Dothan Homeowners Insurance
- Dothan Homeowners Insurance
Dothan is the fastest-growing city in the Wiregrass. As the city grows, owning a home will be that much more valuable. Every responsible homeowner in Dothan should invest in the right homeowners insurance policy to protect their investment and their livelihood.
We gathered and broke down everything you need to know about home insurance in Dothan, including average rates from many top insurance companies. Keep reading to find out how much you can expect to pay, common coverages, and more.
How Much Does Home Insurance Cost in Dothan, Alabama?
A homeowners insurance policy in Dothan, Alabama, costs about $1,666, although you may be able to get coverage for less. On our list of popular providers, premiums range from $974 to $2,955, as many factors affect the cost of home insurance.
Here are some insurance companies in Dothan and their rates:
Average Homeowners Insurance Cost in Dothan
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.
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.
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.
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+).
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.
More Information on Average Dothan Home Insurance Rates
Even though Dothan’s average home insurance premium is $1,666, three providers on our list come in at over $2,000. Insurance is hard to quantify with just one number since premiums vary so much from person to person. Many factors about a policyholder and their home can influence rates.
For example, insurance companies take home age into consideration. Generally, older homes have more problems that can lead to claims. Things like dated wiring systems, dilapidated roofs, and old siding can all be red flags to providers. Older homes that have these will likely pay higher premiums than someone in a newer house. If you were to look at averages of older homes only, they’d likely be higher across the board.
Additionally, home value is another crucial variable. The amount of coverage you need depends on the value of your house. The bigger and more expensive your home is, the higher its replacement cost, and the more insurance you’ll need. You need coverage that’s close to the value of your home. Look at rates in Dothan below for $150,000 homes:
Average Homeowners Insurance Cost in Dothan for a $150,000 House
Home Insurance Premiums on $150,000 and $300,000 Houses in Dothan
Looking only at $150,000 homes, you’ll see some providers’ rates dropped dramatically. Alfa, for instance, decreased by $803, although it remained the most costly provider on our list. Travelers and Allstate had the lowest premiums listed.
Below, we’ll list rates for $300,000 homes in Dothan, and you’ll see that numbers go up across the board. Allstate and Travelers are still the lowest two premiums, followed by Safeco. After that, all listed carriers rise above the city average at that price point. Take a look.
Average Homeowners Insurance Cost in Dothan for a $300,000 House
What Insurance Companies Are in Dothan, Alabama?
We listed the rates of seven popular insurance providers in Dothan, but 21 companies in total filed rates with the state. The average premium is representative of all companies that filed. Allstate, Farmers, Nationwide and State Farm are the largest insurers nationally in Dothan. Additionally, Universal Property & Casualty is a prevalent insurance company throughout the southeast that writes in Alabama.
Finding an Insurance Agency in Dothan
Finding the right insurance company in Dothan can be tricky with so many different options available. This is where insurance agents come in. In Dothan, agencies like Aarons Insurance and Flowers Insurance are popular. Essentially, the agency’s role is to act as a middle man between the policyholder and the insurance provider.
Agents help with claims and finding and amending your coverage. They look out for you. Also, independent agents can get you quotes from multiple providers to help you find the best option.
We’re Clovered, an independent insurance agency that partners with several of the nation’s top insurance carriers. We understand that finding coverage can be challenging.
We were founded with the goal of simplifying insurance. Clovered is based in Florida, but our business extends throughout the southeast, including Alabama, and our team of licensed agents has helped many in the state find coverage.
What Does Home Insurance in Dothan Cover?
Homeowners insurance policies contain the following coverages:
- Other Structures
- Personal Property
- Loss of Use
- Medical Payments
Other structures coverage is for the features on your property not connected to your home. These could include fences, gazebos, detached garages, sheds, carports, and more.
The amount of dwelling coverage you need is based on the value of your home, and the amount of other structures coverage you need is a percentage (typically about 10%) of your dwelling coverage. For example, if you have $300,000 of dwelling coverage, you may have $30,000 of other structures coverage.
Factors That Affect Home Insurance Rates in Dothan
We’ve mentioned several, but insurance companies consider several variables when determining premiums. Home age and home value are important. Home construction style also plays a prominent role. Houses are built with either masonry or frame construction. Masonry homes are made of bricks or concrete, while frame homes are built with wood.
Frame homes tend to have higher replacement costs, but they can withstand the elements better than frame homes. They’re more resistant to wind damage because of their sturdier materials. They’re less prone to fire damage, too, since there’s much less wood in the house’s skeleton. They also can’t suffer as much damage from termites or wood rot.
Location is a notable factor, too. Although Dothan is mostly shielded from hurricanes, the city did feel some effects of Hurricane Michael in 2018. Tornadoes are also a possibility in Dothan, with Houston and Henry counties seeing them every so often. Even relatively weak tornadoes can cause tens of thousands of dollars of property damage, so insurers consider them when determining rates.
Living in an area with high crime rates can affect premiums, too, since the odds of a claim from burglary are higher.
Additionally, the conditions that your insurance company is facing can affect rates. For instance, if your provider paid out a lot of claims in the past year or two, they may raise their rates for all policyholders in the future to recoup some losses.
How to Get a Home Insurance Quote in Dothan, Alabama
We’d love to help you find the right insurance policy for your needs in Dothan. You can chat with a licensed agent at Clovered 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 firstname.lastname@example.org. We also have an online quoting platform that can allow you to compare quotes from our partners entirely online.
How to Protect Your Home From Flooding in Dothan, Alabama
We’ve mentioned the many different perils that home insurance protects your property from, but there is one threat that it won’t help: floods. Flooding is one of the most costly natural disasters in the United States, and it can happen anywhere.
Some properties along the Poplar Spring Branch and its offshoots are in flood zones in Dothan. Also, some areas along Cypress Creek are flood zones. But, the National Flood Insurance Program NFIP) reports that over 1 in 4 of their flood insurance claims comes from outside high-risk flood zones from properties that aren’t required to get a policy.
The NFIP dominated the flood insurance market for a long time, but the number of private flood insurance companies continues to grow as technology improves and the desire for better flood insurance grows.
Do you want to pay for costly and common flood damage yourself or have an insurance policy pick up the tab?
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.