Average homeowners insurance cost in Alabama

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Whether you’re buying a new home or want to protect the property you currently own, it’s important to have sufficient homeowners insurance coverage in place. However, home insurance policies can get expensive, depending on your insurer and the coverage level you choose.

On average, Alabama homeowners insurance costs $3,131 a year, based on Insure.com’s data.

Learn more about the average homeowners insurance rates by company and ZIP code in Alabama.

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

Homeowners insurance costs $3,131 a year in Alabama for the coverage limits of $300,000 dwelling coverage and $100,000 liability with a $1,000 deductible.

If you raise the dwelling coverage limit from $300,000 to $400,000, the cost of homeowners insurance in Alabama will increase to $3,852 per year for $100,000 in liability protection and a $1,000 deductible. Below, you’ll find the average cost of homeowners insurance in Alabama for 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

Homeowners insurance companies in Alabama determine rates based on risk factors. When calculating premiums, they consider your location, claims history, credit history and coverage limits.

If your neighborhood has experienced many claims in the last few years, you can expect to pay higher home insurance rates than areas with few to no 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 offers the most affordable homeowners insurance in Alabama, at an average annual premium of $2,103, followed by Auto-Owners and State Farm.

You can save hundreds — if not thousands — of dollars each year if you shop around for homeowners insurance.

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

In Alabama, insurance companies evaluate the risk associated with specific locations to determine premiums. ZIP codes with higher crime rates or a history of natural disasters are often considered high-risk, resulting in higher insurance premiums. Additionally, the cost of rebuilding or repairing homes in a particular ZIP code can influence your price for a homeowners insurance policy.

Shop around and compare quotes from different insurance companies to find the best home insurance rates in Alabama. Also, remember to inquire about any discounts, such as bundling policies or smart home discounts, to help lower your premium.

Most affordable ZIP codes for home insurance rates in Alabama

Homeowners insurance costs in Alabama can vary widely by location, with your ZIP code being a key factor in determining your rate. Based on our data, the the 35124 area has the most affordable insurance rates, at $2,474 annually or $206 monthly.

Below are the homeowners insurance rates for 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 following data highlights the changes in homeowners insurance rates since 2019.

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

Finding the right homeowners insurance requires thorough research and comparing rates from different insurers, as each has its own way of assessing risk. By gathering quotes from at least three companies, you can increase your chances of getting 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.