Insurance
Alabama Homeowners Insurance Calculator: Free Cost Estimator (2024)
Updated: November 10, 2024
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Dec 21, 2024
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MONEYGEEK EXPERT TIP
If you are looking for affordable homeowners insurance in Alabama, MoneyGeek reviewed rates from various insurers in the state.
MoneyGeek also researched the best homeowners insurance in Alabama if you want to strike a balance between price and affordability. We examined quotes from various companies to help you identify the provider that most closely corresponds to your needs.
How to Estimate the Cost of Your Homeowners Insurance Policy in Alabama
When it comes to homeowners insurance costs in Alabama, prices vary depending on different factors. Your location, deductible, credit score and more will impact your premium.
By entering your specific information into MoneyGeek’s Alabama home insurance calculator below, you can get a personalized estimate of your homeowners insurance policy costs.
Alabama
Your homeowners insurance costs will vary based on where you live. If you live in a location with a higher risk of theft, natural disasters or fires, your premium will likely be higher than someone who lives in a state with fewer potential risks.
Dwelling Coverage
Dwelling coverage corresponds with how much it would cost to rebuild your home. Depending on how much dwelling coverage you include in your policy, the cost of homeowners insurance may vary. High dwelling coverage limits on insurance policies provide greater damage protection at a higher cost.
In Alabama, the average dwelling coverage amount is $100K.
Deductible
The amount of money you have to contribute to a covered claim is known as your deductible.
For instance, if your home insurance deductible is $1,000 and you have a claim that is covered for $10,000, you are responsible for paying $1,000. Your insurance company will cover the remaining $9,000 of the claim.
If you want a lower monthly premium, you can choose a higher deductible.
Liability
If someone is hurt or their property is damaged in your home due to your negligence, liability insurance will cover these costs.
Liability insurance can cover legal, replacement, medical, pain and suffering and death benefits costs.
You should invest in enough liability insurance to protect your assets. That said, raising your liability limits by tens of thousands of dollars could only cost you a few dollars a month.
Personal Property
Your personal property includes both items inside and outside of your home. This is the part of your policy that provides compensation if your belongings are damaged or stolen.
You can use the calculator below to estimate how much personal property coverage you need. This can help ensure you have adequate coverage.
Credit Score
Your credit score is also one of the variables considered when calculating insurance prices in Alabama. Homeowners with poor credit scores are more likely to file a claim. As a result, insurers see them as riskier to insure. The cost of your homeowners insurance in Alabama is higher if you have a low credit score.
Personal Property Coverage Calculator
When figuring out how much renters insurance you need, experts recommend the standard $100,000 in liability insurance and enough personal property protection to cover your possessions. Use MoneyGeek's calculator to estimate the value of your possessions so you know how much personal property coverage to buy.
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Average Cost of Home Insurance in Alabama
Alabama is one of the most expensive states for buying home insurance. For $250K dwelling coverage, the average Alabama homeowner can anticipate paying around $3,328 per year. That’s 33% more than the national average.
If you require more or less dwelling coverage, you may refer to the table below which displays the typical cost per level of coverage in Alabama.
Average Annual Premium in Alabama for Homeowners Insurance
| $100,000 | $3,660 |
| $250,000 | $3,758 |
| $500,000 | $10,550 |
| $750,000 | $17,150 |
| $1,000,000 | $28,478 |
| $2,000,000 | $70,749 |
| $3,000,000 | $114,213 |
MONEYGEEK EXPERT TIP
It’s important to purchase enough dwelling insurance to cover the expense of reconstructing your home. It's crucial to consider how much dwelling coverage you need before buying homeowners insurance.
The overall replacement cost of your home is influenced by a number of factors, including height, square footage, building materials and more. You can have an appraiser help you calculate potential rebuilding costs.
Remember that your focus should be on how much money you would need to spend to entirely rebuild your home in the case of a total loss.
Average Cost of Home Insurance in Alabama Cities
Depending on where you reside in Alabama, the price of homeowner insurance can vary significantly. You can see how much rates can vary from city to city by looking at the MoneyGeek table below, which displays the premiums for various Alabama cities.
Average Annual Premium in Alabama Cities for Homeowners Insurance
| Birmingham | $1,956 | $2,024 |
| Huntsville | $3,875 | $6,501 |
| Mobile | $5,341 | $8,771 |
| Montgomery | $3,468 | $5,685 |
MONEYGEEK EXPERT TIP
The best homeowners insurance in Alabama, according to MoneyGeek's analysis, is provided by Allstate.
It’s important to look for an insurer that strikes a balance between price and service if you want to get the best homeowners insurance company. MoneyGeek provides a deeper analysis of which are the best homeowners insurance companies depending on your needs.
Frequently Asked Questions About Home Insurance in Alabama
Depending on your personal profile, your home and your insurer, Alabama homeowners insurance costs can fluctuate. MoneyGeek answered the following frequently asked questions about homeowners insurance in the state to help you as you shop for a policy.
How much does homeowners insurance cost in Alabama?
One of the states with the highest homeowners insurance rates is Alabama. For $250K in dwelling coverage, the average cost of homeowners insurance in Alabama is $3,328 annually.
How do I know how much dwelling coverage to get?
Alabama’s baseline dwelling coverage is $100,000. However, you must determine how much it would cost to reconstruct your home in order to decide how much dwelling coverage you should buy. This involves identifying the current prices for labor, materials and construction. An appraiser or your real estate company should be able to help you with this.
Insurance
Methodology
To determine the average cost of homeowners insurance in Alabama, MoneyGeek sourced pricing data from Quadrant Information Services.
MoneyGeek chose a standard home profile to provide the most reliable and relevant data to develop a thorough analysis of home insurance. This standard home profile consists of these attributes:
- Construction year: 2000
- Construction type: Frame
- Composition roof
- Three-mile radius from the fire department
- Assumed value of other structures on the property: 10% of the dwelling coverage
- Personal property coverage: 40% of the dwelling coverage
- Liability limit: $100,000
- Deductible: $1,000
About Mark Fitzpatrick
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.