Alabama Homeowners Insurance

Alabama homeowners pay $1,432 a year for homeowners insurance on average. That's 22% above the roughly $1,172 national average. That makes Alabama the 7th-most-expensive state for homeowners insurance in the country. Alabama sits in Dixie Alley with frequent tornado outbreaks and occasional Gulf hurricanes. The main factors driving that number are Tornadoes, Hurricanes, Severe thunderstorms and Hail. Flood risk is moderate; it's worth checking FEMA flood maps for your specific address before deciding whether a separate flood policy makes sense. Homeowners insurance isn't legally mandated in Alabama, but any mortgage lender will require it as a condition of the loan. Alabama also runs Alabama Insurance Underwriting Association, a state-backed option for homeowners who can't find coverage in the standard private market.