Find the Best Homeowners Insurance Rates and Companies in Alabama

As a property owner in Alabama, you most likely want to purchase your homeowners insurance coverage from a reputable company and don’t want to overpay for it. The easiest way to ensure that you get excellent coverage at a reasonable price is by working with a local independent agent.

These agents can work with a variety of the area’s most highly rated insurers, so you can easily compare policies and rates before making a selection. Talk to an independent insurance agent near you to get started.

Best Homeowners Insurance Companies in Alabama

There are several homeowners insurance companies that write policies in Alabama. The company that is best for your neighbor isn’t necessarily the best for you. Several factors can influence your policy’s fine print and your calculated rates. That is why it pays to do comparison shopping.

Independent insurance agents in Alabama have established relationships with several of the state’s best insurers. These include companies like:

  • Travelers Insurance: Since 1963, Travelers has provided its customers with reliable coverage through its full line of insurance products.
  • Progressive: The convenience of state-of-the-art online services and an award-winning mobile app make this insurance company a top choice for homeowners in Alabama.
  • Stillwater Insurance Group: Talk to an agent to discover why 90% of Stillwater’s customers would recommend this insurer to their friends and family.
  • Safeco: A Liberty Mutual subsidiary, Safeco has been providing personal insurance coverage since 1923. Talk to an independent agent to learn more about how Safeco can protect your home and property.
  • Pure: Pure is a member-owned insurer that provides home insurance policies exclusively for high-net-worth individuals who own homes valued at $1 million or more.

Talk to an independent insurance agent in your Alabama city for help finding the Alabama homeowners company that offers you the best and most affordable coverage.

What Homeowners Insurance in Alabama Can Cover

If you own a house in Alabama, you can protect your finances by purchasing a homeowners insurance policy. In Alabama, home insurance can cover the following:

  • Loss or damage to your property: Dwelling insurance pays for loss or damage to the structure of your home, and contents insurance covers loss or damage to your personal property.  
  • Costs related to displacement: Loss of use insurance pays for extra living expenses if a covered event renders your home unsafe to live in until repairs are made.
  • Costs related to liability lawsuits: Homeowners liability insurance covers expenses related to liability lawsuits if you or a member of your household is sued.

Local independent insurance agents can help you be sure that you are buying sufficient coverage in each category.

What Homeowners Insurance in Alabama Does Not Cover

Homeowners insurance covers a lot, but it doesn’t cover everything. You should not expect your policy to pay for things like:

  • Normal wear and tear on your property
  • Damage to your vehicles
  • Damage caused by floods
  • Damage caused by acts of terrorism

Additionally, you can expect to have rather limited coverage for things like:

  • Business equipment if you work out of your home
  • Fine art and expensive jewelry
  • Boats, personal watercraft, ATVs, and other recreational vehicles

You can buy supplemental policies or special home insurance endorsements to fully cover this type of property. An independent insurance agent can help you get the coverage you need.

What Homeowners Should Know about Flood Damage in Alabama

As mentioned above, homeowners insurance policies specifically exclude coverage for floods. However, more than 400,000 properties in this state have a significant risk of sustaining flood damage over the next thirty years.

To be protected against financial losses related to this hazard, you can supplement your homeowners insurance coverage with flood insurance. Affordable policies are available through the National Flood Insurance Program (NFIP), a program administered by FEMA.

If your property is located in a flood zone and you are still paying on a mortgage, your lender will require you to carry flood insurance. Otherwise, this coverage is optional. When deciding whether or not to purchase a policy, keep in mind that the average compensation paid out per flood claim in Alabama is $32,100.

Average Cost of Homeowners Insurance in Alabama

Homeowners in Alabama pay an average of $1,433 a year for their home insurance coverage. Of course, this is just an average. Your actual rates can be significantly higher or lower than this amount based on factors like where your home is located, its size and value, and the amount of coverage you wish to purchase.

To find out how much a policy will cost you, you can request customized quotes from a local independent insurance agent.

Average Alabama Home Insurance Costs by City

National average burglary rate 3.76 per 1,000 people

National average home value $269,000

National average home insurance cost $1,428 year

CityAnnual insurance costAvg. home valueBurglaries / 1,000 homes
Ft. Payne$1,266$117,9215.86

Popular Questions about Alabama Home Insurance

On average, homeowners insurance premiums in Alabama are $1,433 per year. 

Residents of this state experience an average of 93 natural disasters annually. Based on where your house is located, this could impact your home insurance rates. The top losses in this state are due to tornadoes and severe storms that can cause major damage to your property. The only way to find out how much a policy will cost you is to request a customized quote. 

Every homeowners insurance policy in Alabama offers coverage for damage to the structure of your house, damage to other structures on your property, your personal property, your additional living expenses if your home is damaged in a covered event, and expenses related to personal liability lawsuits. 

Common exclusions under your home policy are floods, earthquakes, and terrorism. Some of these exclusions can be added back in for an additional premium, or a separate policy can be purchased. 

In Alabama, homeowners insurance is not required by law when you own a property. However, it is required if you have a mortgage or a loan out against your home. Though it can be optional, homeowners insurance may be necessary to avoid financial ruin. 

Consider this: In one recent year, insurance companies in Alabama paid out $670,506,000 in home insurance claims to residents of this state. 

Homeowners insurance rates can vary significantly from one person to the next because they are calculated according to several factors such as:

  • Your city’s proximity to the Gulf Coast
  • Your home’s size, age, and rebuild value
  • The amount of property and liability coverage you want to purchase
  • Your claims history and credit score
  • The crime rate and weather risks in your ZIP Code
  • Whether you qualify for any offered homeowners insurance discounts

Every insurance company has its own way of assessing risk and calculating rates. Independent insurance agents can request customized quotes from multiple insurance carriers so you can be sure that whatever policy you choose is offered at a reasonable price.

Your Alabama homeowners insurance policy rates can be impacted by claims that are filed as a result of natural disasters in your area. Some of the most common damaging events in Alabama include:

  • Windstorms
  • Thunderstorms
  • Hurricanes and tropical storms
  • Hailstorms
  • Floods
  • Accidental fires

To best protect yourself from financial losses related to these hazards, consider reviewing your current home policy to identify and remedy any gaps in coverage.

The company that offers the best homeowners insurance rates will be based on your unique situation. In Alabama, some of the companies that offer the best value include Travelers, Progressive, Stillwater, Safeco, and Pure. To find which carrier best suits your coverage and budgetary needs, you can work with an independent insurance agent near you.

Do you know what your home insurance covers in Alabama?

Average Cost of Home Insurance Near You

Homeowners in Mobile, AL pay an average of $129 per month for their home insurance coverage. This city is no stranger to natural disasters, with an average of 23 per year. This is nearly double the national average. The higher chances of water damage, wind damage, or fires from lightning can cause a spike in your home insurance premium. Fortunately, with average home values that are lower than in most of the state, insurance costs in this city are not unmanageable.

Mobile, AL has a high crime rate, with significantly more burglaries than the national average. If your home is targeted by a robber, it can be traumatic, but your home insurance will cover the cost of damage and pay to replace any stolen valuables.

The average monthly cost of home insurance in Daphne, AL is $132. Home insurance prices are higher than in some areas because of the increased risk of property damage due to natural disasters and because, on average, homes are considerably more expensive in this city than throughout most of the state. Fortunately, the burglary rate in this city is low, and that helps to keep costs for coverage affordable.

Heavy rains and serious storms can lead to roof damage over time. A leak in the roof could cause major water damage inside your home. Fortunately, your home insurance policy will cover the cost of repairs if you file a claim for water damage in Daphne, AL. 

Residents of Montgomery, AL pay an average of $107 per month for their homeowners insurance. Your home insurance premium will largely depend on the risks you face as a homeowner. In Montgomery, AL, severe storms often cause damage to homes, with fires sparked by lightning or wind damage to roofs. Ultimately, your rate will be determined by these risks along with the size and age of your home, your credit score, and a few other variables. Because house values in this city are lower than the state average, so too are insurance costs.

Montgomery's crime rate is well above the national average, meaning home invasions and burglaries are a frequent concern. If your home is burglarized, be sure to contact the authorities and get a copy of the police report. You can then file a claim and get the money you need to repair any property damage and replace the items that were stolen. 

The average monthly cost of home insurance in Auburn, AL is $124. This is one of the highest rates in the state, mainly because of the high property values in this city. Though the crime rate is low, Auburn homeowners have to deal with ongoing threats from serious storm systems. Depending on where you live in the city, and your individualized risk factor, these threats could cause a spike in your home insurance rates. Other factors that influence your premium will be your credit score, your previous claims, and information about the age and structure of your home. 

Auburn, AL home insurance is designed to cover several potential hazards. If you experience a fire resulting from an electrical spark, it can be terrifying. Once the fire department arrives and puts out the flames, you'll have to assess the damage. While it's heartbreaking to go through a home fire, your home insurance plan offers protection and will cover the cost of repairs or rebuilding after this kind of catastrophe.