Homeowners Insurance in Florence, Alabama (2025)

Nestled in the north of Alabama on the Tennessee River, Florence is a slice of whistling pine outdoor paradise. It’s the largest city in the Florence-Muscle Shoals metropolitan area and is home to the University of North Alabama.

Homeowners insurance costs in Florence are below the state average in Alabama, likely due to the city’s northern location. We explain the city’s average rates, insurance cost factors, and more below.

The average cost of homeowners insurance in Florence, Alabama, is about $1,928 per year, which is slightly below the state average of $2,058.

Many parts of the southeastern United States are experiencing price hikes in home insurance rates. This is partially due to damage and susceptibility to hurricanes that can blow in from the Gulf or Atlantic.

However, since Florence is well north and inland in upper Alabama, it still has fairly low premiums compared to coastal cities in the state. Florence still faces a few harsh weather events, but premiums in the city are still below average in Alabama.

Although those risks are imminent, there are many other factors that go into pricing premiums. We’ll go over the vast majority of them, and add more color to the costs, companies in the area and much more.

Another extremely important rating factor is your home’s construction type. Homes made of masonry materials are typically more affordable to insure than homes made of wood.

Masonry materials, such as brick and concrete, hold up better to the elements, like heavy winds, than wood homes. They’re also a bit less likely to sustain substantial fire damage to the structure itself. But one of the more key factors is the price of the home.

The more expensive a home, the more it’s going to cost to insure because the overall damage is likely to be more expensive. 

Since we’re an insurance agency, we partner with many of the top insurance carriers in Alabama — including in Florence — so we can shop around for our customers and get them the best policy at the best price.

When trying to choose a policy from the top insurers in Florence — such as Alfa, Farmers, Allstate, State Farm or Nationwide — utilizing Clovered is likely your best bet. Since we partner with many of the top insurance companies in Florence, Alabama, we can usually find an affordable policy that fits your needs.

What are those needs? Well, a standard homeowners insurance policy comes equipped with six different coverages relating to your house, personal belongings, property and some other variables. Depending on the type of policy you choose, it also covers you from 16 different perils.

Some policies cover more and some cover less, but the HO-3, the most commonly sold policy, protects against 16 perils. Let’s take a look at the different types of coverage you can expect from every homeowners policy.

Alabamians aren’t strangers to severe weather events. You name it, they’ve seen it. In fact, Alabama was ranked as the ninth-most impacted state by severe weather events. That considered, residents of Florence, Alabama, will want to know how their homeowners insurance policies protect them from damage caused by severe weather and other perils.

Dwelling: This coverage protects the actual structure of your home. This coverage comes in two forms, replacement cost and market value. Replacement cost coverage is the exact amount it would cost to rebuild your home, including all external features like a pool and outdoor kitchen, if it were entirely destroyed. Market value coverage incorporates the value of your home and property as it sat before the home was destroyed.

Other Structures: The second form of property protection is other structures coverage. It’s exactly what it sounds like. This coverage pays to repair or replace structures on your property that aren’t connected to your house. These are things like detached garages, carports and fences.

Its maximum coverage per claim is typically up to 10% of your dwelling value. So homeowners with $150,000 in dwelling coverage would have $15,000 in other structures coverage and homeowners with $300,000 in dwelling coverage would have $30,000 in other structures coverage.

Personal Property: This is designed to protect the personal belongings you keep inside your home and on your property. These are things like furniture, electronics, clothes and jewelry. You get to choose how much coverage you enroll in, so you’ll want the maximums to match the value of all your belongings combined.

The easiest way to determine the value of your belongings is to compile a home inventory of your contents. But keep in mind that high-value items like jewelry, art and collectibles have different coverage outlines than your other belongings. They’ll need to be scheduled in order to receive coverage for their total value.

Loss of Use: This can reimburse you for additional living expenses you incur while you’re forced out of your home. These are expenses like a rental home of equivalent value, storage fees for extra belongings and pet boarding for your furry family members.

Liability: This kicks in if someone is injured on your property, your pet bites someone on or off your property, or if you accidentally damage someone else’s property. While policies typically come standard with at least $100,000 worth of coverage, policyholders get to determine the amount of coverage they need.

Medical Payments: This covers minor medical expenses for people injured on your property. But, unlike liability coverage, it doesn’t matter if you’re found liable.

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 in Florence, and extremely costly, securing a policy to protect your home.

Getting an affordable homeowners insurance policy in Florence is quick and easy when you use Clovered. Simply enter a few details about your home in our online quoting tool, we’ll do all the hard work on the back end and then we’ll pair you with a policy that fits your needs and your budget.

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.