Alabama Homeowners Pay Some of the Lowest Insurance Costs In The Country

"Alabama homeowners are benefiting from some of the lowest homeowners insurance costs in the United States, even as national rates continue to climb. Newly released data from the Census Bureau and the Realtor.com® 2025 Climate Risk Report show that while many Americans worry about affordability, Alabama households tend to pay less for coverage compared to most neighboring states. Along with being ranked No. 8 on the list of most affordable states for one-income earners, Alabama is increasingly becoming more desirable given it's affordability."

"According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Alabama homeowners with a mortgage typically spent between $1,500 and $1,999 annually on homeowners insurance, while those without a mortgage paid a bit less: $1,000 to $1,499. That puts the state's average lower than Florida, where mortgaged homeowners often spend $2,000 to $2,499 per year, and more in line with nearby Mississippi and Georgia."

Alabama homeowners experience relatively low homeowners insurance costs even as national rates rise. American Community Survey data from the U.S. Census Bureau shows mortgaged homeowners in Alabama typically pay $1,500–$1,999 annually, while homeowners without a mortgage pay $1,000–$1,499. Those averages are lower than Florida, where mortgaged homeowners often pay $2,000–$2,499, and align with neighboring Mississippi and Georgia. Alabama ranks No. 8 among the most affordable states for one-income earners. Realtor.com’s 2025 Climate Risk Report and Census data indicate affordability is contributing to Alabama’s growing desirability for prospective homeowners.

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