Posted November 18th, 2019 by Amy Danise
It’s important to have the right insurance in Alabama if you own property. You don’t want to lose your investment if there’s a fire, flood or other disaster.
What does Alabama homeowners insurance cover?
A typical policy in Alabama will have these six main coverage types:
- Dwelling (Coverage A) for a house damaged or destroyed by a problem covered by the policy.
- Personal property (Coverage C) pays for belongings (such as furniture, clothing and decorations) that are damaged, stolen or destroyed.
- Other structures (Coverage B) pays for damaged or destroyed structures not attached to a house, such as garages, storage sheds and fences.
- Loss of use (Coverage D) pays for additional living expenses such as hotel and restaurant bills if you must temporarily move because of damage to the house.
- Personal liability (Coverage E) pays if you are legally responsible for someone else’s injury or property damage and pays to defend you in court against liability lawsuits.
- Medical payments to others (Coverage F) pays medical bills of people hurt on your property.
How much is Alabama home insurance?
The average Alabama homeowners insurance premium is $1,386 for a typical policy, according to the National Association of Insurance Commissioners. That’s more than the nationwide average of $1,192.
Alabama Homeowners Bill of Rights
Alabama has a law that outlines the rights you have as a policyholder, known as the Homeowners Bill of Rights. Highlights include:
- You have the right to receive in writing from your 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.
- You have the right to cancel your policy and receive a refund of any unearned premium.
- You have the right to a written notification, at renewal, describing changes in your insurance contract language that are applicable to the renewal period.
- You have the right, in the event of a claim, to reject any settlement amount offered by the insurance company.
- You have the right to select a licensed contractor or vendor to repair, replace, or rebuild damaged property covered by the insurance policy.
- You have the right to file a written complaint against any insurance company with the Alabama Department of Insurance and to have that complaint reviewed by the Department of Insurance.
How do I get flood insurance in Alabama?
Flooding can be the most destructive element of a hurricane. In Alabama, you can buy flood insurance through the National Flood Insurance Program (NFIP). You can also buy “excess” flood insurance, which gives you additional coverage above an NFIP policy, from:
Home insurance shopping tip
Whether you’re looking to buy a home or already own one, shopping around for home insurance quotes can help you save money.
Largest home insurance companies in Alabama
|Rank in Alabama||Company name||Market share % in Alabama|
|2||Alfa Mutual Group||13.51|
|11||The Cincinnati Insurance Cos.||2.11|
|18||Clear Blue Insurance||0.79|
|20||American Family Insurance||0.72|
|22||Auto Club Exchange||0.7|
|25||Universal Insurance Holdings Inc.||0.42|
|30||National Security Group Inc.||0.2|
|31||First Protective Insurance Co.||0.18|
|32||Armed Forces Insurance Exchange||0.16|
|33||Spinnaker Insurance Co.||0.14|
|37||Kinsale Insurance Co.||0.12|
|41||New Holdings Inc.||0.09|
|43||Canopius US Insurance Inc.||0.06|
|44||National General Holdings Corp.||0.06|
|46||Randall & Quilter Investment Holdings||0.03|
|48||Gulf States Holdings Inc.||0.02|
|50||ECFPK Insurance Holdings LLC||0.02|
|Source: S&P Global Market Intelligence, based on premiums written in 2018 for homeowners insurance.|
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