Alabama Homeowners Insurance Guide

Alabama homeowners looking for homeowners insurance in Alabama can stop their search right here, regardless of where their ZIP code puts them.

Insurance Geek helps homeowners looking for insurance coverage find the best quotes by taking the various elements of their homes into consideration!

So, in order to protect your home and find the best homeowners insurance companies in Alabama, keep on reading! We will also introduce you to all the important terms regarding your homeowners policy.

Alabama Home Insurance: The Basics

Who doesn’t love Alabama?

Whether you’re ready to Roll Tide, enjoy the lush green landscapes, or you’re more looking to enjoy the shore, the state has some incredibly affordable home and property rates worth looking into.

Birmingham is a bustling metro with tons to do, and the University of Alabama is one of the country’s oldest educational institutions.

Huntsville and Montgomery have incredibly safe neighborhoods – and if you’re looking to get small, Fairhope is an excellent place to create roots with the fam. Whether you’re looking for the big city metro or the smaller, more quaint experience, the state of Alabama has plenty to offer.

Alabama has 524 violent incidents per 100,000 residents, making it the 17th most dangerous state in the United States. The top safest cities in Alabama are suburbs, including places like Helena, Satsuma, Vestavia Hills, and other such suburbs.

Crime might be one issue, but gulf hurricanes are certainly something to watch out for, like in other states such as Texas, Georgia, and South Carolina.

In addition to hurricanes, coastal flooding, tornadoes, strong, dangerous thunderstorms, and other perils also affect the state and, consequently, the price of Alabama homeowners insurance.


In homeowner’s insurance terms, a PERIL is anything that can cause home damage. It’s important to know which perils are included in your insurance policy because you can file a claim and receive money in case they cause damage or loss.

Most commonly, you will find all the info you need on the covered perils on your policy’s declarations page.

There are definitely some hazards to consider in Alabama, including:

  • Residential property damage
  • Drain and also drainpipe – most bathroom flooding circumstances are due to drain and sewage system backups.
  • All-natural catastrophes.
  • Wind.
  • Lightning.
  • Hurricanes.
  • Hail.
  • Fire.
  • Burglary.
  • Vandalism.

To ensure that you are getting adequate protection with your Alabama home insurance, you should make sure that you are covered for all of the perils mentioned above.

How are Premiums Determined in Alabama?

Alabama homeowners insurance price isn’t only affected by the state and your ZIP code location. Many other factors may impact what you’ll pay for your policy.

Your homeowners insurance coverage will be influenced by factors such as:

Your credit score;

Insurance companies will certainly consider your credit score when determining the premium. They are interested in your financial history, and it’s only logical because you are going to pay the premium and the deductible to them.

Now, don’t fret if your credit score isn’t as beneficial as you’d like it to be because you can always boost it. Plus, we’ll help you find affordable solutions regardless!

Home value;

The value of your home is one of the paramount factors that will affect the homeowners insurance rate you’ll get.

Assessing the condition of your house (age of build, construction materials, etc.) is utilized to determine the replacement cost of it, which is actually how much it would take to rebuild it or repair it in case of an accident.

If you’d like to find out more about replacement cost and how it differs from the market value of your home, read our article on it.

Insurance company;

Every insurance company has a different assortment of homeowners insurance policies, so the rates they provide will also vary greatly.

Our mission at Insurance Geek is to connect you with the insurance carrier that has the best policy for your needs.

Our recommendations are Safeco, a Liberty Mutual company, Nationwide, a Mutual Insurance company, and Progressive.

Previous claims;

If there have been previous insurance claims on the property, it may drive up the premium. Previous claims show that there’s a higher chance of a risk occurring because it already has, and insurance companies will always take that into account.


You can get various home insurance discounts. Bundling up multiple policies with the same company is one of the ways to earn them.

We’ll take a look at your case background and help you find family bundles and any other savings bundle you are eligible for.

Also, paying your policy in advance will help you save up. If you have security systems installed (e.g., fire or burglary alarms), this can help, too!

What is the Best Option for Home Insurance in Alabama?

There are various kinds of home insurance policies.

We will get you acquainted with the two most popular options for Alabama home insurance:

NAMED Policy

Named policies only protect you from perils that are explicitly stated in them. That’s why they are less recommended option unless you wish to cover some gaps in your existing policy.

For example, your policy may not include hurricanes, and you’ve realized that you need that sort of coverage. It could be beneficial to get a named policy for this peril.

If you share your existing policy with us, our agents can assess it and see how we can help you get even more protection.


If you truly wish to secure your belongings, an ALL PERIL plan can help.

All peril insurance policies protect you against all the perils unless you find that a certain peril is explicitly omitted from it.

So, it’s the best option for homeowners in Alabama because it will protect them from all risks we’ve mentioned above.

Get the Best Home Insurance Quotes Today

Homeowners insurance shopping certainly can get a little complicated with a myriad of options and factors that determine home insurance prices.

That’s why Insurance Geek made it easy for you to get a home insurance quote if you use the comparison tool on our site.

What you need to do is tell us your ZIP code and address, and we will generate the rates for you and help you find the right insurance company. It won’t take you more than a minute to fill in the data and get the quotes!

So, let Insurance Geek help you quickly and easily shop your home insurance in Alabama. We have multiple companies we can quickly compare rates with.

Our licensed insurance agents can provide any further info.

The recommendation for a home insurance policy for Alabama homeowners is Nationwide, Safeco, and Progressive for their excellent rates and options.

We can help you find and compare Alabama renters insurance quotes, too.

Our price tool can help you find the best possible policies in your area! Take a look at our offerings and let carriers compete for your business with just one form fill. We’d love to chat with you!

What Discounts are Available?

In our experience, most of our customers qualify for discounts by getting more policies at once. Let us know if you wish to combine policies, and we’ll help you save up!

Other discounts include paying your policy upfront and having some security precautions, such as burglary alarms. Being located near the local fire department may work in your favor, too.

Top Cities & Metro Suburbs in Alabama for Homeowners

the state of Alabama homeowners insurance

Our customers who are homeowners in Alabama come from pretty much every ZIP code in the state.

For instance, they come from the biggest cities in the state of Alabama:

  • Birmingham
  • Huntsville
  • Montgomery
  • Tuscaloosa
  • Mobile
  • Hoover
  • Dothan
  • Auburn

The home insurance rates are lower when we move to the suburbs of the state, so many Alabama homeowners choose to relocate there.

Here are the top metro suburbs in Alabama with average homeowners cost breakdowns:

  • Mountain Brook
  • Vestavia Hills
  • Homewood
  • Helena
  • Pelham
  • Madison
  • Fairhope
  • Trussville
  • Daphne
  • Alabaster
  • Chelsea
  • Athens
  • Hartselle
  • Calera
  • Irondale

Our policies are offered through Nationwide, Safeco, a Liberty Mutual company, and also Progressive, which provide affordable prices regardless of your ZIP code in the state.

Who Should Get Alabama homeowners insurance?

Both brand-new and also existing property owners will need a home insurance policy in Alabama.


Your home is your most valuable asset, and home insurance is the only adequate protection for it. It is a guarantee that you and your family will never encounter enormous financial losses.

Also, bear in mind that your mortgage lender will require proof that you have homeowners insurance.

What Does Home Insurance Coverage Include?

What your policy features may be individual as there are many different coverage options. However, most of the home policies have a structure that they follow.

So, let’s see:

What does typical homeowners coverage in a policy look like?

The structure of a policy includes:

Coverage A – Dwelling Amount

Dwelling coverage or dwelling amount covers the physical structure of the home. It should be based on the replacement cost in order to make sure your whole house can be rebuilt and repaired.

Coverage B – Separate Structures

Parts of your property that are detached from your house are protected, too.

These can include mailboxes, attached garages, fences, sheds, pools, etc.

Coverage C – Personal Property

Personal property insurance accounts for your personal belongings inside the house, including the furniture, appliances, clothes, dishes, etc.

If you have high-value items you wish to additionally secure, Nationwide has their Valuables Plus policy, whereas Safeco offers Valuable Articles Coverage.

Coverage D – Loss of Use

Loss of use coverage accounts for the costs incurred if you’re unable to use your home for some time. These additional expenses run the gamut from a place to stay to excessive restaurant bills and transportation.

Coverage E – Personal Liability

The personal liability part of your policy kicks in if you or your family members are found liable for damages or a suit is brought against you due to a covered occurrence.

It can be used to cover things like defense in court.

Coverage F – Medical Payments

Coverage F refers to the payment of medical bills for anyone injured on your property. Most frequent claims here include X-rays, ambulance transportation costs, and minor interventions.

What Isn’t Included in Your Home Policy?

Sometimes, your home insurance policy will not include everything that you need.

Here are some additional coverage options that are popular and highly recommended:

Auto Insurance (Car Insurance)

If you are a vehicle owner, protecting your car is of utmost importance, just like your home.

Plus, getting both home and car insurance will score you discounts!

You can find the best auto insurance quotes from Nationwide and our other carriers on our website, too, for any state, including Alabama.

Life Insurance

Life insurance is also one of those insurance products everyone needs. Our carriers have a wide range of whole and term life policies, and we can help you compare the cheapest life insurance quotes instantly.

Flood Insurance

Flood insurance is not a part of any homeowners insurance policy, and you would have to get it separately.

However, that is not to say that you can get protected from water damages (that are one of the biggest risks for homeowners in Alabama).

Nationwide, Safeco and Progressive all have endorsements you can add to your policy to be safe from sump pump failure and water, drain, and sewer backup.

Other Coverage Options

Other popular options you can get include credit card insurance that protects you against unauthorized transactions and identity theft protection that mitigates the consequences in the case of identity theft.

Both options don’t cost a lot of money, and yet can save you so much trouble!

If you need help determining what the best options for your case are, an Insurance Geek will gladly lend you an ear.

Also, see Alabama Car Insurance.

Home Insurance in Alabama: FAQ

Q: How much is homeowners insurance in Alabama?

A: The average cost of home insurance in Alabama is around $1,917, which is higher than the national average cost in the states. However, your price can be impacted by a number of aspects, including your credit history, the value of the residence, whether or not you’ve filed a claim before application, multiple lines, and various discounts. We’ll find the cheapest homeowners insurance for you if you use our quote generator tools!

Q: What are the best home insurance companies in Alabama?

A: In our experience, the best homeowners insurance companies in Alabama are Nationwide, Safeco and Progressive. Why did we choose Safeco, Progressive, and Nationwide? Because these carriers offer the best value for the money on their products and have a reputation of successful claims and satisfied customers.

Final Words

What’s your address and ZIP code in Alabama?

Use our comparison service to fill in this basic info, and we’ll help you protect your home with the best insurance quotes and discounts!

Insurance Geek agents are there to guide you throughout the entire shopping process, and we write our policies through Nationwide, Progressive, and Safeco.