Cheapest Homeowners Insurance in Alabama (2024 Rates)

Although State Farm is the most affordable option for $100K in coverage among the companies we surveyed, a different Alabama insurer might be cheaper for your specific needs and buyer profile. For example, Auto-Owners is the budget-friendly choice for those seeking $500K in coverage, COUNTRY Financial for those with poor credit and Farmers for bundling auto and home insurance. MoneyGeek's extensive analysis will help you find the right fit for your home insurance needs.

In Alabama, State Farm offers the least expensive home insurance for $100K in dwelling coverage at $1,715 per year. Note that the cost of home insurance can vary significantly depending on your dwelling coverage. Here are the cheapest companies in Alabama for other coverage values:

• Cheapest for $100,000: State Farm at $1,715 per year
• Cheapest for $250,000: Auto-Owners at $2,956 per year
• Cheapest for $500,000: Auto-Owners at $4,671 per year

Use the table below to see how how costs change by dwelling coverage and find different company premiums for cheap home insurance.

Getting quotes from several insurance providers is the best way to find cheap home insurance in Alabama. Save time by using MoneyGeek’s home insurance calculator to get quotes in Alabama without having to provide your personal details upfront.

For high-value homes in Alabama, Auto-Owners offers the lowest rate for $750K in dwelling coverage at $6,173 per year. Generally, homes that cost more to rebuild need more dwelling coverage, and higher limits often come with higher premiums. Here are the most affordable options for higher limits:

• Cheapest for $750,000: Auto-Owners at $6,173 per year
• Cheapest for $1,000,000: State Farm at $8,448 per year

It's best to secure the dwelling coverage that's aligned with your home's replacement cost, rather than your property value. Explore the cost of home insurance for high-value homes with the table below.

The most affordable home insurance company in Alabama for a new home with $100K in dwelling coverage is State Farm, averaging $1,006 per year. Newly constructed homes tend to have lower insurance rates in Alabama due to their modern and code-compliant structures, which significantly reduce susceptibility to damages. Below are the cheapest companies with varying dwelling coverages for new homes:

• Cheapest for $100,000: State Farm at $1,006 per year
• Cheapest for $250,000: State Farm at $1,795 per year
• Cheapest for $500,000: State Farm at $2,857 per year

Find a company cost breakdown with different levels of dwelling coverage for newly constructed homes using the table below.

In Alabama, COUNTRY Financial provides the most affordable home insurance for those with low credit scores, costing an average of $2,492 annually for $100K in dwelling coverage. Insurers may use credit-based insurance scores to evaluate the likelihood of policyholders defaulting on payments, significantly affecting rates. The cheapest providers for Alabama homeowners with poor credit scores are:

• Cheapest for $100,000: COUNTRY Financial at $2,492 per year
• Cheapest for $250,000: COUNTRY Financial at $4,295 per year
• Cheapest for $500,000: COUNTRY Financial at $6,327 per year

The cost of home insurance often goes up when you have bad credit. For instance, with State Farm, those with a low credit score pay an average of $3,861 per year for $100K in dwelling coverage — $2,146 more than someone with good credit.

The most affordable home insurance company in Alabama for those with at least one claim within the past five years is State Farm at $1,873 per year. Those who have already filed a claim often pay higher premiums, since they're seen as more likely to file a claim again in the future.

Here are the lowest rates for several coverages:

• Cheapest for $100,000: State Farm at $1,873 per year
• Cheapest for $250,000: Auto-Owners at $2,956 per year
• Cheapest for $500,000: Auto-Owners at $4,671 per year

Having more claims on your record surely affects the cost of insurance. On average, home insurance in Alabama for those with no claims is $2,645 per year, but having two past claims can increase your yearly premium by approximately $776.

For a home with a frame construction type and a shake-treated roof, the cheapest insurer is State Farm, with an average annual premium of $1,715. Insurers often base costs on the risk associated with the materials used in your home's construction and whether it's more or less vulnerable to damage.

Here are the most cost-effective companies for different coverage values in Alabama:

• Cheapest for $100,000: State Farm at $1,715 per year
• Cheapest for $250,000: Auto-Owners at $2,851 per year
• Cheapest for $500,000: Auto-Owners at $4,503 per year

The most affordable combination of make and materials is a superior construction with a tile roof at $2,382. A frame construction and shake-treated roof is the priciest at $2,756.

By investing in high-quality construction and roofing materials, Alabama residents can significantly reduce their home insurance rates. This analysis is crucial in Alabama, where severe weather can cause considerable damage to homes constructed with lower-quality materials.

A home insurance policy with a $2,000 deductible in Alabama is cheapest with Farmers, costing an average of $1,410 per year. Adjusting your deductible can potentially save you hundreds yearly. A policy with a smaller deductible of $500, for instance, is cheapest with State Farm and costs approximately $1,852 per year.

For varying deductibles, these are the cheapest options:

• $2,000 deductible: Farmers at $1,410 per year
• $1,500 deductible: State Farm at $1,496 per year
• $1,000 deductible: State Farm at $1,715 per year
• $500 deductible: State Farm at $1,852 per year

In home insurance, a deductible is your initial payment before insurance provides the remainder. Based on our data, shifting from a $500 to a $2,000 deductible lets you save an average of $498 annually.

If you plan to bundle your auto and home insurance in Alabama, Farmers is the cheapest at an average of $1,868 per year, followed by Allstate with bundles averaging $2,250.

Bundling home and auto insurance with the same provider can result in significant savings. It also offers the convenience of managing both policies under the same insurer. Discover more about the best Alabama insurance bundles to start enjoying the benefits.

Farmers is the least expensive home insurance provider across more than one city in Alabama, with annual premiums averaging $1,365 in Mobile. The variation in cost between cities often relates to local factors like crime rates, building codes and potential weather hazards.

• The cheapest annual premium in the state is offered by Farmers in Huntsville at $1,365.
• In Mobile, COUNTRY Financial is the cheapest provider at $1,627 per year.

Even though some cities have higher average rates than others, shopping around is still an effective way to make sure you're getting the lowest rates where you live.