premiums because your insurance company takes on more risk. You may want to add optional coverages for tornado, hurricane, and flooding damage, which can increase your premiums.
The table below shows the average premiums for various levels of dwelling coverage, according to Compare.com data.
Company | Average Yearly Premium |
|---|---|
| Allstate | $1,704 |
| Farmers | $1,932 |
| Foremost | $2,208 |
| Encompass | $2,520 |
| USAA | $2,568 |
| State Farm | $2,604 |
| Travelers | $2,640 |
| Nationwide | $2,916 |
| Auto-Owners | $3,096 |
| Country Financial | $3,312 |
| Alfa | $5,076 |
Company | Average Yearly Premium |
|---|---|
| Allstate | $2,136 |
| Farmers | $2,700 |
| Encompass | $3,144 |
| State Farm | $3,288 |
| USAA | $3,480 |
| Foremost | $3,504 |
| Travelers | $3,696 |
| Nationwide | $3,972 |
| Auto-Owners | $4,008 |
| Country Financial | $4,248 |
| Alfa | $7,020 |
Company | Average Yearly Premium |
|---|---|
| Allstate | $2,688 |
| Farmers | $3,576 |
| Encompass | $3,888 |
| State Farm | $3,900 |
| USAA | $4,332 |
| Travelers | $4,668 |
| Foremost | $4,848 |
| Auto-Owners | $4,980 |
| Nationwide | $5,028 |
| Country Financial | $5,268 |
| Alfa | $8,904 |
Company | Average Yearly Premium |
|---|---|
| Allstate | $3,264 |
| State Farm | $4,440 |
| Farmers | $4,488 |
| Encompass | $4,632 |
| USAA | $5,160 |
| Travelers | $5,796 |
| Auto-Owners | $5,940 |
| Nationwide | $6,108 |
| Foremost | $6,276 |
| Country Financial | $6,300 |
| Alfa | $10,776 |
Company | Average Yearly Premium |
|---|---|
| Allstate | $4,704 |
| State Farm | $5,688 |
| Encompass | $6,180 |
| Farmers | $6,972 |
| USAA | $7,104 |
| Auto-Owners | $8,040 |
| Travelers | $8,472 |
| Country Financial | $8,880 |
| Nationwide | $8,964 |
| Foremost | $9,168 |
| Alfa | $15,516 |
Home insurance premiums in Alabama also vary widely between cities. Different areas have varying risks, like natural disasters, theft rates, and proximity to a fire station.
This table shows average home insurance premiums for some of Alabama’s largest cities, based on our data.
City | Average Monthly Premium |
|---|---|
| Huntsville | $251 |
| Mobile | $484 |
| Birmingham | $257 |
| Montgomery | $251 |
Alabama homeowners are at risk of several natural disasters. Tornadoes, hurricanes, and flooding can all drive up premiums.
Alabama is located in an area with frequent tornadoes. While standard homeowner insurance covers tornado damage, you might have to pay a separate wind deductible.[1]
Coastal communities in Alabama near the Gulf of Mexico — like Mobile and Baldwin — are at high risk of hurricanes. You typically have to pay a separate home insurance deductible for hurricane damage.
Alabama experiences an average of 56 inches of rainfall each year. Homes on the coast are most susceptible to flash flooding and storm surges from hurricanes and tropical storms.[2] Standard homeowners insurance doesn’t cover flood damage. You can purchase separate flood insurance coverage from a private insurer or the National Flood Insurance Program (NFIP).[3]
Alabama’s Department of Insurance (ALDOI) regulates the state’s insurance industry and protects consumers. If you have insurance-related questions or complaints, you can reach ALDOI by phone at 1 (344) 241-4141 or 1 (800) 433-3966. You can also reach it via email at [email protected] or by mail at PO Box 303351, Montgomery, AL 36130-3351.
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Standard Alabama homeowners insurance includes the following coverage:
Dwelling coverage: Dwelling insurance helps pay for damage to your home and other structures, like a shed or detached garage.
Personal property coverage: Personal property insurance covers your belongings, such as clothing and furniture, and sporting equipment, if they are stolen or damaged.
Personal liability coverage: Personal liability insurance covers you if someone hurts themselves on your property. It also helps pay for damages you cause to someone else’s property.
Additional living expenses: Also known as loss of use coverage, most policies help pay for some of your living expenses, like hotels or restaurant bills, if you can’t stay in your home due to a covered event.
Medical payments: Medical payments coverage helps pay medical expenses if someone is injured on your property, regardless of fault. It doesn’t apply to you or family members living with you.[4]
In Alabama, a standard home insurance policy typically excludes the following:
Flooding: Most homeowners insurance polices exclude flood damage. You need to purchase separate flood coverage from a private insurer or the NFIP.
Sewer backup: Both standard homeowners policies and flood insurance won’t cover sewer backup. You need to purchase either a separate policy or an endorsement for your homeowners policy.
Earthquakes: To protect your home against damage from an earthquake, you need to purchase a separate policy or an endorsement for your current policy.
Maintenance damage: Your homeowner’s insurance won’t cover damage due to lack of maintenance, such as damage from mold or pest infestation.[1]
Flooding is a real risk to Alabama homeowners, and standard policies don’t cover flood damage. To properly protect your home, you can purchase a separate flood policy through a private insurance company. If you live in a participating community, you can also buy coverage through the NFIP.
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In addition to the cost of your home, several other factors influence home insurance premiums in Alabama, including:
The home itself: Your home’s age and building materials can affect your insurance premiums. Newer homes and brick houses typically cost less to insure than older homes with a wood frame.[5]
Your location: Living close to a fire hydrant or fire station can lower your premiums. Your home’s proximity to the coast can also impact your insurance costs.
How you structure your policy: The type of insurance you choose, extra coverage or endorsements, and your deductible affect your final premium.
Your background: Personal factors like your credit history and past claims can also affect your costs. Good credit and a clean claims history can lower your premiums.
Get rates from Alabama’s top home insurance companies and save money today.
Below, we answered the most common questions about Alabama home insurance.
The average cost of homeowners insurance in Alabama is $296 per month for $300,000 of dwelling coverage, according to Compare.com data. Insurance premiums in Alabama can vary based on many factors, including your location, your home’s age, and the deductible you choose.
It depends. Allstate, State Farm, and Centauri Insurance are some of the best home insurance companies in Alabama, according to Compare.com. That said, the best home insurance company depends on your needs and budget. Comparing quotes from multiple companies can help you find the right insurer.
$Allstate has the cheapest homeowners insurance policies in Alabama, according to Compare.com data. The company averages $178 per month for $300,000 of coverage.
Alabama’s risk of frequent severe weather is one of the main factors driving up homeowners insurance rates. The state regularly experiences tornadoes, flooding, and hurricanes, which cause major damage to homes.
A standard homeowners policy in Alabama typically covers your home’s structure, your personal belongings, and your personal injury liability. It also covers additional living expenses if you can’t live in your home due to a covered event. Carefully review your policy to understand covered losses and exclusions.
Comparing quotes from multiple insurance companies is one of the easiest ways to lower your home insurance costs in Alabama. You can also ask about discounts, maintain good credit, and increase your deductible. But if you raise your deductible, make sure you can cover the extra cost if you need to file a claim.
Standard homeowners insurance provides protection for your house and personal belongings, but typically not damage from flooding or hurricanes. You should consider adding flood or windstorm coverage due to the state’s frequent severe weather.
Compare.com data scientists analyzed rates from more than 180 home insurance companies sourced directly from Compare.com’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Additional data points beyond these default values are sourced from Compare.com’s proprietary database. Rates are updated monthly.
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Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
