The Best Home Insurance in Alabama for 2025

Chubb and USAA are the best home insurance companies in Alabama, according to our analysis.

To help you find the best home insurance in Alabama, we gathered and analyzed data from insurance companies across the state. These are the insurers that earned 4.5 stars or more.

Rates are based on a sample homeowner with no recent claims, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

» MORE: The best home insurance companies

Here's more information about the best homeowners insurance companies in Alabama.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

Chubb caters to affluent homeowners, offering coverage other insurers often charge extra for. For example, the company’s policies include extended replacement cost coverage for the structure of your home. This is useful in case it costs more than your dwelling limit to rebuild after a disaster. Chubb’s standard policies also cover water damage from backed-up sewers and drains.

Chubb policyholders with secondary or seasonal homes in Alabama are eligible for the company’s Property Manager service at no charge. With this service, a Chubb representative will check your home after a hurricane and report its condition to you. They can also help prevent further damage and submit a claim on your behalf.

» READ MORE: Chubb homeowners insurance review

Amica shines when it comes to customer service. It draws a very low rate of complaints compared to other insurers, according to the National Association of Insurance Commissioners. Amica also earned high marks in two recent J.D. Power surveys about home insurance and customer satisfaction.

The company stands out for its broad range of coverage options. For example, you can customize your policy with extra coverage above your dwelling limit. This could be useful in case your house costs more to rebuild than expected. You may also want to add coverage for identity theft or damage from backed-up drains.

» READ MORE: Amica homeowners insurance review

If you want to do business with companies that value sustainability, consider Cincinnati Insurance. In recent years, the insurer has reduced fossil fuel emissions from both its facilities and company vehicles. When you buy Cincinnati home insurance, you may be able to add a “green upgrade” endorsement. With this coverage, you can use eco-friendly materials to repair or rebuild your home after a claim.

The company offers a variety of other options, including comprehensive coverage for high-value homes. You may be able to add coverage for things like identity theft, personal cyber attacks or certain types of water damage.

» READ MORE: Cincinnati homeowners insurance review

As America’s largest home insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home.

You may be able to add coverage for things like identity theft and water damage from backed-up drains. Another option may be to add an inflation guard rider to your policy. This automatically increases your policy limits to keep up with rising costs.

State Farm offers a free Ting smart plug to home insurance policyholders as a perk. This device monitors your home’s electrical network to help prevent fires.

» READ MORE: State Farm homeowners insurance review

Country Financial has multiple levels of homeowners coverage to help you choose the package that’s best for you. You can also add extra coverage for the structure of your home, in case your policy limit isn’t enough to cover the cost of rebuilding.

Country Financial sells homeowners insurance through local representatives. The company draws a very low rate of consumer complaints to state regulators.

» READ MORE: Country Financial homeowners insurance review

Allstate offers lots of ways to customize your policy, including replacement cost coverage for your personal property and coverage for water damage caused by backed-up drains. Other options may include home-sharing coverage and reimbursement for replacing damaged items with energy-efficient versions.

You may also be able to upgrade your policy with the Enhanced Package. One benefit of this package is Deductible Rewards, which takes $100 off your deductible when you sign up, plus an additional $100 off for each year you go without filing a claim. If you do file a claim, your rates won’t go up.

» READ MORE: Allstate homeowners insurance review

Openly’s default homeowners policy goes significantly beyond those of many other insurers. Most notably, it offers guaranteed replacement cost coverage for the structure of your home. That means if your house is destroyed by a covered disaster, Openly will pay whatever it takes to rebuild it the way it was before.

Unlike many other insurers, Openly doesn’t have dog breed restrictions that could affect your ability to get liability coverage. It may also be a good bet for homeowners with collections of jewelry or other valuables, with up to $100,000 of blanket coverage available for these items.

» READ MORE: Openly homeowners insurance review

USAA sells homeowners insurance to active military members, veterans and their families. If that’s you, you may want to consider USAA.

The company offers some perks that are specific to members of the military, like deductible-free coverage for military uniforms and equipment. USAA will also waive your deductible if your personal property is damaged or lost due to war.

USAA homeowners insurance has certain features that many insurers charge extra for. For example, USAA covers your personal belongings on a replacement cost basis. That means you’ll get enough money to buy brand-new replacements for damaged items. Many companies pay only what your items are worth at the time of the claim.

The average annual cost of home insurance in Alabama is $3,420. That’s 62% more than the national average of $2,110.

In most states, including Alabama, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Alabama, those with poor credit pay an average of $5,820 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 70% more than those with good credit.

» MORE: How your credit score affects home insurance rates

How much you pay for home insurance in Alabama will depend on your ZIP code. For example, the average cost of homeowners insurance in Birmingham is $3,390 a year, while homeowners in Mobile pay an average of $4,430 per year.

» MORE: What’s the average cost of homeowners insurance?

Here are the insurers we found with average annual rates below the Alabama average of $3,420.

» MORE: The cheapest homeowners insurance

As a homeowner in Alabama, you may face certain risks. Here are a few of the most common, along with ways to insure your home against them.

Hurricanes and tropical storms

Hurricanes and tropical storms can cause significant damage to your home and property. Your policy likely covers wind damage, but you may have a separate wind, hail or hurricane deductible. (A deductible is the amount subtracted from your claim payout.)

For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for wind claims. So if your house has $200,000 worth of dwelling coverage, you’d be responsible for the first $2,000 of wind damage.

Hurricanes can also cause flood damage, which most homeowners insurance doesn’t cover. If you live in a high-risk area, you’ll likely need a separate policy for flood insurance as well.

» MORE: Complete guide to hurricane insurance

Flooding

Usually, homeowners insurance policies don't cover flood damage. So if you live in an area at risk of flooding, consider buying flood insurance. While you can buy flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect.

To check your flood risk, start by looking up your address on the Federal Emergency Management Agency's flood maps. However, FEMA’s maps don’t always capture all types of flood risk. You may want to check another source, like First Street, a private company that models climate hazards. Enter your address at the top of the page to see your home’s flood risk rating on a scale of 1 to 10.

» MORE: How to find the best flood insurance

Tornadoes

Your homeowners insurance policy probably covers tornado damage. Still, it’s important to review your policy so you understand how your coverage works. Some policies have a separate deductible for wind damage, which would mean potential extra costs for you in case of a claim. Learn more about tornadoes and homeowners insurance.

» MORE: Home insurance calculator: Estimate your rate

Alabama insurance department

The Alabama Department of Insurance oversees the state’s insurance industry and provides consumer protections. On its site, you can search for licensed insurance companies, find information about disaster prep and read the state’s bill of rights for policyholders. You can also file a complaint about your insurance company on the site. Call the agency’s consumer services hotline with insurance questions at 800-433-3966.

How we rate homeowners insurance

NerdWallet’s star ratings reward companies for consumer-first features and practices. We evaluate factors such as consumer experience, coverage, discounts and financial strength.

In our research, we analyzed:

View our complete homeowners insurance rating methodology.