Tuscaloosa Homeowners Insurance

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Centered around the University of Alabama, Tuscaloosa, Alabama, is a vibrant town with a pleasant downtown and humid, mild weather indicative of the Deep South. The suburban college town feel appeals to many, and the young professionals on and around campus mean the population is in flux regularly.

For the permanent residents of Tuscaloosa, the need for homeowners insurance remains constant. Having a proper policy is the only way to guarantee your home has a financial safety net if it suffers unexpected damage.

Below, we’ll go over the average home insurance rates in Tuscaloosa, cost factors that affect premiums in the city, and much more.

How Much Does Home Insurance Cost in Tuscaloosa, Alabama?

The average cost of homeowners insurance in Tuscaloosa is about $1,989 per year. This average is a bit higher than other major inland cities in Alabama of Huntsville and Montgomery, likely due to the prevalent threat of tornadoes in Tuscaloosa.

Insurance companies must consider the possibility of damage from natural disasters when determining insurance premiums in an area. For instance, on the Gulf Coast of Alabama, rates in the city of Mobile and Gulf Shores are some of the highest in the state due to the potential for costly hurricane damage.

We compiled a list of some of the top home insurance companies in Tuscaloosa and their average premiums. Check it out below.

Average Homeowners Insurance Cost in Tuscaloosa

State Farm$2,928

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.

Policy Type

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.

Coverage Amounts

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.

Credit Score

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+).

Home Protection

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.

Average Home Insurance Rates in Tuscaloosa Explained

Alfa Insurance and Nationwide had the highest premiums on our list, while Allstate and Travelers were the lowest. Over $2,000 separated the most costly insurer on our list from the lowest-cost insurer, so it’s safe to say that the average premium in Tuscaloosa doesn’t give the full story. 

Home insurance premiums are affected by a lot of variables. A significant one is home value. The more house you have, the more it’ll cost to cover with an insurance policy. Larger, more expensive homes have higher replacement costs. The replacement cost is the amount of money it would take the insurance company to rebuild your house if a covered peril destroyed it.

For a more accurate portrayal of rates in Tuscaloosa, look below at home insurance premiums in the city on $150,000 homes only.

Average Homeowners Insurance Cost in Tuscaloosa for a $150,000 House

State Farm$1,600

Insurance Costs on $150,000 Homes and $300,000 Homes in Tuscaloosa

When looking at $150,000 homes only, Allstate, Safeco, and Travelers all came in under $1,000 per year on average. The average rate for $150,000 homes was $582 less, or 29% lower, than the overall average premium.

On the list of premiums for $300,000 homes just below, you’ll see that the average rate is a 19% increase on the overall average rate. For $300,000 houses, the lowest premium on our lits was $1,014, with the most expensive choice, Alfa, eclipsing $3,100.

Alfa also sported the biggest difference in premium between the $150,000 and $300,000 price points, at $1,303. Take a look at the list to see the full extent of the effect of home value on rates.

Average Homeowners Insurance Cost in Tuscaloosa for a $300,000 House

State Farm$2,255

It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

What Does Home Insurance Cover in Tuscaloosa? 

Homeowners insurance covers you and your property from several sources of damage. Hurricanes, tornadoes, fires, water damage, and theft are some of the most common ones. Home insurance policies are divided into sections that guard you against these perils in different ways.

Dwelling coverage protects your main house. It covers your primary dwelling from the roof to the foundation to an extent, including air conditioning and electrical wiring systems. The amount of dwelling coverage you need is based on the value of your home.

For instance, if your home is worth $300,000, you’ll need at least $300,000 of dwelling coverage.

Other structures coverage protects the features on your property that aren’t attached to your main house. These include sheds, detached garages, fences, and more. The amount of other structures coverage you have is typically about 10% of your dwelling coverage. For example, if you have $300,000 of dwelling coverage, you may have about $30,000 in other structures coverage.

Personal property coverage safeguards your belongings. You can be reimbursed for your clothes, art, jewelry, tools, electronics, and more if they’re damaged by covered perils. 

Insurers cover your personal property on either an actual cash value or a replacement cost basis. Actual cash value is the more affordable option, although it covers your items for less since it factors in depreciation at the time of reimbursement. 

Loss of use coverage kicks in if damage from a covered loss renders your home temporarily uninhabitable. When you move out while your home is being repaired, your insurance company can pick up the additional living expenses you rack up, like costs of a hotel stay and gas.

Liability coverage protects your finances if you’re found liable for an injury that someone suffers. If the injured party decides to pursue you, liability coverage can cover their medical bills and your legal fees so you don’t have to pay out of pocket.

Policies typically come with at least $100,000 of liability coverage and between $1,000 and $5,000 of medical payments coverage, a similar type of coverage designed specifically for minor injuries.

Factors That Affect Home Insurance Rates in Tuscaloosa

We mentioned the notable threat of tornadoes in Tuscaloosa and how it raises premiums in the area. More factors that affect home insurance premiums include:

Construction Style: frame homes tend to have higher average premiums than masonry homes since bricks and concrete can stand up to severe weather better and are less flammable than wood homes.

Attractive Nuisances: pools, trampolines, and playground equipment can increase the liability risk of your property, thus increasing your premiums.

Claims History: someone who has a history of filing claims may pay more for coverage. Insurance companies believe someone who has filed claims in the past is more likely to do so in the future, making them more of a financial risk. As a result, carriers may charge this person more.

Deductible: raising your deductible is a quick way to lower your premiums. Having a higher deductible means you’re willing to pay more money out of pocket to fix damage before filing a claim and asking your insurance company for help.

How to Get a Home Insurance Quote in Tuscaloosa, Alabama

Whether you’re a new homeowner who needs a policy or an existing homeowner that wants to switch insurance providers in Tuscaloosa, we’d love to help. We’re Clovered, an independent insurance agency that has helped thousands of people in several states throughout the southeast find the coverage they need at the price they want.

You can use our online quoting platform to compare quotes from our partners, or you can chat with a licensed agent on the phone by calling 833-255-4117 during business hours. You can also email us at agent@clovered.com whenever you’d like.

It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

How to Protect Your Property From Flooding in Tuscaloosa

Tuscaloosa is no stranger to flash floods. Just last year and this year have seen notable flash floods throughout the city. There are also some federally designated flood zones in Tuscaloosa. For example, some areas west of Stillman College and around and north of I-20 have been determined flood zones by the Federal Emergency Management Agency.

FEMA creates flood zone maps for the country by assessing and monitoring flood risk nationwide. Mortgage lenders require homeowners with houses in high-risk FEMA flood zones to have flood insurance. The largest flood insurance company in the country is the National Flood Insurance Program.

Flooding can happen anywhere. You may want to think about flood insurance even if you aren’t in a high-risk zone. The NFIP reports that over 25% of its flood insurance claims come from properties outside high-risk flood zones.

Additionally, homeowners insurance doesn’t cover damage from flooding. Contact us or submit our easy flood quote form to learn more about your flood insurance options and get quotes in your area.

Stay Above Water With Flood Insurance

Do you want to pay for costly and common flood damage yourself or have an insurance policy pick up the tab?

It's Time to Switch Your Homeowners Insurance

We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.

The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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