Cullman, Alabama Homeowners Insurance

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  • Cullman, Alabama Homeowners Insurance

Almost midway between Huntsville and Birmingham lies Cullman, Alabama, the county seat home to nearly 15,000 people. Founded as a German-American town, it still celebrates its heritage to this day.

As it also sits in the middle of Alabama, homeowners in the two are most susceptible to sustaining tornado damage more than any other natural disaster. That’s why purchasing an Alabama homeowners insurance policy is extremely important. Let’s take a look at everything you need to know.

The Average Cost of Homeowners Insurance in Cullman, Alabama

The average cost of homeowners insurance in Cullman, Alabama is $1,344 for a $150,000 house and $2,168 for a $300,000 house, which is right on par with the state’s average. However, Cullman does face imminent risks from natural disasters other than tornadoes.

For instance, weakening — but still destructible — hurricane winds coming in from the Gulf of Mexico can have devastating direct impacts, as well as spawn tornadoes. Both are covered perils but insurers must increase the cost of homeowners insurance to help offset the potential payouts from home insurance claims.

Average Cost of Homeowners Insurance in Cullman, Alabama


Alfa$2,873
Allstate$1,235
Farmers$1,569
Nationwide$2,607
Safeco$2,098
State Farm$1,711
Travelers$1,299
Average$1,756

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.

The average cost of homeowners insurance in Cullman depends largely on the insurer on record. Insurers with more policies scattered across the state are better able to mitigate damage from isolated storms. Therefore, their book of business, which encompasses all the policies they write, pose a smaller risk of getting crushed by a single peril.

One of the biggest price-determining factors is the cost of the house. Obviously, those homeowners with a $150,000 house will likely pay less than those with a similar home worth $300,000. Let’s take a look at the price you can expect to pay for both categories.

Average Cost of Homeowners Insurance in Cullman, Alabama for a $150,000 House


Alfa$2,097
Allstate$891
Farmers$1,016
Nationwide$2,391
Safeco$2,479
State Farm$980
Travelers$1,732
Average$1,344

Average Cost of Homeowners Insurance in Cullman, Alabama for a $300,000 House


Alfa$3,649
Allstate$1,578
Farmers$2,121
Nationwide$2,822
Safeco$1,717
State Farm$2,442
Travelers$865
Average$2,168

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.

Examining Insurance Companies in Cullman, Alabama

As an agency, we have many insurance partners in Alabama ready to provide you with a policy today. All you need to do is enter a few details about your home into our proprietary online quoting engine, then we’ll work some magic and pair you with an affordable policy that meets your coverage needs.

While we don’t have partnerships with companies like State Farm, Farmers or Nationwide, we do have partnerships in place with companies like Travelers, Universal Property & Casualty Insurance Company and Hippo — some of the best insurers in the country. Let’s take an even closer look at the numbers and companies on the list.

  1. Alfa Insurance: Alfa Insurance, headquartered in Montgomery and known as one of the largest insurers in Alabama, is the second-most expensive carrier on the list. Rates average $2,097 for a $150,000 house and $3,649 for a $300,000 house.
  2. Allstate Insurance: Allstate is one of the most affordable providers on the list. It provides average rates of $891 for a $150,000 house and $1,578 for a $300,000 house.
  3. Farmers Insurance: Farmers averages $1,016 for a $150,000 house and $2,121 for a $300,000 house.
  4. Nationwide Insurance: As one of the most expensive carriers on the list, Nationwide averages $2,391 for a $150,000 house and $2,822 for a $300,000 house.
What Does Home Insurance Cover in Cullman?

Dwelling: The first and, arguably, most important part of your coverage is the dwelling portion. This protects the structure of your house, including everything from the nails that hold the walls together and the roof that keeps everything safe.

Your dwelling maximum per claim should match the value of your home, although we recommend getting 3% more in coverage due to your home’s value increasing through the year. This piece is responsible for protecting the major systems in your home as well, including the HVAC, plumbing and electrical.

Other Structures: This is geared to protect any structures on your property that aren’t attached to your home, such as sheds, carports, detached garages and fencing.

The amount of coverage you receive is typically 10% of your home’s dwelling coverage, which is the amount your house is actually insured for. So homeowners with a $250,000 house may have up to $25,000 in coverage for the structures on their property if they need to file a claim for damage.

Personal Property: This will help protect your furniture, clothing, electronics and much more if your home is damaged or destroyed by a covered peril. It also covers high-value items like jewelry and collectibles, but in a much different fashion with lower maximums — unless you schedule them with your insurer.

To determine how much coverage you need, start a home inventory list of all your belongings and their values, noting which items you need to schedule and for how much.

Loss of Use: Protects you in the short- or long-term if your home is damaged, deemed uninhabitable and then you must temporarily move out. In this instance, it can cover additional living expenses you wouldn’t have otherwise incurred. This includes a rental home of equivalent value, storage fees and pet boarding.

Liability: If someone is injured on your property, your dog bites someone on or off your property, or you accidentally cause damage to someone else’s property (and you’re found liable for any reason) liability coverage may be there to help you.

This coverage can help pay for medical expenses, repair costs and even legal fees if you get sued for any of the damages. Policies typically come standard with $250,000 in coverage per claim. However, you can typically get all the way up to $1 million in coverage before you need to go outside the box and secure an umbrella insurance policy.

Medical Payments: Similar to the aforementioned liability portion, medical payments to others coverage can help pay for minor medical expenses if someone is injured on your property — whether or not you’re found liable.

How to Get Home Insurance Cullman, 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.

Getting a Flood Insurance Policy in Cullman

Homeowners insurance doesn’t cover flooding, so you’ll need a separate flood insurance policy. But investing in an Alabama flood insurance policy is easy. Simply fill out our online quoting form with some information about your home and one of our licensed flood insurance agents will provide you with a policy that fits your needs.

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?

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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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