Average homeowners insurance cost in Alabama

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Whether you’re a new homeowner or looking to buy insurance for your current home, securing the right homeowners’ insurance is crucial. Rates may vary depending on your insurance company and the coverage limits you choose.

According to Insure.com’s data analysis, the average cost of homeowners insurance in Alabama is $3,131 a year.

Continue reading to learn more about homeowners insurance rates in Alabama by ZIP code and insurer.

Key Takeaways

Homeowners insurance costs an average of $3,131 a year, based on Insure.com analysis.
Of all the ZIP codes in Alabama, 35124 has the most affordable home insurance rates at around $2,474 annually.
In Alabama, Allstate provides the most affordable home insurance at an average annual premium of $2,103.

Average home insurance cost in Alabama by coverage level

In Alabama, the annual homeowners insurance cost is $3,131, on average for the limits of $100,000 in liability, $300,000 in dwelling coverage and a $1000 deductible.

Increasing your dwelling coverage from $300,000 to $400,000 will raise your annual homeowners insurance premium to $3,852 in Alabama, with $100,000 in liability protection and a $1,000 deductible. Below are the average costs for homeowners insurance in Alabama based on dwelling coverage limits of $300,000, $400,000, and $500,000.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$2,378	$198
$200,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$2,391	$199
$300,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$3,131	$261
$300,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$3,147	$262
$400,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$3,852	$321
$400,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$3,872	$323
$600,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$5,470	$456
$600,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$5,499	$458
$1,000,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$8,699	$725
$1,000,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$8,742	$729

In Alabama, homeowners insurance companies set rates by assessing various risk factors. Your location, claims history, credit history and coverage limit all affect your premium.

If multiple claims have been filed in your neighborhood over the past few years, you’ll likely face higher home insurance rates than areas with fewer claims. Your credit score can also play a role in determining your home insurance costs.

According to S&P Global Market Intelligence’s RateWatch application, the average homeowners insurance premium for owner-occupied homes nationwide increased by over 11% in 2023.

Best homeowners insurance companies in Alabama

Before purchasing homeowners insurance, it’s important to compare rates and explore your options. Several factors play a role in choosing the best homeowners insurance company for your specific needs.

We evaluated insurance companies in Alabama based on their NAIC scores and AM Best ratings to create a list of the top homeowners insurance providers in the state. Our findings show that Auto-Owners received the lowest NAIC score and A++ rating from AM Best. A lower NAIC score indicates fewer complaints relative to the company’s size, suggesting higher customer satisfaction.

Company	Average annual premium	AM Best rating	NAIC Complaint Index	Overall score
Auto-Owners	$2,857	A++	0.33	5
Country Financial	$3,567	A+	0.26	4.47
Allstate	$2,103	A+	0.9	4.4
Farmers	$3,214	A	0.54	4.1
State Farm	$3,107	A++	0.95	3.53
Nationwide	$3,418	A+	0.87	3.34

Average homeowners insurance cost by company in Alabama

Allstate provides the most affordable homeowners insurance in Alabama, with an average annual premium of $2,103. Auto-Owners and State Farm also offer cheap home insurance rates.

Shopping around for homeowners insurance can help you save hundreds of dollars annually.

Here are the average annual and monthly insurance rates for homeowners in Alabama with a policy that provides $300,000 in dwelling coverage, $100,000 in liability protection, and a $1,000 deductible.

Company	Average annual rate	Average monthly rate
Allstate	$2,103	$175
Auto-Owners	$2,857	$238
State Farm	$3,107	$259
Farmers	$3,319	$277
Nationwide	$3,514	$293
Country Financial	$3,567	$297
Alfa Insurance	$3,793	$316
USAA*	$3,015	$251

*USAA is only available to military community members and their families.

Alabama homeowners insurance rates by ZIP code

Insurance companies in Alabama assess the risk associated with a specific location. ZIP codes prone to higher crime rates or frequent natural disasters are often classified as high-risk areas, which can lead to increased insurance premiums. The cost of rebuilding or repairing homes in a specific ZIP code can also impact how much you pay for a homeowners insurance policy.

Make sure you shop around and compare quotes from various insurance companies to get the best deal on homeowners insurance rates in Alabama. Don’t forget to ask about any available discounts, such as bundling policies or a smart home discount.

Most affordable ZIP codes for home insurance rates in Alabama

Not every area in Alabama has the same home insurance cost. How much you pay for homeowners insurance in Alabama depends on many factors, including your ZIP code. Our data shows that 35124 ZIP has low-cost home insurance rates in Alabama, at about $2,474 a year or $206 monthly.

Below you can find homeowners insurance rates for some of the most affordable ZIP codes in Alabama.

ZIP code	Average annual rate	Average monthly rate
35124	$2,474	$206
36832	$2,475	$206
36849	$2,478	$207
35043	$2,480	$207
35080	$2,486	$207
35114	$2,489	$207
36830	$2,491	$208
35007	$2,495	$208
36801	$2,502	$208
35242	$2,508	$209

Most expensive ZIP codes for home insurance rates in Alabama

Your ZIP code plays a significant role in determining the cost of your homeowners insurance. In Alabama, some areas face higher premiums due to factors like high crime rates, greater risk of natural disasters and higher living expenses.

In Alabama, 36528 has the highest homeowners insurance rates, at $10,573 per year.

Here, we’ve highlighted some of the most expensive ZIP codes in Alabama for homeowners insurance:

ZIP code	Average annual rate	Average monthly rate
36528	$10,573	$881
36561	$8,914	$743
36542	$8,585	$715
36523	$7,970	$664
36509	$7,069	$589
36532	$6,477	$540
36511	$6,430	$536
36605	$6,367	$531
36615	$6,336	$528
36582	$6,309	$526

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in Alabama by city

See rates in your city

Huntsville

Mobile

Tuscaloosa

Home insurance rate trend in Alabama

We analyzed home insurance rate trends in Alabama and found that homeowners insurance rates experienced an overall increase of 3% or $80, from 2022 to 2023.

The data below shows how much homeowners insurance rates have changed since 2019.

2019 rates	2022 rates	2023 rates
$2,960	$3,051	$3,131

To choose the right homeowners insurance, it’s important to conduct thorough research and compare rates from various insurers, as each evaluates risk differently. Comparing quotes from at least three companies can help you secure the most affordable coverage in Alabama.

Resources & methodology

Source

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed September 2024.

Methodology

Insure.com worked with Quadrant Information Service to get homeowners insurance data. We analyzed 20,739,560 insurance quotes from 82 national and regional insurance companies across 34,588 ZIP codes to determine the average premiums.

The insurance rates are based on a sample profile of a homeowner with good credit and the following coverage level:

$300,000 dwelling coverage
$100,000 liability protection
$1000 deductible

We have taken into account 3 important factors such as average annual cost, NAIC score and AM Best rating, to determine the list of best homeowners insurance companies. The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.