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:
10 largest Alabama homeowners insurance companies
|Rank in Alabama||Company||Market share % in the state|
|1||Alfa Mutual Group||
|7||Great American Insurance||
|10||W. R. Berkley Corp.||
|Source: S&P Global Market Intelligence, based on homeowners multiple peril insurance market share in 2018.|