Updated: October 21, 2025
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The average cost of homeowners insurance in Alabama in 2024 is $4,123. Beyond coverage amount, credit rating has the largest impact on premiums, with the difference reaching $17,540 on average.
If your rates have recently increased, the cheapest policies in Alabama may offer more affordable options. The insurance provider also affects premium costs.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Oct 24, 2025
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Table of Contents
We gathered quotes from eight major insurance providers across 11 Alabama ZIP codes, analyzing over 1.2 million quotes to calculate what homeowners actually pay based on their specific circumstances.
These rates reflect the average cost of home insurance in Alabama as of 2024.
The average cost of homeowners insurance in Alabama is $4,123 for policies with $250K Dwelling / $125K Personal Property / $200K Liability coverage. This is $1,700 more than the national average.
Choosing how much coverage you need is important. It should cover the full cost to rebuild your home and replace personal belongings. Coverage also needs to account for other structures, liability and living expenses if your home is uninhabitable.
| $100K Dwelling / $50K Personal Property / $100K Liability | $2,496 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $4,123 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $6,512 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $9,277 |
Premiums for homeowners insurance in Alabama vary among providers for comparable coverage. USAA offers a policy at $2,752 annually, while Travelers' similar policy costs $10,671, showing the range in pricing.
There are plenty of great providers in Alabama. Differences in underwriting lead to substantial variations in premiums, so compare options.
| USAA | $2,752 |
| Auto-Owners Insurance | $2,956 |
| State Farm | $3,048 |
| Allstate | $3,117 |
| Farmers | $3,187 |
| COUNTRY Financial | $3,440 |
| Nationwide | $3,813 |
| Travelers | $10,671 |
Homeowners in Alabama with excellent credit pay an average annual premium of $2,381 for homeowners insurance, $1,742 less than the state average. Those with poor credit face an average cost of $19,921, $15,798 above the average. Credit scores directly impact insurance rates, as insurers consider higher credit scores lower risk.
You can't improve your credit score immediately, but working on it over time can lower your insurance rates. Compare insurers to find the best rates. You can see which insurer offers the best savings in less than 15 minutes.
| Poor | $19,921 |
| Below Fair | $10,293 |
| Fair | $6,363 |
| Good | $4,123 |
| Excellent | $2,381 |
Your roof type affects insurance premiums. Materials impact costs due to their durability and damage resistance. In Alabama, homes with tile roofs have lower insurance premiums, averaging $4,049. Shake-treated roofs have higher premiums, averaging $4,308, because they're more susceptible to severe weather damage.
Your home's construction type also impacts insurance costs. Materials more resistant to common perils like fire mean lower premiums. Homes in Alabama with superior construction types have an average insurance cost of $3,817, while those with standard frame construction have an average cost of $4,123.
The drop-downs in the table show how premiums change based on your home's materials.
| $100K Dwelling / $50K Personal Property / $100K Liability | $2,496 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $4,123 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $6,512 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $9,277 |
| $1M Dwelling / $500K Personal Property / $1M Liability | $12,411 |
Home insurance for new construction in Alabama costs less than insuring an existing home. The average annual premium for a newly built home is $2,235, $1,888 below the average for an older home. The table shows how premiums vary between new and existing homes to help you find the right coverage level.
| Existing Construction (2000) | $4,123 |
| New Construction (2023) | $2,235 |
In Alabama, homeowners with a claim-free record for over five years pay an average annual premium of $4,123. Those with one claim within the past five years see an average increase to $4,960, while two claims raise the average premium to $5,459. Claims history impacts insurance costs, with premiums rising as claims accumulate within a five-year window.
| Claim free for 5+ years | $4,123 |
| 1 claim in past 5 years | $4,960 |
| 2 claims in past 5 years | $5,459 |
In Alabama, hurricanes and tornadoes are the biggest natural disasters, but a homeowners policy may not fully cover hurricane damage. Floods aren't covered by homeowners insurance, so you'll need separate flood insurance.
Premiums in the cities we analyzed range from $3,296 to $5,702. Birmingham's annual premium is about $3,692, while Huntsville's is $3,541. Mobile's premium jumps to $5,702. Location impacts insurance costs due to crime rates, weather patterns and local construction costs. Cities prone to severe weather may have higher premiums, but credit rating and claims history also influence rates.
| Birmingham | $3,692 |
| Huntsville | $3,541 |
| Mobile | $5,702 |
| Montgomery | $3,296 |
Shopping for home insurance in Alabama doesn't have to be hard. Here's how to find the best deal.
Ask about bundles and discounts to lower your premium.
Check the company's claims experience and customer service.
Choose a deductible that fits your financial situation.
Purchase the policy that offers the best value for you.
In Alabama, homeowners can save an average of 15% by bundling their home and auto insurance policies. This strategy leads to average savings of up to $891 on the combined cost of both insurance types. For detailed insights into the best and cheapest home and auto bundle companies in Alabama, explore our comprehensive bundle analysis.
In Alabama, homeowners can cut insurance costs with various discounts. To maximize savings, ask about discounts when getting a quote. Here are three:
You can also save with discounts.
USAA offers the lowest average premium at $2,752. Other cheap national providers are available.
Homeowners insurance covers wind damage but excludes floods. For hurricanes, you may need additional coverage. Buy flood insurance through the National Flood Insurance Program or a private flood insurer. Some home insurers offer it as an endorsement.
Credit rating has the most significant impact, with a potential difference of $17,540 between excellent and poor credit.
Bundling saves up to $891 on average. Learn more about home and auto bundles in Alabama.
Use the curated links below to learn more about homeowners insurance in Alabama.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
