Homeowners Insurance in Daphne, Alabama

Just across the bay from Mobile lies the suburb of Daphne, Alabama. The “Jubilee City” is the largest in Baldwin County. It’s a family-friendly place with charming scenery and prime coastal access. 

Over 70% of residents own their homes in Daphne. This statistic is important because you need homeowners insurance as long as you have a mortgage.

We made this guide to explain everything you need to know about home insurance in Daphne, including average rates, the effects of wind mitigation, common coverages, and significant cost factors.

Homeowners insurance in Daphne, Alabama, costs $2,569 on average. This cost, though, is affected by many factors. Daphne’s location on the Gulf Coast makes it very vulnerable to hurricane damage. Thus, fortifying your home against hurricanes can significantly save your premiums.

Below, we’ve analyzed average rates with and without wind mitigation measures from many popular insurers in Daphne, like Farmers, Nationwide, and more.

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.

While Alabamans definitely have a lot to consider about their homes when they see their premiums, the state does offer a funding program for qualified residents to fortify their roofs with more impact-resistant materials, which may even lead to a decrease in premiums.

Even though the average cost of home insurance in Daphne is $2,569, it’s possible to get coverage for much less. Three companies on our list had premiums under the city average. Safeco was over $1,000 lower than the city average, while State Farm and Allstate were also well below.

Nationwide was the most expensive choice listed, with average premiums $5,240 more, or 51% higher, than the Daphne average. Farmers was a distant second-most costly, at 36% over the city mean.

It’s hard to explain home insurance rates fully with just averages since premiums vary greatly depending on many factors. Additionally, Daphne premiums are affected by wind mitigation due to its coastal location. In fact, hurricane seasons are getting stronger and stronger in Alabama’s coastal cities.

Hurricane damage can run up costly bills for insurance companies. As a result, if you take steps to strengthen your home against wind damage from hurricanes and other storms, called wind mitigation, your insurance company must lower your premiums in Alabama.

Below, we segmented rates for $150,000 homes with and without wind mitigation:

As you can see, wind mitigation makes a tremendous difference in premiums. Homes in Daphne with effective wind mitigation had premiums that averaged about $1,257, or 53%, lower than houses without wind mitigation.

Nationwide had the biggest rate differences between homes with and without wind mitigation rates. This is notable because, initially, Nationwide was the most costly carrier. But, when accounting for wind mitigation, it becomes much more competitive.

State Farm and Farmers also had significant differences between home types. As you may have noticed, home value is another important factor impacting premiums. The amount of coverage you need depends on how much your home is worth.

The more your home is worth, the more insurance you need. And, generally, the more insurance you need, the more you’ll pay. This is why rates on $150,000 homes will be lower than rates on $300,000 houses. See below.

Farmers Insurance in Daphne has notable differences in rates on houses with and without wind mitigation. Their average cost remains high, though, at the second most costly average overall. When it comes to $150,000 houses, Farmers’ average premium is more affordable, as the fourth most expensive option. For $300,000 houses, they climb back near the top.

Their rates differ by thousands of dollars on homes with wind mitigation, underlining the importance of bracing your house for the elements.

Nationwide is one of the largest insurance companies in the nation. Their premiums are the highest on our list in Daphne and well above the city average at every price point. For $150,000 houses, Nationwide was more than double the average rate. For $300,000 homes, their premiums were 43% higher.

Homeowners insurance policies include a variety of coverages that protect your property and your finances in different ways.

Likely the type of protection that comes to mind when you think of home insurance, dwelling coverage is designated for the structure and features of your main house. Dwelling coverage protects your roof, walls, floors, foundation, plumbing, wiring, and more. As we touched on earlier, the amount of dwelling coverage you have is based on the value of your house.

Other structures coverage protects the structures on your property that aren’t attached to your main dwelling. Fences, sheds, detached garages, and more fall under other structures coverage. The amount of other structures coverage you have is based on a percentage of your dwelling coverage.

It’s common to have up to 10% of your dwelling coverage amount as other structures coverage. For instance, if you have $150,000 of dwelling coverage, you may have $15,000 of other structures coverage.

Personal property coverage is for the belongings in and around your house. It covers your furniture, television, computers, small appliances, tools, clothes, and more. Your insurance company covers your belongings on either a replacement cost or an actual cash value basis.

Most policies also include loss of use coverage, which comes into play when you must move out of your house after covered damage. While your insurance company is making repairs, they can cover the costs of your food, gas, hotel stay, and more through loss of use coverage.

Liability coverage is for injuries that someone can suffer that you may be liable for. If someone gets hurt on your property or your dog bites someone, that person can sue you. Your liability coverage can cover your legal fees and the injured party’s medical bills if you’re found liable.

Home insurance policies also come with medical payments coverage, which is like liability insurance, but designed to cover only minor injuries.

We’ve already highlighted some critical factors that influence home insurance premiums, but there are more we’ve yet to mention. 

Claims history plays a role in premium prices. Someone who has filed several insurance claims in the recent past will likely pay more than someone who has never filed a claim before. This occurs because claims cost providers money, and insurers will charge higher premiums if they think there is a higher chance of having to pay out.

Additionally, having a pool, trampoline, or playground equipment on your property can raise your rates, too. Insurers call these attractive nuisances. They think they make your property more dangerous, which increases the chance of a liability claim. Thus, they charge more to offset this increased financial risk on their part.

A quick way to lower your premiums is by raising your deductible. A deductible is an amount you must pay before filing a claim and having your insurer pick up the rest of the tab. The more you choose to pay, the less the insurance company has to pay. Naturally, carriers like this, so they reward those who have higher deductibles with lower premiums. 

We mentioned the threat of hurricanes in Daphne. Insurers also consider the possibility of other weather phenomena, like tornadoes and sinkholes, when determining premiums.

Flooding is another relevant threat to your home in Daphne. Unfortunately, homeowners insurance doesn’t cover damage from floods. To fully protect your property from rushing waters, you might want to consider a flood insurance policy.

Some people saw their flood zone reclassified when FEMA updated Baldwin County flood maps in 2019. Your mortgage lender will require flood insurance if your home is in a federally designated flood zone. In Daphne, some coastal properties along Mobile Bay are in flood zones, and some places along the Perone Branch.

Homes in high-risk flood zones, beginning with A or V designations, need flood insurance if they have mortgages. The National Flood Insurance Program, administered by FEMA, is the largest flood insurer in the country and is a common choice people turn to. But, more and more private flood insurance companies are entering the market, and many offer more complete coverage than the NFIP.

We’d love to help you find the best flood insurance option. Clovered partners with the NFIP and many private flood insurers. Filling out our easy flood insurance quote form can get you started on finding protection from floods.

When shopping for home insurance, it’s crucial to compare quotes from multiple providers. Clovered can help you do this. Our objective is to simplify insurance. We want to find you coverage in Daphne.

You can use our online quoting platform, or speak to a licensed agent on the phone by calling 833-255-4117 Monday through Friday from 8:30 a.m. to 6 p.m. You can also email us anytime at agent@clovered.com.