The Best Home Insurance in Alabama for 2024

Cincinnati Insurance and Nationwide are among the best home insurance companies in Alabama.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Updated · 4 min read
Profile photo of Sarah Schlichter
Written by Sarah Schlichter
Lead Writer
Profile photo of Caitlin Constantine
Assistant Assigning Editor
Fact Checked
Profile photo of Kayda Norman
Co-written by Kayda Norman
Lead Writer

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:

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.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

Hosue and clouds
Get home insurance quotes in minutes
Answer a few questions to see custom quotes and find the right policy for you.

Best affordable homeowners insurance in Alabama: Cincinnati Insurance

insurance-product-card-logo

Cincinnati Insurance

4.5

NerdWallet rating 
Sells homeowners policies through local independent agents across the U.S.

Coverage options

About average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

Cincinnati Insurance

4.5

NerdWallet rating 
Sells homeowners policies through local independent agents across the U.S.

Coverage options

About average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

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.


Best homeowners insurance in Alabama for coverage: Openly

insurance-product-card-logo

Openly

4.5

NerdWallet rating 
Premium coverage for high-end homes with no dog breed restrictions.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

Openly

4.5

NerdWallet rating 
Premium coverage for high-end homes with no dog breed restrictions.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

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

insurance-product-card-logo

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected

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.


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

5.0

NerdWallet rating 

Not available

5.0

NerdWallet rating 

Not available

5.0

NerdWallet rating 

$4,010

5.0

NerdWallet rating 

$3,050

4.5

NerdWallet rating 

$2,085

4.5

NerdWallet rating 

$3,455

4.5

NerdWallet rating 

Not available

4.5

NerdWallet rating 

$3,140

4.5

NerdWallet rating 

$2,620

5.0

NerdWallet rating 

$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

4.5

NerdWallet rating 

$2,085

4.5

NerdWallet rating 

$2,360

4.5

NerdWallet rating 

$2,620

5.0

NerdWallet rating 

$3,050

5.0

NerdWallet rating 

$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.

Frequently asked questions

Homeowners insurance isn’t required by Alabama state law, but your mortgage lender will likely require you to have it. For more details, read Is Homeowners Insurance Required?

There are several ways to save money on homeowners insurance in Alabama:

  • Shop around for the best rate. An independent insurance agent can help.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but you’ll pay less in annual or monthly premiums.

  • Bundle your home and auto insurance for an overall lower rate. Check out the best home and auto insurance bundles.

  • Ask your insurer if you qualify for any home insurance discounts.

A standard home insurance policy in Alabama won’t cover flooding. That means you may want to buy separate flood insurance if your home is in a high-risk area.

Amanda Shapland contributed to this story.

Methodology

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.

Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.
Compare Home Insurance Rates
Compare Home Insurance Rates
Get instant quotes from top home insurance companies and compare now.