Alabama Home Insurance

Storms, hurricanes, and floods are regular threats to Alabama homeowners, and home insurance in Alabama is crucial to its residents holding onto their homes and their livelihood. The Simple Dollar has compiled a number of useful resources, rules, information and stats on home insurance coverage so Alabama residents can find all the tools they need in one place.

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Stats in Your State

To see how your Alabama homeowners rates compare with home insurance rates for the U.S. and neighboring states, read through the graphs below. The Simple Dollar has also compiled details on Alabama home sales and disasters in recent years, which are illustrated in the charts below.

Homeowner Insurance Premiums

Increasing storms and severe hurricanes in recent years have driven up the cost of home insurance in Alabama, with rates surpassing the U.S. average from 2003 through 2008. It’s easy to see why Alabama homes cost more to insure than the average home across the country.

Renter Insurance Premiums

Similar to home insurance costs, renters insurance in Alabama surpassed the national average from 2003 through 2008, due to increased risks from storms and hurricanes.

Existing Home Sales

Like the rest of the country, the housing market bubble affected Alabama heavily, with home sales peaking between 2004 and 2006, and taking a nosedive in 2007 and 2008, reaching a decade low of 71,600 homes sold in 2010.

Flood Insurance in Region

Compared with its Southern neighbors, Alabama’s 2011-2012 flood insurance claims ranked sixth in the East South Central region. In that time, 319 Alabama homeowners filed flood insurance claims that totalled $6,989,000 in compensation. Its mountains and distance from the Mississippi river make it less vulnerable to flooding than its neighboring states.

Homes Built

Alabama is populated with many old homes and structures, as evidenced by the chart below. New home construction in the 2000’s was slightly less than the national average, with the majority of Alabama’s homes having been constructed between 1970 and 2000.

Rules in Your State

With so many natural disasters threatening Alabama residents, home insurance is crucial to any home owner’s peace of mind. Fortunately, Alabama has an easy to understand bill of rights for homeowners, which can be read below.

Alabama Policyholder Bill of RightsALABAMA ACT NO. 2012-510: The Alabama Homeowners Bill Of Rights Act sets forth the following regulations around home insurance policies and the rights of consumers. Use the link above to protect yourself from being cheated by your insurance company. Regulations for Alabama Insurers: These regulations apply to the insurance industry in general, and cover all types of insurance coverage in Alabama, from home to health to auto and life, among others. It should be used as a general resource, but for more specific information on homeowners insurance in Alabama, read through the resources below.

Representatives & Resources in Your State

Consumers have a number of outlets to go to for assistance, information, and guidance in all things related to home insurance coverage in Alabama. The links and resources below should provide a number of paths by which to reach your goal, resolve your issues, and get the closure you need to maintain a good insurance policy on your home.

Alabama Department of Insurance (ADOI)
P O Box 303351
Montgomery, AL 36130-3351
(334) 269-3550
Contact Information for ADOI
ADOI Consumer Complaint Resource
Keeping your insurer in check is a necessary part of the insurer and customer relationship, so if you feel the need to file a complaint, use the link above to seek help from the Department of Insurance.
ADOI Homeowners Premium Comparisons
Compare Alabama home insurance premiums using ADOI’s useful guide; the overview includes specific examples to help Alabama homeowners understand what to expect with their rates.
ADOI Consumer’s Guide to Homeowners Insurance
This guide covers topics like choosing a good homeowners insurance policy, how to file claims, and finding the coverage that’s right for you and your home.
ADOI General Tips When Shopping For Insurance
The Department of Insurance has put together numerous tips that apply to all types of insurance coverage for Alabama residents, and is a good general guide to cover home, auto, life, health and other types of coverage.
ADOI: Disaster Preparedness
Hurricanes and storms threaten Alabama nearly every year, and preparing for a disaster is the best way to avoid a costly home insurance claim. The Department of Insurance has put together a useful set of tips for preparing and planning in case of a disaster.

AccuCoverage: Calculate the Value of Your Home
This resource helps consumers calculate the value of their home so they can be prepared in case of a homeowners claim, and so they can be sure they have enough coverage for their home in case of a disaster.

Homeland Security Website
The federal Department of Homeland Security’s website provides information and guides to emergency preparedness, among other resources for the public.

Disaster Relief and Claims
FEMA Region 4 Contact Information
Alabama’s close proximity to the Gulf makes it familiar territory for the Federal Emergency Management Administration (FEMA). Whether it’s oil spill relief, storms and hurricanes, or flooding, Alabama residents have a number of natural and manmade disasters with which to grapple. The above link provides contact information for the regional FEMA offices.