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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Alabama: average premium, 2023 $1,906 a year in Alabama vs. $1,737 countrywide · 12th highest of 51 · All states (HO-3 policies; NAIC)

Alabama's market right now

Hurricane Isaias (October 2026). On Oct. 9, 2026, the Alabama Department of Insurance (ALDOI) said loss models showed the storm "could be a $500 million to $2 billion loss event," and that if the storm kept its path and intensity, Alabamians "could make up as much as 21% of that loss." If you have damage, ALDOI says "your first call should be to your agent," and its Consumer Services Division can help at (334) 241-4141 or (800) 433-3966.

AIUA policy counts are falling. The AIUA's own figures show 16,979 policies in force in July 2025 and 14,180 in July 2026, a drop every month in between. Total insured value fell from about $7.02 billion to about $6.26 billion over the same year.

FORTIFIED homes are common on the coast. ALDOI says Alabama "is home to more than 68,000 IBHS Fortified designations within ten miles of the Alabama coast." A University of Alabama study commissioned by ALDOI found that after Hurricane Sally in 2020, FORTIFIED homes had fewer and smaller claims than conventionally built homes.

New consumer protections in 2025-2026. ALDOI issued a bulletin that limits cancellations, nonrenewals and surcharges after weather claims, and another on insurers' use of aerial images. Both are explained below.

You can compare sample homeowners premiums from different companies on ALDOI's Homeowners Premium Comparisons page. ALDOI notes that the premiums shown "do not include surcharges or discounts" and that "Actual premiums may vary." [8][11][12][13][14][15][16]

Last-resort coverage: the AIUA

The Alabama Insurance Underwriting Association (AIUA) is Alabama's coastal last-resort market. State law (Ala. Code 27-1-24) makes every insurer that writes fire and extended coverage in Alabama a member.

• Where: only "south of the 31st parallel in Baldwin and Mobile counties." Use the AIUA address lookup to check a property.
• What it covers: mainly wind, hail and hurricane. A policy "providing only the perils of hurricane, windstorm and hail coverage is also available," and since Jan. 1, 2017, AIUA issues fire policies "only on a limited basis" to properties it insured that way before and after that date. A wind-only applicant must show proof of the "essential underlying fire and extended coverage" from another company.
• Who it's for: AIUA's rules say it serves people "who do not qualify for coverage through the standard insurance market."
• Limits: up to $650,000 on a home and $325,000 on contents (raised Nov. 1, 2025, from $500,000 and $250,000).
• How to apply: only through an AIUA-authorized agent; "consumers must contact an AIUA Authorized Agent." Find one on the AIUA agent list.
• Flood: if the property is in flood zone A or V, AIUA requires flood insurance at least equal to the AIUA limits or the National Flood Insurance Program (NFIP) maximum.

See our AIUA page for deductibles, discounts, payments and claims. [1][5][17][18][19]

If your insurer drops you or changes your coverage

120-day notice for mass nonrenewals and wind restrictions. ALDOI Rule 482-1-136 applies to authorized (state-licensed) insurers writing residential or commercial property insurance in Alabama. It covers two things:

• a "non-renewal of coverage," meaning a decision to drop "a category or group of existing insureds" because the insurer wants "to reduce its exposure to a potential catastrophic event, including but not limited to a hurricane"; and
• a "coverage restriction," meaning adding a wind exclusion or a hurricane deductible, or raising a hurricane deductible, for a group of policyholders when it "is not a result of prior claims history."

For either one, the insurer must send you written notice "no less than one hundred and twenty (120) days" before the renewal or expiration date. It must also notify the Insurance Commissioner at least 150 days ahead.

No dropping you just for a weather claim (since Jan. 1, 2026). ALDOI's revised Bulletin 2025-08 says an insurer "shall not cancel or non-renew" a personal or commercial property policy "if based solely on a claim arising from a catastrophe, natural disaster, acts of nature, weather-related causes." For new policies from March 15, 2026, and renewals from May 15, 2026, insurers also may not add a surcharge, or move you to a higher-priced tier or affiliated company, solely because of such a claim. The bulletin applies to admitted insurers and to the AIUA. It still allows cancellation or nonrenewal when there are "additional substantial reasons" such as "concealment, misrepresentation, or fraud," and it still lets an insurer remove a claims-free discount after a weather claim.

Nonrenewals based on aerial photos. ALDOI Bulletin 2025-03 (June 17, 2025) says "blurry or older images that appear to show staining or discoloration of shingles will usually not be sufficient, standing alone, to prove that a roof must be replaced." It calls it "best practice" for the insurer to tell you before nonrenewing, send you copies of the images, and let you dispute them. It also says "The burden is on the insurer to prove the reason for non-renewal," and that if you file a complaint with ALDOI you "will be entitled to view evidence relied upon by the insurer."

Your right to a written reason. Alabama's Policyholder Bill of Rights (Act 2012-510) says you have the right "to receive in writing from their 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." Check your policy for the exact notice period that applies to you.

Insurers must offer a FORTIFIED roof upgrade. When you buy a new policy, or at the first renewal after Jan. 1, 2020, insurers writing homeowners insurance "shall offer a fortified bronze roof endorsement." It upgrades a home to a FORTIFIED standard if a covered loss means the roof must be replaced (Ala. Code 27-31D-2.1). Ask your agent whether you have it. [6][7][8][15][20][21][22]

How to complain

ALDOI asks you to contact the insurance company or agent first. If that doesn't solve it, file a complaint through ALDOI's complaint page. Include your name and contact details, the company or agent, your policy number, any claim number, and "a detailed description of your concerns."

ALDOI says it will send your complaint to the company, which is "required to respond," and will "require corrective action" if the company didn't meet its legal obligations. ALDOI cannot help if you have an attorney, and it cannot "Determine the value of a claim or the amount of money owed to you."

Consumer Services: (334) 241-4141 or (800) 433-3966, email ConsumerServices@insurance.alabama.gov. [4][23]

Discounts for a FORTIFIED home

Alabama law says insurers "shall provide a premium discount or insurance rate reduction" for homes built to, or retrofitted to, the Insurance Institute for Business & Home Safety (IBHS) FORTIFIED standards (Ala. Code 27-31D-1 and 27-31D-2). The home must be inspected and certified by an IBHS-certified inspector, and you must give the IBHS certificate to your insurer before the discount starts.

• The discount applies "only to policies that provide wind coverage." It may apply to the wind part of the premium, or to the whole premium if the insurer doesn't price wind separately.
• Each insurer files its own "actuarially justified" rating plan, so the size of the discount differs by company. Confirm the amount with your insurer.
• The law covers single-family homes, modular homes and commercial buildings. Manufactured and mobile homes are excluded except for certain retrofits to an IBHS manufactured-home standard.
• The Strengthen Alabama Homes program says admitted insurers "must honor the certificate and give the discount," while surplus lines insurers (companies not licensed in Alabama that sell through special brokers) "are not obligated under the law to give the discount."

Read more about the standard in our FORTIFIED roof guide. [2][3][9][24]

Grants: Strengthen Alabama Homes

Strengthen Alabama Homes is an ALDOI program that pays a certified contractor up to $10,000 to bring an owner-occupied, single-family home up to the FORTIFIED Roof standard. You pay the FORTIFIED evaluator's fee and any cost above the grant.

Applications open once a quarter, first come, first served. The program's grant award schedule lists openings on Oct. 6, 2026 (Mobile County) and Oct. 8, 2026 (Baldwin County), then in January, April and July 2027. When we checked on Oct. 13, 2026, an undated notice on the program's home page said "there are still funds available." Apply at strengthenalabamahomes.com. [3][10][25]

State income tax deduction for retrofits

Alabama allows an income tax deduction for the cost of retrofitting your legal residence to resist windstorm damage, "regardless of whether the taxpayer itemizes." The deduction is the lesser of 50% of the cost or $3,000 in total for all years since 2011. There are two versions, one for homes in an AIUA zone (Ala. Code 40-18-15.4) and one for any Alabama residence (40-18-15.5), and together they "may not exceed three thousand dollars ($3,000)." Costs paid with grant money don't qualify "if the grants are not included in the income of the taxpayer." ALDOI's program FAQ describes this as a credit of up to $3,000, but the statute calls it a deduction. ALDOI says it "does not provide tax advice," so ask a tax professional. [25][26][27]

Flood is separate

ALDOI says "Standard home insurance policies do not cover flood damage." If you live on the coast, the AIUA requires flood insurance for properties in flood zones A and V. Our sister site FloodHawk explains flood zones and flood insurance. [1][28]

Where to get help

• Alabama Department of Insurance, Consumer Services: (334) 241-4141 or (800) 433-3966; file a complaint.
• AIUA (coastal last-resort wind coverage): aiua.org; claims (866) 780-2482.
• Strengthen Alabama Homes: (334) 240-4440 or (800) 433-3966, SAH@insurance.alabama.gov.
• Suspect a fake contractor after a storm: State Fire Marshal's office, (334) 241-4166.

[4][11][29]

Questions people ask