Homeowners Insurance in Alexander City, Alabama (2024)

Boasting more than 700 miles of shoreline along Lake Martin and containing more than 44,000 acres of water, Alexander City is a premium Alabama destination for all things water sports. Needless to say, it attracts many residents that need both homeowners insurance and boat insurance.

Luckily, for the nearly 15,000 residents of the town, we’ve created an in-depth guide about homeowners insurance — equipped with average premiums, what’s covered and much more.

The average cost of homeowners insurance in Alexander City, Alabama is $1,569 per year. However, premiums heavily depend on the value of your house, so homeowners with a house valued at $150,000 can expect to pay $1,223 per year, while homeowners with a $300,000 house can expect to pay $1,915 per year.

While Alexander City may not rank among the top ten or even the top fifty most populous cities in the Heart of Dixie, the city’s new development plans support its growth in recent years.

So, whether you live in this Alabama city or are planning to contribute to its growth, let’s examine how much you can expect to pay on your homeowners insurance premiums. 

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.

As you can see from above, there are four different categories of rating factors used by the Alabama Department of Insurance. This is fairly common, and similar factors are used in the nearby states of Georgia and Florida. But there are more factors you need to know about before getting into a more in-depth breakdown.

Things like natural disasters, particularly the more common tornadoes and residual hurricane winds in the area, influence rates heavily. Insurers need to calculate the potential damage those winds could cause to one single town and the area as a whole. If an insurer has many policies in a single city and other policies sparsely populated throughout the state, the chances of paying more for premiums increases. 

This is because the risk taken on by the insurer is higher because one big natural disaster in the town could cause many claims at once. That’s why large insurers diversify in as many cities and states as possible, mitigating their risk of having to pay out large sums of money at once. While the average cost of premiums in the Heart of Dixie has risen by about $550 since 2020, according to the New York Times, the cost of homeowners insurance is relatively low in this Alabama city.

That’s also why we partner with large insurance companies. It allows us to decipher their costs and only choose the partners who can provide affordable policies that meet the needs of homeowners. Things like your converge amounts, deductibles and many other factors are also at play.

Before we dive any deeper into coverages, let’s take a look at the average cost of homeowners insurance in Alexander City, Alabama for homeowners with $150,000 and $300,000 houses.

Dwelling: This protects the actual structure of your home and the things attached and considered vital to it. These are things like the major systems in your home (HVAC, electrical and plumbing). Coverage also extends to things like your home’s roof, the windows, doors, flooring, hot water heater.

It’s important that your home’s dwelling coverage matches, at the very least, your home’s value. So houses worth $350,000 should have at least $350,000 worth of coverage. However, since housing prices increase throughout the year, it’s recommended to insure your home for 3% over the value.

Other Structures: This is responsible for protecting structures on your property that aren’t connected to your house. These are things like a fence, detached garage, carport and sheds.

Your maximum per claim of other structure coverage is usually 10% of the total dwelling coverage amount. So homeowners with $250,000 in dwelling coverage will have $25,000 worth of coverage to protect other structures on the property.

Personal Property: This is designed to cover exactly what it sounds like. It’ll help protect your furniture, electronics and much more if your home is damaged or destroyed by a covered peril.

To determine how much coverage you should opt for, you should keep a home inventory list of all your belongings and their values. This will help you determine if you need something like $20,000 in coverage or $60,000 in coverage.

Loss of Use: If a covered peril did damage or destroy your home and you’re forced to temporarily move out while it’s being repaired or rebuilt, loss of use coverage will become your best friend. It’s designed to help pay for additional living expenses incurred due to the temporary displacement.

Coverage can apply to things like a temporary rental home of equivalent value, storage fees, pet boarding and so much more.

Liability: This is designed to help cover medical bills and legal fees if someone is injured on your property and you’re found liable, damage you cause to another home, or if your dog bites someone on or off the property.

Things like a tree falling from your yard onto your neighbor’s roof can be covered, as can incidents like your dog biting someone off your property. Coverage typically comes standard at $250,000 per claim, but high-net-worth individuals are encouraged to purchase supplementary umbrella coverage to extend their maximums.

Medical Payments: This helps pay for minor medical bills if someone is injured on your property, and it doesn’t matter whether you’re at fault or not.

Flood damage isn’t covered by homeowners insurance, so you’ll need a separate flood insurance policy to be covered from the costly perils caused by floods. Since they’re fairly common along the shores of Lake Martin, and extremely costly, securing a policy to protect your home.

Getting a homeowners insurance quote is easy as ever with Clovered. Our online quoting platform is simple to use, extremely intuitive and can compare the premiums of some of Alabama’s top insurers, so you get the best policy at the best price.

We’re always here to help. If you’d rather speak to a licensed agent on the phone, just call 833-255-4117 Monday through Friday from 8:30 a.m. to 6 p.m. Or you can email us anytime at [email protected].