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Alabama Homeowners Insurance

Homeowners Insurance in Alabama: Complete Consumer Guide

Alabama became the 22nd state on December 14, 1819. Alabama has significant landmarks from the American Civil Rights Movement. The city of Birmingham’s 16th Street Baptist Church, now a museum, was a protest headquarters in the 1960s. Martin Luther King, Jr.’s church and the Rosa Parks Museum can be found in Alabama’s capital city of Montgomery. The state bird of Alabama is the yellowhammer. The state flower of Alabama is the camellia. And the state tree of Alabama is the longleaf pine. About 70 percent of Alabama is covered in forests.

Types of policy for Homeowners Insurance in Alabama

What type of homeowners insurance policy do you need for your home? Not sure? Here is a look at different types of homeowners insurance to help you decide.

HO-1 This policy, known as a “basic form,” covers the 10 most common perils. But you won’t find these policies everywhere. Some insurance companies do not offer HO-1 forms.

HO-2 Called a “broad form,” this policy provides more limited home insurance coverage. But it still provides more insurance coverage than a HO-1 basic form.

HO-3 This form is the most widely purchased type of home insurance policy. It provides coverage for named perils and for personal property. With a HO-3 form your insurance company will pay to repair or replace belongings caused by covered perils, 16 of which are covered by the policy. These 16 covered perils include hail, explosions, vandalism, theft, falling objects, the weight of ice, snow and sleet, water damage, fire, smoke, lightning and windstorm.

HO-6 This policy form is for condominium units. This type of coverage is usually “walls-in” coverage and may protect a condo unit’s ceilings, floors and walls against 16 perils. The policy form also includes coverage for the condo owner’s personal belongings.

HO-8 This type of policy form is for older houses and covers 10 perils. The HO-8 policy form is paid on an actual cash value basis, which is the cost of the items minus depreciation.

What factors affect rates on homeowners insurance in Alabama?

There are many factors that come into play when you are rated for a homeowners insurance policy. For example, the construction materials of your home are a big factor. So are other things such as how much it will cost to rebuild your house and replace all your belongings. Whether you have a swimming pool or a trampoline are other factors. Do you have dogs? You are liable for dog bites and injuries caused by your dog and this affects your homeowners insurance. Your credit also plays a role in your homeowners insurance. If you have good or excellent credit you’ll pay a lower home insurance rate than a homeowner with bad credit.

Top 5 disasters in the State of Alabama

Alabama federally declared Severe Storms as the most common disaster with 41 counts since 1953, followed by Hurricane, Flood, Fire, and Tornado. Here are the top 5 federally declared disasters in the state of Alabama:

Rank

Declaration Title

Disaster Number

1Severe Storms41
2Hurricane21
3Flood10
4Fire9
5Tornado7

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Alabama?

The average cost of homeowners insurance in Alabama is $1,116 per year.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Alabama a safe state?

2019 Crime in Alabama

Crime Number

Crime Rate*

Property Crime131,1332,674.4
Burglary26,079531.9
Larceny-Theft92,4771,886.1

*Rate per 100,000 inhabitants

Safest City in Alabama by Property Crime*

  • Hoover, AL has a population of 85,670 with a Property Crime rate of 22.4 per 1k. The city average home value is approximately $320,089.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Alabama

Top homeowners insurance companies in Alabama

USAA has good customer service, competitive insurance rates and provides extensive insurance resources to members. Membership is limited to military members and their families. At USAA, you’ll get discounts for bundling your home insurance policy with another insurance policy from USAA. You’ll receive a 10 percent discount if you haven’t made a claim in the past five years. And you’ll also receive a discount if you have a home security system.

Allstate has a wide array of discounts for customers to choose from, which help to lower home insurance premiums. Allstate has an interactive website and there are a number of add-ons that can be placed on a policy. Discounts are available for multiple policies, going claim-free and early signing.

State Farm has a strong website and speedy claims payments. State Farm is also known for the accuracy of its insurance quotes. Discounts are available for having multiple lines and for the types of roofing products you have on your house. If you have a fire, smoke or burglar alarm, you may qualify for a home alert protection discount from State Farm.

Alabama Home Insurance FAQs

Does homeowners insurance cover a detached garage?

The “Other Structures” section of your homeowners policy covers structures on your property that are separate from your house. These structures include a detached garage.

Will homeowners insurance pay for a new fence?

The “Other Structures” coverage in your homeowners policy covers fences. And if the fence was damaged in a covered peril such as a fallen tree, your home insurance policy may pay for a new one.

What is the standard deductible for homeowners insurance?

Typically, homeowners choose $1,000 deductibles for their homeowners insurance. But you can go lower or even as high as $2,500, depending on the insurer. But remember that you have to pay this deductible if you’re forced to file a claim.

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