Alexander City, Alabama Homeowners Insurance

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  • Alexander City, Alabama Homeowners Insurance

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.

How Much Is Homeowners Insurance in Alexander City, Alabama?

The average cost of homeowners insurance in Alexander City, Alabama is $1,497 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 $1,162 per year, while homeowners with a $300,000 house can expect to pay $1,831 per year.

Average Cost of Homeowners Insurance in Alexander City


Alfa$2,179
Allstate$1,098
Farmers$1,764
Nationwide$2,018
Safeco$1,773
State Farm$1,564
Travelers$1,315
Average$1,497

Alabama Department of Insurance Rating Factors

The numbers in this article are from the Alabama Department of Insurance. The premiums provided here do not include surcharges or discounts that may apply to a particular policy. These are real premiums, but they may vary depending on many factors.

Policy Type

The rates utilized are for an HO-3 Special Form, the most common type of homeowners insurance policy. The HO-3 covers houses on an “all-risks” basis, protecting property from 16 perils. Certain named exclusions, such as floods and earthquakes, are not covered.

Coverage Amounts

The amount of coverage you need is determined by the value of your home. The annual premiums are calculated based on $150,000 or $300,000 of dwelling coverage for 10-year-old houses with brick construction, a $500 deductible, no policy lapses and a premium paid in full.

Credit Score

The policyholder represented is a 40-year-old with a 710 credit score. Insurers in most states use credit rating as an indicator of your ability to pay your premiums on time. Having a bad credit score (below 600) may cause you to pay more for home insurance than someone with a good credit score (700+).

Home Protection

The rates represent houses that have smoke detectors and deadbolt locks with no other protective devices and no claims history. Many homeowners insurance companies may offer additional discounts to policyholders that protect their house with security systems or other features.

Breaking Down Premiums for $150,000 and $300,000 Houses in Alexander City, Alabama

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 state of Georgia. 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.

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.

Average Cost of Homeowners Insurance in Alexander City for a $150,000 House


Alfa$1,632
Allstate$797
Farmers$1,143
Nationwide$1,911
Safeco$1,867
State Farm$959
Travelers$1,536
Average$1,162

Average Cost of Homeowners Insurance in Alexander City for a $300,000 House


Alfa$2,725
Allstate$1,399
Farmers$2,385
Nationwide$2,124
Safeco$1,679
State Farm$2,169
Travelers$1,094
Average$1,831

It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

What Does Home Insurance in Alexander City, Alabama Cover?

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.

How to Get a Home Insurance Quote in Alexander City, Alabama

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 agent@clovered.com.

It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

Do I Need Flood Insurance in Alexander City?

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.

Stay Above Water With Flood Insurance

Do you want to pay for costly and common flood damage yourself or have an insurance policy pick up the tab?

Homeowners
It's Time to Switch Your Homeowners Insurance

We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.

The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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