Alabama Home Insurance

If you own or rent a home in Alabama, you may want to consider getting home insurance to protect your property and assets. Home insurance is not required by law in Alabama, but your lender may require it if you have a mortgage. Home insurance can also protect you from liability for accidents that injure other people or damage their property on your premises. Here are some details of Alabama home insurance requirements, laws, policies as well as average costs and best companies.

Requirements: The state of Alabama does not have specific requirements for home insurance, but your lender may have minimum standards for coverage. For example, some lenders may require you to have at least $250,000 of dwelling coverage and $100,000 of liability coverage. You should check with your lender to find out what their requirements are and make sure your policy meets them.

Laws: The state of Alabama regulates the home insurance industry and sets rules for how insurers can operate in the state. For example, insurers must be licensed by the Alabama Department of Insurance and follow certain guidelines for underwriting, rating, claims handling and cancellation. Insurers must also participate in the Alabama Insurance Underwriting Association (AIUA), which is a market of last resort for homeowners who cannot find coverage in the standard market. The AIUA offers basic fire and extended coverage policies for eligible properties in coastal areas.

Policies: Home insurance policies in Alabama typically include the following coverages:

- Dwelling: This covers the structure of your home and any attached structures, such as a garage or a deck. It also covers built-in appliances, plumbing, heating and electrical systems. Dwelling coverage pays for the repair or replacement of your home if it is damaged or destroyed by a covered peril, such as fire, windstorm, hail or vandalism.

- Other Structures: This covers detached structures on your property, such as a fence, a shed or a detached garage. Other structures coverage pays for the repair or replacement of these structures if they are damaged or destroyed by a covered peril.

- Personal Property: This covers your personal belongings, such as furniture, clothing, electronics and jewelry. Personal property coverage pays for the repair or replacement of your belongings if they are damaged or destroyed by a covered peril or stolen. Some items may have special limits or exclusions, such as firearms, art or jewelry. You may need to purchase additional coverage or endorsements for these items.

- Loss of Use: This covers your additional living expenses if you have to temporarily move out of your home because of a covered loss. Loss of use coverage pays for things like hotel bills, restaurant meals and transportation costs while your home is being repaired or rebuilt.

- Personal Liability: This covers your legal responsibility if you or a member of your household accidentally injures someone else or damages their property on or off your premises. Personal liability coverage pays for medical bills, legal fees and court judgments if you are sued for a covered claim.

- Medical Payments: This covers medical expenses for guests who are injured on your property, regardless of who is at fault. Medical payments coverage pays for things like doctor visits, hospital stays and ambulance fees.

Average Costs: According to the Insurance Information Institute, the average annual premium for homeowners insurance in Alabama was $1,433 in 2017, which was higher than the national average of $1,211. The average annual premium for renters insurance in Alabama was $235 in 2017, which was also higher than the national average of $180. The cost of home insurance in Alabama depends on many factors, such as the location, size, age and condition of your home, the amount and type of coverage you choose, your deductible amount and your credit score.

Best Companies: There are many home insurance companies that offer coverage in Alabama, but some may have better ratings, reviews and customer service than others. You should compare different companies based on their financial stability, claims satisfaction, policy options and discounts. Some of the top home insurance companies in Alabama based on market share are State Farm (27.2%), Alfa Mutual Group (13.7%), Allstate (12%), USAA (8.8%) and Travelers (4.6%).