The Best and Cheapest Homeowners Insurance Companies in Alabama

The Best and Cheapest Homeowners Insurance Companies in Alabama

Compare Home Insurance Quotes from Companies in Alabama

Currently insured?
It's free, simple and secure.

The best price for home insurance coverage in Alabama is from Farmers, at $817 per year. To help Alabama homeowners get the best possible coverage, we collected hundreds of quotes and evaluated customer satisfaction ratings for Alabama’s best insurance companies. The average cost of homeowners insurance in Alabama is about $2,089 per year, which is more expensive than the average cost of home insurance across the U.S., which is $1,516 per year.

Best cheap home insurance in Alabama

Cheapest homeowners insurance companies in Alabama

Farmers offers the cheapest quote for home insurance in Alabama, with an average of $817 per year, or $68 per month. That’s $1,272 cheaper than the state average of $2,089 per year.

The cheapest homeowners insurance for most people in Alabama comes from Farmers, which has coverage for about $817 per year.

The graph shows which companies are the cheapest for home insurance in Alabama

Compare Home Insurance Quotes from Companies in Alabama

Currently insured?
It's free, simple and secure.
Insurer
Average annual cost
Farmers logo
Farmers$817
Allstate logo
Allstate$924
Cincinnati Insurance logo
Cincinnati Financial$1,656
State Farm logo
State Farm$1,984
Travelers logo
Travelers$2,307
Show All Rows

The most expensive homeowners insurance company is Auto-Owners Insurance, where coverage can cost over $3,500 per year.

Best home insurance for most people: Farmers

Farmers offers plenty of customization options for your home insurance policy at the cheapest rate.
{"bannerDisclaimers":[],"buttonColor":"primary","buttonIcon":"lock","buttonText":"Get a Quote","category":"auto_insurance_companies","cloudinaryImageName":"referral_logos\/us\/insurance\/farmers-3","description":" Farmers offers plenty of customization options for your home insurance policy at the cheapest rate.","details":[],"disclaimer":"","featuredTitle":"","link":"https:\/\/www.farmers.com\/","name":"Farmers","hideBanner":false,"hideDescription":false,"hideDetails":true,"hideDisclaimer":false,"hideTitle":true,"title":"Farmers"}

The good:

  • Customized policies
  • Multiple discounts offered
  • Cheapest average rate

The bad:

  • Can be expensive with added endorsements

The best homeowners insurance company for most people in Alabama is Farmers. A standard home insurance policy from Farmers is the cheapest for most people and covers standard risks that could affect typical homeowners, such as fire, storms and theft.

Farmers’ average cost of home insurance is about $817 per year — nearly 61% cheaper than Alabama's statewide annual average.

In addition to Farmers’ basic offerings, you can also receive unique discounts depending on your policy and residence. For example, Farmers offers a fortified home discount specifically for Alabama policyholders whose houses have added protections from severe weather.

Farmers also boasts high customer satisfaction scores based on data reported by the National Association of Insurance Commissioners (NAIC). Farmers scored a 0.57 compared to an average national index of 1.00, meaning that Farmers received 43% fewer complaints than expected based on its size.

One downside is Farmers' 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 home insurance for hurricane coverage: Allstate

Allstate offers the cheapest home insurance rates for hurricane and severe storm damage coverage.
{"bannerDisclaimers":[],"buttonColor":"primary","buttonIcon":"lock","buttonText":"Get a Quote","category":"auto_insurance_companies","cloudinaryImageName":"referral_logos\/us\/insurance\/allstate-3","description":" Allstate offers the cheapest home insurance rates for hurricane and severe storm damage coverage.","details":[],"disclaimer":"","featuredTitle":"","link":"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.allstate.com\/auto-insurance.aspx&carrier=Allstate;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA","name":"Allstate","hideBanner":false,"hideDescription":false,"hideDetails":true,"hideDisclaimer":false,"hideTitle":true,"title":"Allstate"}

The good:

  • Cheap rates for severe weather damage
  • Easy access online or with a local agent

The bad:

  • Few coverage add-ons included by default

The most affordable home insurance policy in Alabama for hurricane and severe storm damage comes from Allstate, which sells policies for an average price of about $2,078 per year. This is nearly 12% cheaper than the average cost of severe storm insurance policies in Alabama.

Since there is no standard "hurricane insurance," Allstate can combine both wind and water damage policies to cover damage from hurricanes at the cheapest rate. Allstate is also the second-largest home insurer in the U.S., meaning you get easy access to personalized quotes online or through a network of over 12,000 local insurance agents nationwide.

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 customer satisfaction: State Farm

State Farm’s low rate of customer complaints indicates it's serving its customers well.
{"bannerDisclaimers":[],"buttonColor":"primary","buttonIcon":"lock","buttonText":"Get a Quote","category":"auto_insurance_companies","cloudinaryImageName":"referral_logos\/us\/insurance\/statefarm-2","description":" State Farm\u2019s low rate of customer complaints indicates it's serving its customers well.","details":[],"disclaimer":"","featuredTitle":"","link":"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.statefarm.com\/insurance\/auto&carrier=State%20Farm;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA","name":"State Farm","hideBanner":false,"hideDescription":false,"hideDetails":true,"hideDisclaimer":false,"hideTitle":true,"title":"State Farm"}

The good:

  • Excellent customer service
  • Convenient access to in-person and online support

The bad:

  • Higher rates

State Farm is the best home insurance option in Alabama for customer satisfaction. The company has a complaint index of 0.74 from the NAIC, meaning it receives 26% fewer complaints than most insurers of its size.

Filing a claim with State Farm is as simple as clicking a button. You can file claims in as little as 10 minutes online using the user-friendly app or website or by calling support or a local agent.

The main downside to State Farm is the cost. If you're looking for the cheapest insurance option regardless of customer service or convenience, then State Farm might not be for you. State Farm’s average annual rate is $1,984 per year, which is more than twice as expensive as Farmers' rate of $817 per year.

Best homeowners insurance companies in Alabama

The companies with the best customer service are Cincinnati Financial, USAA and State Farm.

Alfa received no complaints through the NAIC about its home coverage and is worth considering if you prefer a smaller local company.

Company
Rating
Cincinnati Financial
USAA
Auto-Owners
Alfa
Nationwide
State Farm
Country Financial
Farmers
Allstate
Travelers

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.

Alabama insurance rates: City-by-city breakdown

The most expensive city in Alabama for homeowners insurance is Montrose, where coverage costs an average of $3,421 per year. The cheapest city for homeowners insurance is Brook Highland, where it costs only $1,475 per year.

The average cost of home insurance in Alabama is $2,089 per year.

City
Average cost
Difference from state average
Abbeville$1,847-12%
Abernant$2,56123%
Adamsville$1,908-9%
Adger$1,991-5%
Akron$2,057-2%
Show All Rows

Most common homeowners insurance risks in Alabama: Tornadoes, hurricanes, lightning

Alabama homeowners can experience frequent, devastating severe weather, thanks to the state's location along the Gulf of Mexico and in Dixie Alley, a circuit of states that has storm activity comparable to the well-known Tornado Alley.

While most homeowners insurance policies offer protection against wind damage and lightning strikes, there may be provisions in your policy that limit your coverage. To be sure your home would be protected if you experienced a property loss, it's good to understand how your homeowners insurance treats the perils you're most exposed to.

Is wind damage covered by homeowners insurance?

Wind damage is usually included as an insured peril in your homeowners insurance policy. This coverage applies to gusts, as well as wind from tornadoes and hurricanes. Alabama experienced 67 tornadoes in 2021, according to the National Weather Service. You should also consider purchasing replacement cost coverage if it's available in your area because if your home or possessions are damaged by severe weather, they will be repaired or replaced without deductions for depreciation.

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 cover lightning?

Lightning strikes are prevalent in Alabama, according to reports by the National Oceanic and Atmospheric Administration (NOAA). Most homeowners insurance policies list lightning strikes as covered perils. In fact, your policy may provide protection from:

  • 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

Frequently asked questions

How much is homeowners insurance in Alabama?

The average cost of homeowners insurance in Alabama is $2,089 per year, or $174 per month. That's 24% higher than the national average of $1,516 per year.

Who has the cheapest homeowners insurance in Alabama?

Farmers offers the cheapest home insurance in Alabama. The company’s average rate of $817 per year is 61% cheaper than the state average.

Who has the best hurricane insurance in Alabama?

Allstate has the best hurricane insurance in Alabama. Its annual rate for combined wind and flood insurance is $2,078, which is 12% cheaper than the state average of $2,365.

Methodology

We gathered quotes in every ZIP code in the state from Alabama's largest homeowners insurance companies. We sourced quotes for a $229,700 property built in 1977, to represent the median home age and value in Alabama.

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.

We ranked each company's customer service scores by comparing the National Association of Insurance Commissioners (NAIC) complaint index, J.D. Power's home insurance customer satisfaction rankings and our 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.