Alabama may be known for Southern hospitality, Gulf Coast beaches and some serious football fans, but it also has a few hazards to look out for. Alabama homeowners should make sure they have insurance coverage for hurricanes, tornadoes and other natural disasters that could strike their homes.

NerdWallet analyzed rates from insurers across the state to determine the best homeowners insurance 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.

The best homeowners insurance in Alabama

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

More about the best home insurance companies in Alabama

See more details about each company to help you decide which one is best for you.

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

Learn more with our Farmers homeowners insurance review.

As America’s largest 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 after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.

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

Learn more with our State Farm homeowners insurance review.

Cincinnati Insurance sells homeowners policies through independent agents, with various options for standard and high-value homes. You may be able to add coverage for issues like identity theft, personal cyberattacks or certain types of water damage.

Cincinnati may offer you a discount for bundling home and auto insurance, having a newer home, installing a centrally monitored alarm system or going a certain amount of time without filing a claim.

Learn more with our Cincinnati Insurance homeowners insurance review.

Country Financial has three levels of homeowners coverage to help you choose the package that’s best for you. You also have the option to add extra coverage for the structure of your home, in case inflation drives up the cost of rebuilding more than you expect.

Country Financial sells homeowners insurance through local representatives. The company has drawn far fewer complaints than expected to state regulators, according to the National Association of Insurance Commissioners.

Learn more with our Country Financial homeowners insurance review.

Nationwide’s standard homeowners policies include ordinance or law coverage, which pays to bring your home up to the latest building codes after a covered claim. They also include coverage for unauthorized credit or debit transactions. For an extra cost, you may be able to add coverage for things like water backup, identity theft and stronger materials to replace your roof.

The Nationwide website offers plenty of ways to manage your policy, including filing and tracking claims, paying bills and getting quotes.

Learn more with our Nationwide homeowners insurance review.

USAA sells homeowners insurance to veterans, active-duty military members and their families. If that description fits you, you may want to consider a USAA policy. The company’s homeowners insurance has certain features that other insurers may charge extra for.

For example, USAA automatically covers your personal belongings on a “replacement cost” basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy new replacements for your stuff.

Learn more with our USAA homeowners insurance review.

How much does homeowners insurance cost in Alabama?

The average annual cost of home insurance in Alabama is $2,385. That’s 31% more than the national average of $1,820.

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 $4,420 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 85% more than those with good credit.

» MORE: How your credit score affects home insurance rates

Average cost of homeowners insurance in Alabama by city

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 $2,270 a year, while homeowners in Mobile pay an average of $2,690 per year.

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

The cheapest home insurance in Alabama

Here are the insurers we found with average annual rates below the Alabama average of $2,385.

» MORE: The cheapest homeowners insurance

What to know about Alabama homeowners insurance

Alabama faces more than its share of risks for homeowners. When shopping for homeowners insurance, you’ll want to consider hurricanes, flooding and tornadoes.

Hurricanes and tropical storms

With its Gulf Coast location, Alabama is susceptible to hurricanes and the property damage that comes with them. For example, in 2004, Hurricane Ivan passed through Alabama, causing 117 tornadoes over three days due to the high winds. These severe weather events can cause significant damage to your home.

Review your policy to see what coverage you have. 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 yourself.

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

Beyond the hurricanes and tropical storms mentioned above, Alabama homeowners may experience flooding due to any type of heavy rain. Because standard homeowners insurance policies don’t pay for flood damage, you’ll want to consider purchasing flood insurance if you live in a flood-prone area.

To find out whether you’re at risk, check the Federal Emergency Management Agency's flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Because flooding can happen anywhere if it rains hard enough, you may want to consider buying flood insurance even if you’re in a relatively low-risk location.

Note that while you can purchase flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect.

» MORE: How to find the best flood insurance

Tornadoes

Parts of Alabama are likely to experience tornadoes, as the state sits in Dixie Alley, Tornado Alley’s Southeastern counterpart. The forceful winds from a twister can damage or even destroy a house.

Your homeowners insurance policy probably covers tornado damage. Still, as with the hurricane wind damage discussed above, it’s important to review your policy to determine how much coverage you have. Some policies have a separate deductible for wind damage, meaning potential extra costs for you in case of a claim.

» 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 and access information for homeowners. If you have a complaint about your insurance company, you can file it online with the department. You can also call the agency’s consumer services hotline with insurance questions at 800-433-3966.

Looking for more insurance in Alabama?

• Cheap car insurance in Alabama.

• Cheap car insurance in Birmingham.