Homeowners Insurance in Montgomery, Alabama (2024)

Anyone who owns a home in Montgomery should be aware of the need for homeowners insurance. You’re required to have a policy if you have a mortgage. Yet, many people aren’t sure of the particulars of their policy or what factors affect their coverage.

We made this guide to home insurance in Montgomery to clear everything up. Keep reading to learn average rates from some of the top providers in the city, common factors that affect premiums, and much more.

The average cost of home insurance in Montgomery is about $1,640, although this can vary based on the value of your home, among other things. Home insurance on a $150,000 house in Montgomery costs about $1,215, while coverage on a $300,000 home costs $1,994.

The overall average premium in Montgomery is lower than average costs in coastal Mobile and tornado-prone Tuscaloosa. Look below at what some well-known insurance companies in the Montgomery area charge.

The rates in this article are sourced from the Alabama Department of Insurance, which provides real premiums from several companies in the state. These are average annual premiums for an HO-3 policy, which is the most common type of homeowners insurance plan.

Nationwide had the highest average premiums on our list in Montgomery, with Alfa Insurance a close second. Travelers and Allstate both came in at under $1,000 per year, making them the two standout, most affordable options.

But, it’s important to remember that these are just averages. You may be able to obtain coverage from an above carrier for less than what’s listed. Certain things about you can make you more appealing to an insurance company, like if you’ve never filed a claim. Also, outfitting your home with certain wind-resistant features through wind mitigation can lower your premiums.

Home value is a critical factor in determining insurance premiums. Insurers determine how much coverage you need from how much it would cost to rebuild your home if it gets destroyed. Insurers usually get this number from either your home’s replacement cost or its market value, and it forms the backbone of your policy.

Homeowners in less expensive homes will usually pay less for insurance than people who own high-end, luxury mansions. Look below at what it costs on average for insurance on a $150,000 house in Montgomery.

You’ll notice that every insurance company’s premium on $150,000 homes went down compared to their overall premium. For instance, although Alfa remained the most expensive carrier on our list, its average premium dropped 23% when looking at homes at this price point only.

The average rate of $1,215 on a $150,000 house in Montgomery is 39% lower than the average cost of insurance on a $300,000 house, outlined in the list below. When looking at coverage for $300,000 homes, you’ll see every provider climbs above $1,000 per year on average, with the most expensive choice exceeding $3,000.

State Farm is one of the largest insurance companies in the country. In Montgomery were around the middle of the pack on our list. They had the fourth-highest overall average premium out of seven companies. 

State Farm relies on captive agents to sell its policies nationwide. These agents specialize in State Farm product offerings and can help with several of your insurance needs – not just homeowners insurance- by matching you with a State Farm policy.

Going through a captive agent may not be the best option for everyone, though, because you’re limited to only one insurance carrier. An independent insurance agent, on the other hand, isn’t tied to just one provider. They can compare quotes from several companies and find you one at a competitive price that matches your needs the best.

We’re Clovered, an independent insurance agency headquartered in Florida with a heavy presence throughout the southeast. We partner with many of the nation’s top insurance companies, and you can compare multiple home insurance policies at a time with our online quoting tool.

We were built with the mission of simplifying insurance. If you’d like to speak to one of our licensed agents about coverage, call us at 833-255-4117. We’re happy to help.

Homeowners insurance covers more than just your house. Policies come with several aspects of coverage that are divided into different sections in a plan. They guard your property and your finances from covered perils.

Dwelling coverage and other structures coverage protect your house – the roof, walls, windows, etc. – and the features on your property, like sheds, gazebos, fences, carports, driveways, and more. Personal property coverage financially safeguards your belongings. These include your furniture, clothes, electronics, jewelry, and more.

Loss of use coverage applies if a covered peril forces you to move out of your home. While your insurance repairs damage to your house, it can also cover the costs of a hotel stay, food, gas, and more until you move back in.

Liability coverage can pay for medical bills and legal fees if someone suffers an injury that you’re found liable for, like if your dog bites someone. Medical payments coverage also comes into play when someone gets hurt, although it’s for minor injuries only.

The combination of the city’s topography, the proximity to the Alabama River, and the amount of rainfall that the Deep South gets means flooding is a concern in Montgomery. You can’t overlook this threat because homeowners insurance doesn’t cover flood damage. If you want to be sufficiently protected, you’d need flood insurance.

Through the Federal Emergency Management Agency (FEMA), the government maintains flood zone maps for the country. FEMA has designated the risk of flooding for areas nationwide. Your mortgage lender will require flood insurance if your home lies in a high-risk FEMA flood zone.

In Montgomery, many properties along Catoma Creek are in flood zones. Also, some properties around the Montgomery Memorial Cemetery are in a high-risk flood zone. In fact, some residents experience consistent flooding due to issues with the city’s infrastructure.

Our flood insurance quote form takes only a few minutes to fill out if you’re interested in getting flood insurance. Once submitted, one of our agents will get back to you as soon as possible with your flood insurance options.

While hurricanes aren’t a huge risk in inland Montgomery, their effects can still be felt from time to time. For instance, Hurricanes Sally and Ida peppered the area just recently. Also, tornadoes are a threat periodically. Insurers consider the possibility of damage from such storms when determining premiums, and it often results in relatively higher rates.

More factors that can affect rates include:

Another thing that can affect your homeowners insurance rates is your home’s ability to withstand storm elements. While some homeowners will need to do some remodeling to get their homes outfitted for storm damage, the state of Alabama has allocated funds for qualified homeowners in each county to get weatherization assistance. When your home is prepared to withstand the elements, your utility bills and home insurance premiums may decrease.

When shopping for homeowners insurance, you should compare quotes from several providers to be sure you’re getting the best deal. Read up on their insurance claims process and note their policy exclusions. 

Our agents at Clovered can help you do this. Whether through our website, phone, or email to [email protected], one of our team members would love to assist you. We’ve helped thousands find coverage, and we can find the right coverage in Montgomery for you.