Alabama Homeowners Insurance Coverage

From storm-prone Mobile to bustling Birmingham, your home is your haven. A Farmers Smart Plan Home® policy can help you protect it, with discounts to help you save.

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Is homeowners insurance required in Alabama?

No, homeowners insurance is not required by law in Alabama. However, in order to get a home loan, your mortgage lender will likely require you to obtain a certain amount of insurance coverage.

What does homeowners insurance cover in Alabama?

Every policy is different, but home insurance policies in Alabama typically come with several standard coverages.

  • Dwelling (Coverage A). This coverage helps you pay for damage to your home from a covered event, such as a fire, windstorm, lightning or hail.

  • Other structures (Coverage B). This coverage is intended to help cover structures that aren’t connected to your home, like a fence or shed.

  • Personal property (Coverage C). This coverage helps you repair or replace your personal belongings if they are stolen or damaged.

  • Loss of use, or additional living expense coverage (Coverage D). This coverage can help you pay to stay somewhere else if your home is uninhabitable due to covered damage.

  • Personal liability (Coverage E). This coverage helps pay for accidental property damage or injuries you cause through negligence.

Typical home insurance policies in Alabama cover damage caused by:

  • Fire
  • Vandalism and theft
  • Lightning strikes
  • Wind
  • Hail
  • Explosions
  • Falling objects
  • The weight of snow or ice

Flooding, a common risk in parts of Alabama, is not covered. However, special flood insurance through the National Flood Insurance Program (NFIP) may be available. 

Home insurance coverage options in Alabama

Farmers® gives you multiple options for covering your home and personal property. You can customize your policy to suit your lifestyle and dwelling type:

Learn more about Smart Plan Home coverage

How much does homeowners insurance generally cost in Alabama?

The average premium for home insurance coverage in Alabama is $1,501 per year1, according to a 2020 report (the most recent data available) by the National Association of Insurance Commissioners (NAIC). However, insurance costs in most states have changed since then. Also, the amount you pay may be different depending on things like the value and age of your home, how much personal property you want to cover, what deductible you choose and risks specific to your area.

Alabama home insurance discounts

Farmers offers a variety of savings opportunities for eligible home insurance customers in Alabama, including:

  • Multi-policy
  • Protective devices
  • Non-smoker

See more information and additional discounts that may be available in Alabama.


Alabama’s state bird, formally the northern flicker, goes by yellowhammer because of its bright color and habit of hammering trees with its beak.
Encyclopedia of Alabama

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What Does an Umbrella Insurance Policy Cover?

It’s additional coverage over your existing insurance limits, and it can be an affordable way to help you protect your home, cars, boats and other possessions if you’re sued.

1 Based on average premium for HO-3 type open perils homeowners policies.