Best Alabama Homeowners Insurance for 2026
Farmers is our pick for best overall Alabama home insurance, but State Farm may be better for bundling
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- Farmers has the best homeowners insurance in Alabama with cheap rates and helpful coverage options.
- Home insurance costs an average of $3,614 a year in Alabama.
- Home insurance rates have gone up by 37% in Alabama over the past five years.
- Homeowners in Mobile and Baldwin counties have particularly high rates.
Best homeowners insurance in Alabama
Farmers’ low rates and valuable coverage options help make it Alabama’s best homeowners insurance company.
Country Financial has the best customer service. Its exceptional rating from the National Association of Insurance Commissioners (NAIC)
State Farm’s cheap rates for home and car insurance make it the best choice for bundling these policies.
Best overall: Farmers
Average annual rate: $1,074
Why we chose it: Farmers has the cheapest rates in our analysis and a good complaint score from the NAIC.
Who it’s best for: Most homeowners. In addition to cheap rates, Farmers offers several useful add-on coverages. These include an option to replace a damaged roof with a stronger one. Its guaranteed replacement
PROS
- Cheapest home insurance in Alabama
- Optional add-ons let you customize your coverage
- Better-than-average complaint score
CONS
- Country Financial has a better NAIC score, or fewer complaints
Best customer service: Country Financial
Average annual rate: $3,626
Why we chose it: A 0.1 complaint rating means Country Financial has one-tenth as many complaints as average. Its standard policies can save you money, while its premier coverage tiers offer more protection.
Who it’s best for: Responsive service. A good complaint score means Country Financial usually pays out claims in a fair, prompt manner. Although its rates are just average, it offers several discounts that can make it more affordable. These include discounts for newer homes as well as older homes that have been renovated.
PROS
- Exceptional NAIC complaint rating
- Several discounts can make it more affordable
- Flexible coverage choices available
CONS
- Rates before discounts are just average
Best for bundlers: State Farm
Average annual rate: $3,017
Why we chose it: State Farm’s rates beat the state average for home and auto insurance. Its multipolicy discount makes its relatively cheap rates more affordable when you bundle
Who it’s best for: Home and auto bundlers. Low home and auto insurance rates make State Farm a strong option for homeowners. The company also offers several useful add-on protections. These include an option to replace damaged appliances with more energy-efficient new ones.
PROS
- Cheaper than average home and auto insurance
- Useful add-on protections for your home
- Energy efficiency upgrades available for appliances
CONS
- Complaint score is higher than the average
- Farmers and Allstate have cheaper home rates
Compare home insurance rates and ratings in Alabama
| Company | Annual rate* | LendingTree rating | Complaint rating* | |
|---|---|---|---|---|
| Farmers | $1,074 | 3.5/5 | 0.7 |
 | Allstate | $1,620 | 4/5 | 1.2 |
| State Farm | $3,017 | 4/5 | 1.4 |
 | Cincinnati | $3,106 | 4/5 | 0.2 |
| Country Financial | $3,626 | 4/5 | 0.1 |
 | Nationwide | $4,607 | 3.5/5 | 1.2 |
 | Auto-Owners | $4,744 | 4/5 | 0.51 |
 | Alfa | $4,781 |  4.5/5 | 0.75 |
 | Travelers | $5,775 | 3.5/5 | 0.69 |
 | USAA** | $3,788 | 4/5 | 0.52 |
Each company’s rates vary by customer. That’s why it’s smart to compare home insurance quotes from a few companies to find the best rate for you.
LendingTree analyzed thousands of quotes from top insurers across Alabama to identify the best options for homeowners.
Our team evaluated pricing, customer experience, financial reliability and coverage features to determine the top home insurance companies in the state.
See full methodology.
How much is homeowners insurance in Alabama?
Homeowners insurance costs an average of $3,614 a year in Alabama, or $301 a month.
This is 38% higher than the national average of $2,628 a year.
Average home insurance rates by dwelling coverage amount
Your actual rate depends on factors like your location, your home’s features and your credit. The amount of coverage you need also affects your rate.
For example, it costs 20% less to insure a home for $300,000 than it does to insure one for $400,000. You usually need to insure your home at its replacement value.
Home insurance rates by dwelling coverage
| Company | $300,000 | $400,000 | $550,000 | $750,000 |
|---|---|---|---|---|
| Country Financial | $2,929 | $3,626 | $4,671 | $6,065 |
| Farmers | $797 | $1,074 | $1,759 | $2,254 |
| State Farm | $2,547 | $3,017 | $3,638 | $4,407 |
| Average | $2,905 | $3,614 | $4,713 | $6,093 |
Most insurance companies can help you estimate your home’s replacement value, based on its age and construction features. You can find most of these details yourself by looking up your home on your county assessor’s website.
Alabama home insurance rates by city
Home insurance tends to cost more in Alabama’s coastal areas than it does in inland areas.
For example, Dauphin Island has the state’s most expensive home insurance at more than $15,000 a year. The Mobile County towns of Bayou La Batre and Belle Fontaine have the next-highest rates, at more than $9,000 per year each.
Meanwhile, Shelby County’s Brook Highland area has Alabama’s cheapest home insurance at $2,682 per year. This is 26% less than the state average. Huntsville homeowners pay an average of $3,166 a year, or 12% less than the average.
| City | Annual rate |
|---|---|
| Abbeville | $3,224 |
| Abernant | $4,437 |
| Adamsville | $3,166 |
| Adger | $3,295 |
| Akron | $3,453 |
| Alabaster | $2,759 |
| Albertville | $3,517 |
| Alexander City | $2,805 |
| Alexandria | $3,311 |
| Allgood | $4,899 |
| Alpine | $3,233 |
| Alton | $4,430 |
| Andalusia | $3,356 |
| Anderson | $3,476 |
| Annemanie | $3,415 |
| Anniston | $3,326 |
| Arab | $3,514 |
| Ardmore | $3,332 |
| Argo | $3,251 |
| Ariton | $3,373 |
| Arley | $3,782 |
| Arlington | $3,349 |
| Ashford | $4,462 |
| Ashland | $3,246 |
| Ashville | $3,501 |
| Athens | $3,144 |
| Atmore | $3,591 |
| Attalla | $3,420 |
| Auburn | $2,745 |
| Auburn University | $4,003 |
| Axis | $5,256 |
| Babbie | $3,393 |
| Baileyton | $3,509 |
| Ballplay | $3,445 |
| Banks | $3,089 |
| Bankston | $3,539 |
| Bay Minette | $4,928 |
| Bayou La Batre | $9,949 |
| Beaverton | $3,634 |
| Belk | $3,482 |
| Bellamy | $4,111 |
| Belle Fontaine | $9,874 |
| Belle Mina | $4,612 |
| Bellwood | $3,784 |
| Berry | $3,525 |
| Bessemer | $3,200 |
| Billingsley | $3,360 |
| Birmingham | $3,205 |
| Black | $3,657 |
| Blue Ridge | $2,863 |
| Boaz | $3,575 |
| Boligee | $3,992 |
| Bon Air | $4,549 |
| Bon Secour | $5,928 |
| Booth | $4,480 |
| Boykin | $3,417 |
| Brent | $3,215 |
| Brewton | $3,240 |
| Bridgeport | $3,432 |
| Brierfield | $3,199 |
| Brighton | $3,248 |
| Brilliant | $3,766 |
| Brook Highland | $2,682 |
| Brooklyn | $4,686 |
| Brookside | $3,284 |
| Brookwood | $3,135 |
| Brownsboro | $3,116 |
| Brundidge | $3,144 |
| Bryant | $3,475 |
| Bucks | $5,192 |
| Buhl | $3,140 |
| Burnwell | $4,855 |
| Bynum | $4,790 |
| Calera | $2,738 |
| Calvert | $4,348 |
| Camden | $3,162 |
| Camp Hill | $2,794 |
| Campbell | $3,449 |
| Capshaw | $3,265 |
| Carbon Hill | $3,792 |
| Cardiff | $4,385 |
| Carlisle-Rockledge | $3,473 |
| Carlton | $4,776 |
| Carrollton | $3,460 |
| Catherine | $3,458 |
| Cecil | $3,185 |
| Cedar Bluff | $3,468 |
| Center Point | $3,162 |
| Centre | $3,520 |
| Centreville | $3,236 |
| Chancellor | $4,475 |
| Chapman | $4,500 |
| Chatom | $4,002 |
| Chelsea | $2,703 |
| Cherokee | $3,622 |
| Chickasaw | $5,399 |
| Childersburg | $3,209 |
| Choccolocco | $3,304 |
| Chunchula | $5,459 |
| Citronelle | $3,952 |
| Clanton | $3,138 |
| Clay | $4,436 |
| Clinton | $4,495 |
| Clopton | $3,347 |
| Cloverdale | $4,695 |
| Coaling | $3,009 |
| Coats Bend | $3,360 |
| Coden | $7,118 |
| Coffee Springs | $3,420 |
| Columbia | $3,276 |
| Columbiana | $2,876 |
| Cook Springs | $3,324 |
| Coosada | $2,977 |
| Cordova | $3,699 |
| Cottondale | $3,001 |
| Cottonton | $4,310 |
| Courtland | $3,594 |
| Cowarts | $4,455 |
| Coy | $3,293 |
| Cragford | $3,066 |
| Creola | $5,440 |
| Cropwell | $3,338 |
| Crossville | $3,512 |
| Cuba | $4,043 |
| Cullman | $3,343 |
| Cusseta | $2,949 |
| Dadeville | $2,787 |
| Daleville | $3,354 |
| Daphne | $7,222 |
| Dauphin Island | $15,431 |
| Daviston | $2,836 |
| Dawson | $3,600 |
| De Armanville | $4,719 |
| Deatsville | $2,898 |
| Decatur | $3,267 |
| Deer Park | $5,146 |
| Delmar | $5,003 |
| Delta | $3,318 |
| Demopolis | $3,175 |
| Detroit | $3,850 |
| Dickinson | $3,364 |
| Dixons Mills | $3,323 |
| Docena | $3,244 |
| Dolomite | $3,277 |
| Dora | $3,367 |
| Dothan | $3,143 |
| Dozier | $4,434 |
| Duncanville | $3,036 |
| Dunnavant | $2,847 |
| Dutton | $3,423 |
| East Brewton | $4,279 |
| East Tallassee | $4,207 |
| Eastaboga | $3,359 |
| Echola | $3,134 |
| Edgewater | $3,335 |
| Edwardsville | $3,295 |
| Eight Mile | $5,473 |
| Elba | $3,367 |
| Eldridge | $3,759 |
| Elkmont | $3,272 |
| Elmore | $2,983 |
| Elrod | $3,150 |
| Emelle | $4,033 |
| Emerald Mountain | $2,938 |
| Enterprise | $3,147 |
| Epes | $4,009 |
| Equality | $3,118 |
| Estillfork | $3,559 |
| Eufaula | $3,333 |
| Eutaw | $4,038 |
| Evergreen | $3,345 |
| Excel | $4,622 |
| Fackler | $3,502 |
| Fairfield | $3,251 |
| Fairhope | $8,233 |
| Fairview | $3,443 |
| Falkville | $3,418 |
| Fayette | $3,473 |
| Five Points | $3,258 |
| Flat Rock | $3,563 |
| Florala | $3,559 |
| Florence | $3,405 |
| Foley | $6,136 |
| Forest Home | $3,154 |
| Forestdale | $3,264 |
| Forkland | $4,019 |
| Fort Deposit | $4,060 |
| Fort Mitchell | $2,930 |
| Fort Novosel | $3,410 |
| Fort Payne | $3,435 |
| Fort Rucker | $3,324 |
| Franklin | $3,369 |
| Frankville | $3,881 |
| Fulton | $3,330 |
| Fultondale | $2,942 |
| Furman | $4,643 |
| Gadsden | $3,314 |
| Gainestown | $4,757 |
| Gallant | $3,620 |
| Gallion | $3,347 |
| Gantt | $4,566 |
| Garden City | $3,509 |
| Gardendale | $2,915 |
| Gaylesville | $3,430 |
| Geneva | $3,413 |
| Georgiana | $3,133 |
| Geraldine | $3,629 |
| Gilbertown | $3,365 |
| Glen Allen | $3,614 |
| Glencoe | $3,317 |
| Glenwood | $3,288 |
| Good Hope | $3,413 |
| Goodsprings | $4,865 |
| Goodwater | $3,202 |
| Goodway | $4,582 |
| Gordonville | $4,062 |
| Goshen | $3,016 |
| Grady | $3,032 |
| Graham | $3,328 |
| Grand Bay | $7,593 |
| Grayson Valley | $3,075 |
| Graysville | $3,256 |
| Green Pond | $3,257 |
| Greensboro | $3,425 |
| Greenville | $2,996 |
| Grimes | $3,270 |
| Groveoak | $3,586 |
| Guin | $3,681 |
| Gulf Shores | $6,908 |
| Guntersville | $3,453 |
| Gurley | $3,259 |
| Hackleburg | $3,765 |
| Hackneyville | $2,842 |
| Haleyville | $3,652 |
| Hamilton | $3,706 |
| Hammondville | $3,583 |
| Hanceville | $3,475 |
| Hardaway | $3,621 |
| Harpersville | $2,948 |
| Hartford | $3,447 |
| Hartselle | $3,209 |
| Harvest | $3,130 |
| Hatchechubbee | $2,939 |
| Hayneville | $4,022 |
| Hazel Green | $3,246 |
| Headland | $3,151 |
| Heflin | $3,161 |
| Helena | $2,774 |
| Henagar | $3,595 |
| Higdon | $3,522 |
| Highland Home | $3,043 |
| Highland Lake | $3,464 |
| Highland Lakes | $2,720 |
| Hodges | $3,762 |
| Hokes Bluff | $3,341 |
| Hollins | $3,288 |
| Holly Pond | $3,440 |
| Hollytree | $3,519 |
| Hollywood | $3,455 |
| Holt | $3,008 |
| Holtville | $2,977 |
| Holy Trinity | $4,342 |
| Homewood | $3,027 |
| Honoraville | $3,169 |
| Hoover | $2,793 |
| Horton | $3,605 |
| Houston | $3,857 |
| Hueytown | $3,186 |
| Huguley | $3,060 |
| Huntsville | $3,166 |
| Huxford | $4,500 |
| Indian Springs Village | $2,705 |
| Irondale | $3,013 |
| Irvington | $6,290 |
| Ivalee | $3,474 |
| Jachin | $4,217 |
| Jack | $3,179 |
| Jackson | $3,356 |
| Jacksons Gap | $2,772 |
| Jacksonville | $3,357 |
| Jasper | $3,581 |
| Jefferson | $4,576 |
| Jemison | $3,005 |
| Jones | $3,286 |
| Joppa | $3,449 |
| Kansas | $3,778 |
| Kellerman | $4,397 |
| Kellyton | $2,990 |
| Kennedy | $3,524 |
| Kent | $4,363 |
| Kimberly | $3,142 |
| Kinsey | $3,155 |
| Kinston | $3,317 |
| Knoxville | $4,081 |
| La Fayette | $3,076 |
| Lanett | $3,041 |
| Langston | $3,563 |
| Lapine | $3,233 |
| Lawley | $3,234 |
| Leeds | $3,019 |
| Lenox | $3,591 |
| Leroy | $4,975 |
| Lester | $3,290 |
| Letohatchee | $4,276 |
| Level Plains | $3,286 |
| Lexington | $3,503 |
| Lillian | $6,756 |
| Lincoln | $3,200 |
| Linden | $3,160 |
| Lineville | $3,116 |
| Lipscomb | $3,254 |
| Little River | $5,331 |
| Littleville | $3,677 |
| Livingston | $4,124 |
| Loachapoka | $4,262 |
| Lockhart | $3,657 |
| Locust Fork | $3,605 |
| Lookout Mountain | $3,395 |
| Lower Peach Tree | $3,423 |
| Loxley | $5,502 |
| Luverne | $3,134 |
| Lynn | $3,943 |
| Madison | $3,078 |
| Magnolia | $3,364 |
| Magnolia Springs | $6,325 |
| Malcolm | $4,295 |
| Malvern | $3,264 |
| Marbury | $3,198 |
| Margaret | $3,250 |
| Marion | $4,425 |
| Marion Junction | $3,707 |
| Mathews | $3,069 |
| Maxwell Air Force Base | $3,116 |
| Maxwell Air Force Base Gunter Annex | $3,042 |
| Maylene | $2,712 |
| Mc Shan | $3,422 |
| Mc Williams | $4,582 |
| McCalla | $3,099 |
| McDonald Chapel | $3,334 |
| McKenzie | $3,248 |
| Meadowbrook | $2,710 |
| Megargel | $4,637 |
| Melvin | $3,449 |
| Mentone | $3,493 |
| Meridianville | $3,216 |
| Mexia | $4,637 |
| Midfield | $3,267 |
| Midland City | $3,258 |
| Millbrook | $2,983 |
| Millerville | $3,275 |
| Minor | $3,336 |
| Minter | $3,960 |
| Mobile | $6,281 |
| Monroeville | $4,382 |
| Montevallo | $2,833 |
| Montgomery | $2,920 |
| Montrose | $7,245 |
| Moody | $3,164 |
| Moores Mill | $3,177 |
| Mooresville | $3,259 |
| Morris | $3,212 |
| Morvin | $3,445 |
| Moulton | $3,555 |
| Moundville | $3,411 |
| Mount Olive | $3,053 |
| Mountain Brook | $2,899 |
| Mulga | $3,320 |
| Muscadine | $3,425 |
| Muscle Shoals | $3,354 |
| Myrtlewood | $3,411 |
| Nanafalia | $4,654 |
| Napier Field | $4,458 |
| Natural Bridge | $4,946 |
| Needham | $3,348 |
| New Brockton | $3,158 |
| New Castle | $3,121 |
| New Hope | $3,249 |
| New Site | $2,822 |
| Newton | $3,244 |
| Newville | $3,211 |
| Normal | $4,587 |
| Northport | $2,944 |
| Notasulga | $3,134 |
| Oak Hill | $4,641 |
| Odenville | $3,227 |
| Ohatchee | $3,466 |
| Oneonta | $3,403 |
| Opelika | $2,795 |
| Opp | $3,330 |
| Orange Beach | $6,617 |
| Our Town | $2,853 |
| Owens Cross Roads | $3,102 |
| Oxford | $3,201 |
| Ozark | $3,177 |
| Paint Rock | $3,497 |
| Palmerdale | $4,382 |
| Panola | $4,029 |
| Pansey | $4,485 |
| Parrish | $3,651 |
| Pelham | $2,685 |
| Pell City | $3,213 |
| Pennington | $3,354 |
| Perdido | $5,088 |
| Perdido Beach | $6,979 |
| Perdue Hill | $3,382 |
| Perote | $4,425 |
| Peterman | $3,326 |
| Peterson | $4,380 |
| Petrey | $4,534 |
| Phenix City | $2,828 |
| Phil Campbell | $3,749 |
| Piedmont | $3,511 |
| Pike Road | $3,032 |
| Pinckard | $3,254 |
| Pine Level | $3,092 |
| Pinson | $3,135 |
| Pisgah | $3,522 |
| Pittsview | $2,966 |
| Plantersville | $3,617 |
| Pleasant Grove | $3,094 |
| Point Clear | $9,645 |
| Powell | $3,570 |
| Prairie | $3,458 |
| Prattville | $2,934 |
| Priceville | $3,296 |
| Prichard | $5,824 |
| Princeton | $3,557 |
| Quinton | $3,618 |
| Rainbow City | $3,319 |
| Rainsville | $3,524 |
| Ralph | $3,143 |
| Randolph | $3,196 |
| Range | $4,729 |
| Red Bay | $3,556 |
| Red Level | $3,247 |
| Redland | $2,934 |
| Reeltown | $2,964 |
| Rehobeth | $3,274 |
| Remlap | $3,527 |
| River Falls | $3,248 |
| Riverside | $3,238 |
| Roanoke | $3,211 |
| Robertsdale | $5,666 |
| Rock Mills | $3,166 |
| Rockford | $3,177 |
| Rogersville | $3,516 |
| Russellville | $3,725 |
| Rutledge | $3,313 |
| Ryland | $4,618 |
| Safford | $4,076 |
| Saginaw | $4,215 |
| Saks | $3,344 |
| Salem | $2,906 |
| Samantha | $4,388 |
| Samson | $3,492 |
| Saraland | $5,396 |
| Sardis City | $3,530 |
| Satsuma | $5,423 |
| Sayre | $3,084 |
| Scottsboro | $3,460 |
| Seale | $3,034 |
| Selma | $3,503 |
| Selmont-West Selmont | $3,570 |
| Seminole | $5,633 |
| Shannon | $4,347 |
| Sheffield | $3,336 |
| Shelby | $2,865 |
| Shoal Creek | $2,726 |
| Shorter | $3,123 |
| Shorterville | $3,408 |
| Siluria | $4,198 |
| Silverhill | $7,899 |
| Sipsey | $3,670 |
| Skipperville | $3,374 |
| Slocomb | $3,427 |
| Smiths Station | $2,859 |
| Smoke Rise | $3,301 |
| Southside | $3,327 |
| Spanish Fort | $6,107 |
| Spring Garden | $4,815 |
| Spruce Pine | $3,802 |
| St. Elmo | $5,673 |
| St. Stephens | $3,806 |
| Stanton | $3,147 |
| Stapleton | $5,563 |
| Steele | $3,350 |
| Sterrett | $2,919 |
| Stevenson | $3,507 |
| Stewartville | $3,240 |
| Sulligent | $3,585 |
| Sumiton | $3,525 |
| Sunflower | $4,077 |
| Susan Moore | $3,586 |
| Sycamore | $3,209 |
| Sylacauga | $3,147 |
| Sylvania | $3,582 |
| Talladega | $3,157 |
| Tallassee | $2,978 |
| Tanner | $3,319 |
| Tarrant | $3,152 |
| Taylor | $3,194 |
| Theodore | $7,036 |
| Thomasville | $3,386 |
| Thorsby | $3,107 |
| Tibbie | $5,050 |
| Tidmore Bend | $3,328 |
| Tillmans Corner | $6,264 |
| Toney | $3,198 |
| Town Creek | $3,523 |
| Toxey | $3,295 |
| Trafford | $3,584 |
| Trenton | $3,505 |
| Trinity | $3,376 |
| Troy | $3,341 |
| Trussville | $2,974 |
| Tuscaloosa | $3,037 |
| Tuscumbia | $3,362 |
| Tuskegee | $3,179 |
| Tuskegee Institute | $3,171 |
| Tyler | $3,748 |
| Underwood-Petersville | $3,341 |
| Union Springs | $3,801 |
| Uniontown | $3,876 |
| Valhermoso Springs | $3,282 |
| Valley | $3,024 |
| Valley Grande | $3,563 |
| Valley Head | $3,646 |
| Vance | $3,172 |
| Vandiver | $2,912 |
| Vernon | $3,494 |
| Vestavia Hills | $2,898 |
| Vina | $3,665 |
| Vincent | $3,021 |
| Vinegar Bend | $5,022 |
| Wagarville | $5,108 |
| Walnut Grove | $3,555 |
| Ward | $4,210 |
| Warrior | $3,088 |
| Watson | $4,386 |
| Wattsville | $4,677 |
| Waverly | $3,017 |
| Weaver | $3,312 |
| Webb | $3,221 |
| Wellington | $3,415 |
| Weogufka | $3,271 |
| West End-Cobb Town | $3,373 |
| West Greene | $4,482 |
| Westover | $4,352 |
| Wetumpka | $2,925 |
| Whatley | $3,346 |
| White Plains | $3,311 |
| Wilmer | $5,511 |
| Wilton | $4,330 |
| Winfield | $3,673 |
| Wing | $4,492 |
| Woodstock | $3,212 |
| Woodville | $3,499 |
| York | $3,982 |
What homeowners are seeing in Alabama now
The cost of homeowners insurance in Alabama has gone up by 37% since 2021. The increase is blamed on rising insurance company expenses due to severe weather and higher construction costs.
Insurance tends to cost the most in Baldwin and Mobile counties, due to their proximity to the coast. In these counties, insurance companies may exclude coverage for wind and hail damage.
If your policy has these exclusions, you can usually get windstorm insurance through the Alabama Insurance Underwriting Association (AIUA). You can find an authorized AIUA agent near you on the organization’s website.
Insurance discounts for roofing upgrades
Alabama requires home insurance companies to give you a discount for strengthening your roof. You have to meet standards from groups like the Insurance Institute for Business and Home Safety (IBHS) to qualify.
The Strengthen Alabama Homes (SAH) program offers grants for roof improvements. The program’s online grant schedule explains how to get one.
Insurance protections for hurricanes and hailstorms
In most of Alabama, standard home insurance covers wind and hail damage, including hurricane-related wind and hail. Some policies have a higher deductible for wind damage than for other risks, such as fire or vandalism.
Standard homeowners insurance does not cover floods from any cause, including hurricanes. Instead, you need separate insurance for them.
Alabama flood insurance
Flood insurance costs an average of $934 a year in Alabama, or $78 a month. You usually pay more in areas with greater flood risks.
Your lender will require you to get flood insurance for a mortgage in a high-risk flood zone. It’s also often worth getting it in areas outside high-risk zones, because flooding is such a widespread risk.
Most people buy flood insurance through the government-run National Flood Insurance Program. The agents you contact for home insurance can usually help you get an NFIP quote.
A few private companies also offer flood insurance as an alternative to NFIP policies. Allstate, Neptune Flood and Wright Flood are good places to start for private flood insurance quotes.
Compare homeowners insurance companies in Alabama
Alabama’s high homeowners insurance costs make it important to shop around for the most affordable rate. Consider these tips as you compare quotes:
- Prepare to bundle: You usually get the best rates when you bundle your car insurance with your homeowners policy. Get quotes for both policies at the same time to see each company’s combined rate.
- Get your documents ready: Pulling up your current home and auto policy summaries can help you get quotes faster.
- Check the details: Your coverage limits may vary by company. However, you should make sure each quote shows accurate information about you and your home.
- Compare apples to apples: Your deductibles and coverage options should match up in each quote.
- Ask about discounts: Most companies apply some discounts to your quote, but you don’t want any to get overlooked.
How LendingTree helps you find the right policy
Shopping for home insurance isn’t always straightforward — especially when availability and pricing can vary widely. LendingTree makes it easier by helping you explore options from multiple insurers, so you can find coverage that fits your needs and budget.
How it works
Tell us about your home
Answer a few quick questions about your home, location and coverage needs.
Compare options from insurers
See quotes and typical rates from insurers that offer coverage in your area.
Choose the right policy
Review your options and pick the coverage that fits your needs and budget.
Frequently asked questions
Homeowners insurance is not mandatory under Alabama law. However, lenders typically require it for mortgages. Many homeowners associations (HOAs) also require it. It’s usually optional if you’ve paid off your mortgage and don’t have an HOA requirement.
Alabama home insurance usually does not cover flood damage. It doesn’t cover earthquakes, mudslides or other earth movements, either. In coastal areas with the greatest threats of wind damage, some policies don’t cover wind and hail damage. Separate insurance is available for each of these risks.
Shopping around for a cheaper rate is a good way to save money on homeowners insurance in Alabama. You can usually get a discount for strengthening your roof, and increasing your deductible can usually lower your rate. You can also talk to your agent to make sure you are not missing out on any discounts or paying for coverage you don’t need.
Methodology
How we chose the best homeowners insurance in Alabama
The rates shown in this article are based on an analysis of non-binding quotes obtained in February 2026 from Quadrant Information Services for sample homes in every Alabama ZIP code. Unless otherwise noted, policies include:
- Dwelling coverage: $400,000
- Other structures: $40,000
- Personal property: $200,000
- Loss of use: $80,000
- Personal liability: $100,000
- Guest medical payments: $5,000
- Deductible: $1,000
How we create LendingTree ratings
Our team of insurance experts evaluates insurance companies across several categories, including average rates, discounts, coverage options, third-party customer service ratings and app/website experience. We use this information to create LendingTree ratings, which help us identify and recommend the best insurance companies for consumers.
For third-party customer service ratings, we included NAIC’s Complaint Index scores and financial strength ratings from A.M. Best. NAIC Complaint Index scores show how well companies treat customers over things like claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.
See our home insurance ratings methodology and full editorial guidelines for further details.
**USAA is only available to current and former members of the military and their families.