Claire Smith Last Updated On: February 13, 2024

Everything You Need to Know About Home Insurance in Alabama

Your home is your most valuable asset, which is why home insurance is so important. It helps protect your house, your belongings, and even other structures on your property. No one likes thinking about what could happen, but taking an hour or two to get the information you need to protect your home and assets is worth it. 

And don’t worry, we’ll make it as painless as possible!

So here’s what you should know about homeowners insurance in Alabama, from cost to coverage and everything in between. 

Table of Contents

How Weather Impacts Home Insurance in Alabama

Because of the range of weather conditions that can affect the state, home insurance is critical. Alabama might be a temperate state, but it can experience severe weather conditions affecting even the toughest homes.  Since Alabama is so close to the coastline, the Yellowhammer State is particularly prone to:
  • Tornadoes
  • Flooding
  • Tropical storms
  • Hurricanes
You read that right: the state is vulnerable to both tornadoes and hurricanes, due to its location. Although Alabama isn’t in the Tornado Alley, it actually had the second-highest number of tornadoes in 2021. And because it’s on the Gulf Coast, it can also get hit pretty severely by hurricanes.  But fear not, this is why you have home insurance in place. Keep reading for more information on home insurance in Alabama. 

Home Insurance Coverage Types in Alabama

Homeowners insurance in Alabama typically includes six key aspects:

  1. Dwelling: This covers the structure of the home, such as the foundation, walls and roof.
  2. Personal property: This covers your personal belongings in the home that might be damaged from fire, theft, etc.
  3. Liability: This protects you if someone is injured on your property.
  4. Medical costs: This helps cover the medical costs if someone is injured on your property.
  5. Additional living expenses: This helps cover the cost of living elsewhere while your home is being repaired.
  6. Other structures: This covers additional structures on your property like a shed or garage.

Your personal policy may not include all aspects, or they might not be covered from all perils (types of damage). Your policy will also have monetary limits on each category so that you’re covered up to a certain amount. 

This is why it’s so important to understand exactly what type of policy you’re purchasing and what it covers before something happens to your home. 

The more you know!

The Average Cost of Home Insurance in Alabama

Now that you know that home insurance is important in Alabama, you’re probably curious to know the cost. 

The good news is that home insurance in Alabama is more affordable than you might think, despite the severe weather that the state experiences. And it’s certainly possible to find affordable insurance in Alabama that still gives you the coverage you need.

The cost of home insurance in the state averages $1,597 per year for $250,000 of dwelling coverage (for the average person with a good claims history). This is slightly higher than the national average cost, but it makes sense given the high risk of severe weather in the state. 

Getting multiple home insurance quotes is your first step to getting the best home insurance for you. Keep reading for more tips on saving money (who doesn’t love that?). 

Home Insurance Discounts in Alabama

Home insurance doesn’t have to break the bank. Finding cheap homeowners insurance in Alabama is possible, thanks to these easy steps.
  • Never take the first quote you find. Always compare multiple quotes from different providers to ensure you’re getting the best deal.
  • Ask for discounts. Common home insurance discounts can include:
    • Veterans discount
    • Good student discount
    • Multi-policy discount (eg. having home and auto insurance with the same provider)
    • Membership/employer discounts (some providers offer discounts to certain groups or companies)
    • New home discount
    • Discounts for safety features like an alarm system or automatic fire sprinkler
    • Paperless discount (for switching to e-billing)
    • And more
    • Bundle multiple policies (such as home and life) with one provider for savings.
    • Reduce high risk items around your home (trampoline, wood stove, etc.) and keep up to date on general maintenance.
    • Save yourself time and money by getting access to free quotes fast with ConsumerCoverage.
    And remember: never let your insurance policy auto-renew without reviewing the coverage and checking for better quotes. You want your home insurance to protect you, not empty your bank account. More tips on policy renewals here.

Alabama Home Insurance Exclusions

From Mobile to Montgomery, understanding your coverage is key—especially when there might be exclusions that you’ll want to know about. 

For example, flooding from hurricanes and tropical storms is common in Alabama, but flooding is almost always excluded from home insurance coverage. You will likely need to purchase separate flooding insurance if you want the protection. 

This is particularly important in Alabama, since the state has over 132,000 miles of river and could easily be nicknamed “the River State”. Flooding from the vast network of rivers is common, but it can quickly drain your bank account. Getting additional flooding coverage is a smart way to protect your home and belongings.

Is Home Insurance Right for You?

It’s also worthwhile to note that home insurance isn’t always the right policy choice. 
  • If you’re a renter (even if it’s a house), you’ll want renters insurance.
  • If you’re a landlord renting out the house to tenants, you’ll actually need landlord insurance.
  • If you’re renting your own home for short-term renters/vacationers, you’ll need short-term rental insurance.
Not having the right type of policy in place could mean any damages might not be covered under the policy, so it’s worthwhile to check with an insurance agent before choosing a policy. 

What to Know About Named vs. Excluded Perils in Home Insurance

Here’s something not everyone might know about their home insurance policy: make sure that you check your policy for “named” versus “excluded” perils. 

More generous policies will only list the losses that are excluded (like flooding, typically) and you can assume everything else is covered. But other home insurance policies will only cover the damage types that are named, so this is something you’ll want to be aware of before signing on the dotted line.

How to Get Homeowners Insurance in Alabama

Getting your home insurance policy in the Yellowhammer State is simple. You can either call your current insurance agent and ask them to add a home insurance policy, or (better yet), you can get quotes online quickly. Simply enter some basic information about yourself and your home, and you’ll be able to get quotes on the home insurance coverage you want. 

Browsing home insurance quotes online helps you get a sense of what you can expect to pay annually. It also lets you shop around for the best coverage. You can also make it easier on yourself by getting access to free quotes fast with ConsumerCoverage so that you know you’re getting the best rate possible. 

The Best Homeowners Insurance in Alabama: Key Takeaways

“Sweet Home Alabama” isn’t just a catchy song, it’s your cue to get home insurance in Alabama to help protect your sweet, sweet home. While home insurance in Alabama isn’t necessarily required (unless by your mortgage), it’s a wise move given the climate and frequency of storms. 

Like grits and Royal Reds are state staples, so is homeowners insurance in Alabama. In fact, home insurance is so important in the state that the number of people that have home insurance in Alabama is higher than the national average. Luckily, cheap home insurance in Alabama does exist and you now know how to get it. 

Ready to check home insurance off your to-do list? Make it easy on yourself by getting access to free quotes now with ConsumerCoverage so you can get the coverage you want before you need it. 


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