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Homeowners Insurance in Alabama

Amy Danise

It’s important to have the right insurance in Alabama if you own property. You don’t want to lose your investment if there’s a fire, flood or other disaster.

What does Alabama homeowners insurance cover?

A typical policy in Alabama will have these six main coverage types:

  1. Dwelling (Coverage A) for a house damaged or destroyed by a problem covered by the policy.
  2. Personal property (Coverage C) pays for belongings (such as furniture, clothing and decorations) that are damaged, stolen or destroyed.
  3. Other structures (Coverage B) pays for damaged or destroyed structures not attached to a house, such as garages, storage sheds and fences.
  4. Loss of use (Coverage D) pays for additional living expenses such as hotel and restaurant bills if you must temporarily move because of damage to the house.
  5. Personal liability (Coverage E) pays if you are legally responsible for someone else’s injury or property damage and pays to defend you in court against liability lawsuits.
  6. Medical payments to others (Coverage F) pays medical bills of people hurt on your property. 

How much is Alabama home insurance?

The average Alabama homeowners insurance premium is $1,386 for a typical policy, according to the National Association of Insurance Commissioners. That’s more than the nationwide average of $1,192.

Alabama Homeowners Bill of Rights

Alabama has a law that outlines the rights you have as a policyholder, known as the Homeowners Bill of Rights. Highlights include:

  • You have the right to receive in writing from your insurance company the reason for any cancellation of coverage and a minimum number of days’ notice of cancellation of coverage, subject to applicable federal or state insurance law and regulation.
  • You have the right to cancel your policy and receive a refund of any unearned premium.
  • You have the right to a written notification, at renewal, describing changes in your insurance contract language that are applicable to the renewal period.
  • You have the right, in the event of a claim, to reject any settlement amount offered by the insurance company.
  • You have the right to select a licensed contractor or vendor to repair, replace, or rebuild damaged property covered by the insurance policy.
  • You have the right to file a written complaint against any insurance company with the Alabama Department of Insurance and to have that complaint reviewed by the Department of Insurance.

How do I get flood insurance in Alabama?

Flooding can be the most destructive element of a hurricane. In Alabama, you can buy flood insurance through the National Flood Insurance Program (NFIP). You can also buy “excess” flood insurance, which gives you additional coverage above an NFIP policy, from:

Home insurance shopping tip

Whether you’re looking to buy a home or already own one, shopping around for home insurance quotes can help you save money.

Largest home insurance companies in Alabama

Rank in Alabama Company name Market share % in Alabama
1 State Farm 28.18
2 Alfa Mutual Group 13.51
3 Allstate Corp. 11.8
4 USAA 8.23
5 Farmers Insurance 4.84
6 Travelers 4.19
7 Liberty Mutual 3.53
8 Nationwide 2.65
9 Auto-Owners Insurance 2.55
10 COUNTRY Financial 2.2
11 The Cincinnati Insurance Cos. 2.11
12 Progressive 1.85
13 MetLife 1.42
14 Assurant 1.35
15 Centauri Insurance 1.32
16 Munich Re 0.96
17 GeoVera Holdings 0.9
18 Clear Blue Insurance 0.79
19 Chubb 0.77
20 American Family Insurance 0.72
21 The Hartford 0.71
22 Auto Club Exchange 0.7
23 PURE 0.57
24 AIG 0.42
25 Universal Insurance Holdings Inc. 0.42
26 American National 0.36
27 State Auto 0.34
28 QBE 0.33
29 FEDNAT 0.29
30 National Security Group Inc. 0.2
31 First Protective Insurance Co. 0.18
32 Armed Forces Insurance Exchange 0.16
33 Spinnaker Insurance Co. 0.14
34 Enstar 0.14
35 Markel 0.14
36 Amica 0.13
37 Kinsale Insurance Co. 0.12
38 IAT Insurance 0.12
39 Horace Mann 0.1
40 Heritage Insurance 0.1
41 New Holdings Inc. 0.09
42 EMC Insurance 0.06
43 Canopius US Insurance Inc. 0.06
44 National General Holdings Corp. 0.06
45 First Acceptance 0.03
46 Randall & Quilter Investment Holdings 0.03
47 California Casualty 0.02
48 Gulf States Holdings Inc. 0.02
49 Prime Insurance 0.02
50 ECFPK Insurance Holdings LLC 0.02
Source: S&P Global Market Intelligence, based on premiums written in 2018 for homeowners insurance.