Average Cost of Homeowners Insurance in Alabama (2024)


The average cost of homeowners insurance in Alabama in 2024 is $4,123. This rate is $1,700 higher than the national average of $2,423. Aside from the amount of coverage you get, credit rating has the largest impact on premiums, with the difference in premiums reaching $17,540 on average.

If your rates have recently increased, we've also analyzed the cheapest policies in the state which may guide you to more affordable options. Keep in mind that the insurance provider also plays a role in the cost of premiums.

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Rates updated:

Dec 06, 2024

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To establish the average cost of homeowners insurance in Alabama, MoneyGeek used quotes from various providers for a profile that reflects the average homeowner.

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These rates reflect the average cost of home insurance in Alabama as of 2024.

1.2 MQuotes Analyzed
 
8Companies Compared
 
11ZIP Codes

Average Cost of Home Insurance in Alabama by Coverage Amount

The average cost of homeowners insurance in Alabama is $4,123 for policies with $250K Dwelling / $125K Personal Property / $200K Liability coverage. This amount is $1,700 more than the national average.

Selecting how much coverage you need is a key decision. 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.

In Alabama, a policy offering $100K in dwelling coverage costs an annual premium of $2,496. For a larger property with a need for $500K in dwelling coverage, the premium is $6,512 annually.

Average Annual Home Insurance Premium New Jersey by Coverage Amount
$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

Average Cost of Home Insurance in Alabama by Insurer

Premiums for homeowners insurance in Alabama can vary significantly among providers for comparable coverage. For instance, USAA offers a policy at $2,752 annually, while Travelers' similar policy costs $10,671, highlighting the diversity in pricing strategies.

For those shopping around, there are plenty of great providers in Alabama. Differences in underwriting can lead to substantial variations in premiums, so it's wise to compare options.

Average Annual Home Insurance Premium New Jersey by Provider
Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
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

Average Cost of Home Insurance in Alabama by Credit Score

Homeowners in Alabama with excellent credit pay an average annual premium of $2,381 for homeowners insurance, which is $1,742 less than the state average. Conversely, those with poor credit face an average cost of $19,921, a staggering $15,798 above the average. Credit scores have a direct impact on insurance rates, as insurers consider higher credit scores to indicate lower risk.

While you cannot immediately improve your credit score, taking steps to enhance it over time can lead to lower insurance rates. In the short term, it's beneficial to compare insurers to find the most competitive rates. You can quickly see which insurer offers the best savings with a comparison that takes less than 15 minutes.

Average Annual Home Insurance Premium in NJ by Credit Rating
Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
Poor$19,921
Below Fair$10,293
Fair$6,363
Good$4,123
Excellent$2,381

Average Cost of Home Insurance in Alabama by Construction and Roof Type

The type of roof on your home can affect the insurance premiums you pay. The materials used can impact costs due to their durability and resistance to damage. In Alabama, homes with tile roofs, known for their resilience, have lower insurance premiums, averaging $4,049. Shake-treated roofs, which may be more susceptible to damage from severe weather, have higher premiums, averaging $4,308.

Similarly, the construction type of your home can impact insurance costs. Materials that are more resistant to common perils, such as fire, could mean lower premiums. For instance, homes in Alabama with superior construction types have an average insurance cost of $3,817, while those with standard frame construction, which may not be as robust, have an average cost of $4,123.

Use the drop downs on the table below to see how premiums change based on your home's materials.

Average Annual Home Insurance in New Jersey by Construction and Roofing Type
Data filtered by:Results filtered by:
Construction:
Construction:Frame
Roof Type:
Roof Type:Composition
$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

Average Cost of Home Insurance in Alabama for Newly Constructed Homes

Home insurance for new construction in Alabama typically costs less than insuring an existing home. The average annual premium for a newly built home is $2,235, which is $1,888 below the average for an older home. The table below highlights how premiums vary between new and existing homes, helping you find the right coverage level for your needs.

Average Annual Home Insurance Premiums: New vs. Existing Construction
Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
Existing Construction (2000)$4,123
New Construction (2023)$2,235

Average Cost of Home Insurance in Alabama by Claims History

In Alabama, homeowners who have maintained a claim-free record for over five years can expect an average annual premium of $4,123. However, those with one claim within the past five years may see an average increase to $4,960, while two claims could raise the average premium to $5,459. This data indicates that a history of claims can significantly impact insurance costs, with premiums escalating as claims within the five-year window accumulate.

Average Annual Home Insurance in New Jersey by Claims Experience
Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
Claim free for 5+ years$4,123
1 claim in past 5 years$4,960
2 claims in past 5 years$5,459
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ALABAMA NATURAL DISASTERS AND HOME INSURANCE

In Alabama, hurricanes and tornadoes are the biggest natural disasters, but a homeowners policy may not fully cover hurricane damage. Floods, another risk in Alabama, typically aren't covered by homeowners insurance, so you might need separate flood insurance.

Average Cost of Home Insurance by City in Alabama

For the cities we analyzed, we found premiums ranging from $3,296 to $5,702. In Birmingham, the annual premium is about $3,692, while Huntsville sees a slightly lower rate at $3,541. Mobile's premium, on the other hand, jumps to $5,702. Location impacts insurance costs due to factors like crime rates, weather patterns, and local construction costs. For example, cities prone to severe weather may have higher premiums. However, this is just one aspect; credit rating and claims history also greatly influence rates.

Average Annual Home Insurance Premium by City
Data filtered by:Results filtered by:
Coverages:
Coverages:$250K Dwelling / $125K Personal Property / $200K Liability
Birmingham$3,692
Huntsville$3,541
Mobile$5,702
Montgomery$3,296

How to Shop for Home Insurance in Alabama

Shopping for home insurance in Alabama doesn't have to be a tough nut to crack. With the right approach, you can snag a deal that's easy on the wallet and right for your home. It's about being smart and looking in the right places. Here's how to find the best deal for you.

  1. 1
    Understand Your Coverage Needs

    Assess how much coverage you need for your home.

  2. 2
    Compare Quotes

    Get multiple quotes to compare prices and coverage options.

  3. 3
    Check for Discounts

    Ask about bundles and discounts to lower your premium.

  4. 4
    Review Company Reputation

    Check the company's claims experience and customer service.

  5. 5
    Consider Your Deductible

    Choose a deductible that fits your financial situation.

  6. 6
    Finalize Your Policy

    Purchase the policy that offers the best value for you.

Bundling Home Insurance With Auto Insurance in Alabama

In Alabama, homeowners can potentially save an average of 15% by bundling their home and auto insurance policies. This multi-policy strategy can lead to an average savings of up to $891 on the combined cost of both insurance types. For more detailed insights into the best and cheapest home and auto bundle companies in Alabama, you can explore MoneyGeek's comprehensive bundle analysis.

Home Insurance Discounts in Alabama

In Alabama, homeowners can reduce insurance costs with various discounts. To maximize savings, inquire about discounts when obtaining a quote. Here are three:

  • Loyalty discount: Stay with the same insurer to save.
  • Protective devices discount: Install alarms or other security features.
  • Claim-free discount: Lower rates for a history without claims.

There are ways you can save with discounts.

FAQ: Homeowners Insurance in Alabama

On average, what is the cheapest insurer in Alabama?

Is hurricane coverage included in Alabama homeowners insurance?

What is the biggest factor that impacts the price of homeowners insurance in Alabama?

In Alabama, how much can I save on average by bundling homeowners insurance with auto?

Additional Resources for Homeowners Insurance in Alabama

Use the curated links below to learn more about homeowners insurance in Alabama.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.