Homeowners Insurance in Huntsville, Alabama (2024)

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 all the information you need to know about home insurance in Huntsville. We listed top insurance companies and their average rates, factors that affect premiums, and much more.

On average, home insurance in Huntsville may cost you about $1,780 per year. Compared to other notable cities in Alabama, this average Huntsville premium is higher than the average premiums in Birmingham and Montgomery, yet lower than costs in Tuscaloosa and Mobile. 

But, keep in mind that rates can be affected by many variables. We compiled a list of some of the most well-known insurers in Huntsville and analyzed their rates to arm you with the knowledge you need to make a good decision when shopping for homeowners insurance.

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.

Although the average cost is $1,780, four of the seven providers on our list come in under this number. Travelers, as you can see, is $1,075 less than (60% lower) the Huntsville city average, while Allstate and Safeco also came in below average.

We mentioned that the 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. 

To demonstrate the effects of home value on insurance rates, look at Huntsville premiums on $150,000 homes only.

 Travelers and Allstate averages dip below $1,000 per year. Alfa remains the most costly provider on the list. The average premium on $150,000 houses in Huntsville dropped $449, or 25%, compared to the overall average premium in the city.

As you’ll see below, the rates for $300,000 homes will be higher across the board. More expensive homes have higher replacement costs, which would cost more to rebuild.

Remember, certain aspects of your home and policy can raise or lower your rate; these are just averages. Just because an insurance company on our list has high average premiums doesn’t mean that you’ll pay a lot for that coverage. You may be rewarded with a discount, such as a claims-free discount or a new home discount. 

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.

Over 20 insurance companies filed premiums with the state government regarding coverage in Huntsville. On our list, Alfa was the most costly provider, with Nationwide a consistent second. Remember, though, that these are averages. Every policyholder is different, and you may be able to find coverage from these carriers at cheaper rates.

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.

Another popular provider in Alabama that we didn’t mention is Universal Property & Casualty. UPCIC is the largest insurance company in Florida, and they’re very prevalent throughout the southeastern United States overall.

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 consider it the worst city for tornadoes in the country. 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 [email protected].