Homeowners Insurance in Huntsville, Alabama (2025)

Huntsville has become the largest city in Alabama. Its rich history and emerging, high-tech economy make it an attractive spot for many professionals and have caused notable population growth in the last two decades.

As home values increase in Huntsville, the need for homeowners insurance becomes even more prominent. Homeowners insurance is the best way to protect yourself and your property from unexpected damage, called perils.

We made this guide to provide the information you need to know about home insurance in Huntsville, including average rates, premium factors, and much more.

On average, homeowners insurance in Huntsville costs about $1,882 per year, which is 9% lower than the statewide rate. The city’s northern and inland location likely helps keep premiums on the low side, especially when compared with Alabama’s Gulf cities.

Hurricane risk is a significant rating factor for insurance companies in the southeastern United States. The susceptibility of wind damage causes many insurers to raise premiums on properties near the coast. Since Huntsville is well inland, it doesn’t receive the brunt of hurricane-force winds or the associated higher property insurance rates.

However, note that premiums can vary due to several factors, so while this average is useful to know, many details about yourself and your property can influence premiums when quoting.

Remember, certain aspects of your home and policy can raise or lower your rate; these are just averages. Coverage amount affects the cost of insurance. The value of your home determines how much insurance coverage you’ll need – the more your house costs, the more insurance you’ll need to protect it. More expensive homes have higher replacement costs, which would cost more to rebuild and insure.

Also, newer homes tend to have lower insurance premiums than older ones because newer construction is safer and has less wear and tear. Thus, it’s less likely to have issues leading to a claim.

State Farm, Allfa, Allstate, and USAA are the largest home insurance companies in Alabama. However, almost 150 insurers were listed on the state government’s most recent report of insurance companies writing home insurance plans in the state, so there are plenty of options.

Every policyholder is different, and you may be able to find coverage from some carriers at cheaper rates than others. It’s crucial to shop around. 

Also, some companies where you do pay more for coverage may have perks that make it more attractive or worthwhile to pay those amounts. For instance, some carriers may offer specific optional endorsements that others don’t.

We’ve presented a lot of information, and you can see how keeping all this in mind when shopping for insurance can be tricky. Thankfully, there are insurance agents whose job is to help you find coverage. Insurance agents can get you quotes from multiple providers at a time and help you make the right choice. They can also help you understand your policy, update and maintain your policy, and file a claim.

An independent insurance agent isn’t tied to a single insurance provider, meaning they can shop around and find the best rates for you from several carriers. We’re Clovered, an independent insurance agency that partners with some of the top insurance companies in the country. 

We handle the insurance needs of tens of thousands of customers around the nation, and we’d love to help you find coverage in Huntsville.

Homeowners insurance protects from various sources of damage, called perils. Common perils include hurricanes, tornadoes, fires, water damage, and theft. The different sections of a policy protect different areas of your property and livelihood.

Dwelling coverage covers your house and its essential components. This includes the structure of your home, like the walls, windows, floor, and roof. It also covers the wiring, plumbing, and air conditioning to a certain extent.

Other structures coverage is meant to protect the features on your property that aren’t attached to your house. These include sheds, fences, in-ground pools, detached garages, and more.

Personal property coverage is for your belongings. These would be your clothes, art, electronics, jewelry, lawn equipment, furniture, and more.

Loss of use coverage applies after you suffer damage that forces you to move out of your house temporarily. It covers many of the additional living expenses, such as a hotel stay, that you’ll rack up while displaced.

Liability coverage comes into play when someone suffers an injury that you’re liable for, and that person pursues you for the damage. Liability coverage can cover legal fees and medical bills. Medical payments coverage also covers minor injuries someone can suffer.

Flooding is a serious concern to many residents in Huntsville. According to the city website, 17% of the city’s land area and 6.7% of the developed property are subject to overbank flooding. This threat is important to acknowledge because homeowners insurance won’t cover damage from floods.

You need a separate flood insurance policy to protect you from flooding damage, which can occur from heavy rains and flash floods. The federal government, specifically FEMA (Federal Emergency Management Agency), creates flood zone maps for the country. Some areas of Huntsville are in flood zones.

Some properties along Pinlook Creek and Broglan Branch are in AE flood zones, which are high-risk flood zones. There’s also a flood zone north of the University of Alabama-Huntsville.

Homes in high-risk flood zones are required to have flood insurance by mortgage providers. If you’re looking for flood insurance, we can help. Submit our quick and easy quote form, or feel free to call an agent. We’d love to chat.

Another factor that affects homeowners insurance rates is your susceptibility to severe weather. Huntsville is mostly guarded against the effects of hurricanes because of its inland location. Tornadoes, on the other hand, are a serious risk. 

Some outlets even say that Tornado Alley is shifting to encompass the southeastern states as well as the Great Plains, with the number of tornadoes occurring in Alabama being a main contributor to that shift. The possibility of severe damage from such storms raises rates in Huntsville, although you may help yourself by getting a wind mitigation inspection.

Additionally, certain aspects of your policy can influence your premiums. Raising or lowering your deductible can change your yearly premiums, and having a higher deductible often results in a lower rate. Be aware that having a higher deductible means you’re willing to pay more out of pocket before your insurer steps in.

Adding endorsements or riders for added coverage, such as scheduled personal property coverage or a permitted incidental occupancies endorsement, can raise your premiums, too. 

Also, remodeling your home – thus raising its value – can call for an increase in coverage, which can raise your rates. Adding a pool, trampoline, or another attractive nuisance will also likely raise how much you pay.

We’d love to help you find the right insurance policy for your needs in Huntsville. We built our online quoting tool so you can compare quotes from several companies at once. 

If you’d rather speak with someone, feel free to call one of our Clovered agents at 833-255-4117 Monday through Friday from 8:30 a.m. to 6 p.m. You can also send us an email at agent@clovered.com.