The Best Home Insurance in Alabama for 2024
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The average cost of homeowners insurance in Alabama is $3,140 per year. That’s compared to the national average of $1,915.
NerdWallet analyzed data from numerous insurance companies to help you find the best home insurance in Alabama in the following categories:
Best for affordability: Cincinnati Insurance.
Best for coverage: Openly.
Best for consumer experience: Nationwide.
The rates in our analysis are estimates based on many factors, so your rate may differ.
Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.
Best affordable homeowners insurance in Alabama: Cincinnati Insurance
Cincinnati Insurance
Coverage options
Discounts
NAIC complaints
Cincinnati Insurance
Coverage options
Discounts
NAIC complaints
In Alabama, the average annual premium for Cincinnati Insurance is $2,085, which is well below the state average of $3,140.
Cincinnati Insurance sells homeowners policies through independent agents, with various options for standard and high-value homes. You may be able to add coverage for things like identity theft, personal cyber attacks or certain types of water damage.
Cincinnati may offer you a discount for bundling home and auto insurance, having a newer home or installing a centrally monitored alarm system.
Learn more with our Cincinnati Insurance homeowners insurance review.
Best homeowners insurance in Alabama for coverage: Openly
Coverage options
Discounts
NAIC complaints
Openly
Coverage options
Discounts
NAIC complaints
Openly offers homeowners insurance with generous coverage. Its policies include guaranteed replacement cost coverage for the structure of your home, which means the company will pay whatever it takes to rebuild your home if it’s destroyed.
Unlike many other insurers, Openly doesn’t have dog breed restrictions that could affect your ability to get liability coverage. It may also be a good bet for homeowners with collections of jewelry or other valuables, with up to $100,000 of blanket coverage available for these items.
Learn more with our Openly home insurance review.
Best homeowners insurance in Alabama for consumer experience: Nationwide
Nationwide
Coverage options
Discounts
NAIC complaints
Nationwide
Coverage options
Discounts
NAIC complaints
Nationwide offers a robust digital experience for its customers, including a website that makes it easy to manage policies, file and track claims, and set up automatic billing. It also has a highly rated app for Android and iOS that allows customers to file and track claims, review policy documents, and set up autopay.
In addition, Nationwide’s customers have several ways to get assistance, such as reaching out to their agent or calling the company’s customer service hotline. Outside of business hours, they can use the Nationwide website to get proof of insurance, pay bills and schedule callbacks. A chatbot is also available to answer basic questions.
Learn more with our Nationwide homeowners insurance review.
Full list of the best homeowners insurance in Alabama
NerdWallet analyzed home insurance companies across the state to find the best home insurance in Alabama. Here are all of the insurers that received a NerdWallet star rating of 4.5 or higher:
Company | NerdWallet star rating | Average annual rate |
---|---|---|
Not available | ||
Not available | ||
$4,010 | ||
$3,050 | ||
$2,085 | ||
$3,455 | ||
Not available | ||
$3,140 | ||
$2,620 | ||
USAA* | $2,645 | |
*USAA homeowners policies are available only to active military, veterans and their families. |
How much does homeowners insurance cost in Alabama?
The average annual cost of home insurance in Alabama is $3,140. That’s 64% more than the national average of $1,915.
In most states, including Alabama, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.
In Alabama, those with poor credit pay an average of $5,475 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 74% more than those with good credit, who pay $3,140.
Average cost of homeowners insurance in Alabama by city
How much you pay for home insurance in Alabama will depend on your ZIP code. For example, the average cost of homeowners insurance in Birmingham is $3,140 a year, while homeowners in Mobile pay an average of $3,865 per year.
City | Average annual rate | Average monthly rate |
---|---|---|
Alabaster | $2,845 | $237 |
Albertville | $3,615 | $301 |
Anniston | $3,070 | $256 |
Athens | $3,140 | $262 |
Auburn | $2,845 | $237 |
Bessemer | $3,140 | $262 |
Birmingham | $3,140 | $262 |
Cullman | $3,140 | $262 |
Daphne | $3,750 | $313 |
Decatur | $3,130 | $261 |
Dothan | $3,215 | $268 |
Enterprise | $3,120 | $260 |
Fairhope | $3,655 | $305 |
Florence | $3,140 | $262 |
Foley | $4,175 | $348 |
Gadsden | $3,390 | $283 |
Huntsville | $3,115 | $260 |
Madison | $3,000 | $250 |
Mobile | $3,865 | $322 |
Montgomery | $3,135 | $261 |
Northport | $3,140 | $262 |
Opelika | $2,845 | $237 |
Phenix City | $2,945 | $245 |
Prattville | $2,910 | $243 |
Tuscaloosa | $3,140 | $262 |
The cheapest home insurance in Alabama
Here are the insurers we found with average annual rates below the Alabama average of $3,140.
Company | NerdWallet star rating | Average annual rate |
---|---|---|
$2,085 | ||
$2,360 | ||
$2,620 | ||
$3,050 | ||
USAA* | $2,645 | |
*USAA homeowners policies are available only to active military, veterans and their families. |
What to know about Alabama homeowners insurance
You may face certain risks when living in Alabama. Here are a few of the most common, along with steps you can take to insure your home properly against them.
Hurricanes and tropical storms
Hurricanes and tropical storms can cause significant damage to your home and property. Your policy likely covers wind damage, but you may have a separate wind, hail or hurricane deductible. (A deductible is the amount subtracted from your claim payout.)
For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for wind claims. So if your house has $200,000 worth of dwelling coverage, you’d be responsible for the first $2,000 of wind damage yourself.
Hurricanes can also cause flood damage, which most homeowners insurance doesn’t cover. If you live in a high-risk area, you’ll likely need a separate policy for flood insurance as well.
Flooding
Standard homeowners insurance policies don't cover flood damage, so if you live in a flood-prone area, consider buying flood insurance.
To find out whether you’re at risk, check the Federal Emergency Management Agency's flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Because flooding can happen anywhere if it rains hard enough, you may want to consider buying flood insurance even if you’re in a relatively low-risk location.
Note that while you can purchase flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect.
Tornadoes
Your homeowners insurance policy probably covers tornado damage. Still, it’s important to review your policy so you understand how your coverage works. Some policies have a separate deductible for wind damage, meaning potential extra costs for you in case of a claim.
Alabama insurance department
The Alabama Department of Insurance oversees the state’s insurance industry and provides consumer protections. On its site, you can search for licensed insurance companies and access information for homeowners. If you have a complaint about your insurance company, you can file it online with the department. You can also call the agency’s consumer services hotline with insurance questions at 800-433-3966.
Amanda Shapland contributed to this story.
NerdWallet calculated median rates for 40-year-old homeowners from various insurance companies in every ZIP code across the state. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:
$300,000 in dwelling coverage.
$30,000 in other structures coverage.
$150,000 in personal property coverage.
$60,000 in loss of use coverage.
$300,000 in liability coverage.
$1,000 in medical payments coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for homeowners with poor credit.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Star rating methodology
NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full homeowners insurance rating methodology.
Complaint methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
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