Home insurance is a critical consideration for every homeowner. The cost can vary across each state, but there are ways to get the best rate on your homeowners policy in Birmingham, Alabama.

Known as the Magic City, Birmingham is nested at the foothills of the Appalachian Mountains. It’s an excellent location to purchase a home. The city was named one of the most affordable cities for first-time homeowners in 2019.

If you live in Birmingham or are looking to move there, Insurify can help you get the best price on a home insurance policy.

Cheapest Birmingham Home Insurance

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How to Find Cheap Home Insurance in Birmingham

Finding a home to purchase in Birmingham is straightforward because the city has a balanced housing market. Still, buying a home is no small feat. It’s likely the largest purchase you’ll make in your lifetime, and you should take steps to protect your investment.

One of the first things you need to safeguard your home is home insurance. While home insurance can’t prevent natural disasters, theft, or vandalism, the right policy can mitigate loss and cover the cost of repairs.

Cost is a consideration when looking for Birmingham home insurance. It’s important to keep in mind that coverage options aren’t one-size-fits-all. Every homeowner has different insurance needs, and rates can depend on your home’s age, its dwelling type, and which Birmingham neighborhood you live in.

It’s possible to get a cheap rate on home insurance in Birmingham. Keep reading to find out how you can save money on your policy.

Cheapest Home Insurance in Birmingham by Company

The average home insurance premium in Birmingham is $3,280. Your rate might be higher or lower than that. It comes down to your home’s value, the neighborhood you’re in, and your insurance options.

Home insurance is vital to homeownership, but that doesn’t mean you don’t have some control over what you pay. That’s where Insurify comes in. Compare insurance products, deductibles, and more to get the best home insurance in Birmingham.

Average Home Cost in Birmingham Average Annual Insurance Premium in Birmingham
$64,840 $3,280

Cheapest ZIP Codes in Birmingham for Home Insurance

A home’s location and property value influence how much you pay for home insurance. The average price for a house in Birmingham is $X. However, lowering your house payment and your premium might be as easy as buying a home in a different part of the city.

Like property costs, home insurance varies in price from city to city. Pricing is determined on ZIP code–specific variables, such as the volume of claims filed nearby, crime rates, and property costs, and risk variables, such as natural disaster frequency. Even your specific neighborhood may determine if you pay more or less on our annual premiums. 

Rates in Birmingham can be relatively high or low compared to the national average; it all depends on which town you live in. Here are the most and least expensive ZIP codes in Birmingham for home insurance.

Most Expensive Real Estate in Birmingham Cheapest Real Estate in Birmingham
Five Points South $215,690 Tuxedo $21,904
Glen Iris $196,236 Ensley $28,462
Penfield Park $91,602 Fairview $36,920

Home Insurance Coverage Types in Birmingham

There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:

HO-1

Basic

  • The simplest and least comprehensive type of homeowners insurance
  • Provides coverage for a handful of potential problems, including
    • Dwelling coverage for damages from some natural disasters (storms, fires, wind, lightning, volcanic eruption), 
    • explosions, 
    • theft, 
    • damage from vehicles, 
    • or civil commotion. 
HO-2

Broad Form

  • Broad form homeowners insurance policies include all basic form coverage, plus protection from:
    • falling objects, 
    • damage from the weight of ice, snow, or sleet, 
    • freezing of household systems including HVAC and pipes, 
    • sudden and accidental damage to pipes and other household systems from artificially generated electrical current, 
    • accidental discharge or overflow of water or steam,
    • sudden and accidental damage. 
  • HO-2 policies typically cover both dwelling protection and personal property.
  • In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
HO-3

Special Form

  • The most common form of homeowners insurance is known as a “special form” policy.
  • While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
HO-4

Tenant’s Form

  • HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes. 
  • Tenant’s form policies typically cover all the same dangers as HO-2 policies. 
  • These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house. 
  • Some HO-4 policies may also include loss of use coverage for the tenants.
HO-5

Comprehensive

  • Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
  • The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
  • An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). 
  • HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.
HO-6

Condo Form

  • Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies. 
  • They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. 
  • These policies also include personal property and liability coverage and may include loss of use coverage.
HO-7

Mobile Home Form

  • If you own a mobile home or manufactured home, you likely have an HO-7 policy. 
  • Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
  • Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well. 
  • HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
HO-8

Older Home

  • Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them. 
  • HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes. 
  • Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

Insurance for Natural Disasters and Extreme Weather in Birmingham

Natural disasters can cause significant damage to homes and property in Birmingham. The most common weather events in Alabama include tornadoes, hurricanes, floods, and thunderstorms.

Birmingham is part of Dixie Alley, which is separate from the well-known Tornado Alley. Dixie Alley is in the Gulf Coast area and has a high frequency of tornadoes, especially during the late fall months of October, November, and December. If a tornado forms near your home, you might experience hail, damage from flying debris, roof damage, shattered windows, and fallen trees.

Most Alabama homeowners policies cover tornadoes. But it only covers your home—you need car insurance from a separate auto policy to protect against destruction to your vehicle.

Some home insurance excludes specific perils, like wind and hail, and an insurance agency can require you to purchase additional coverage for tornado claims. If you’re buying home insurance in Birmingham, check the policy to make sure it covers damage from tornadoes.

Flooding is another weather concern. Tornadoes, hurricanes, and heavy rain from thunderstorms can all lead to flooding and water damage to your home. Home insurance does not typically cover flood damage.

To protect your home, you may need to purchase a separate flood insurance policy through the National Flood Insurance Program.

Mobile Home Insurance Coverage in Birmingham

Alabama is one of the top five states for manufactured housing. A standard homeowners insurance policy doesn’t cover mobile and manufactured homes. Instead, you need a different policy type to protect your living space when you live in a mobile home.

While the policy type is different, mobile home insurance generally provides the same coverage as house insurance: dwelling protection, other structures, personal property, liability, medical expenses, and loss of use coverage. 

The best mobile home insurance will depend on the coverage you need. Keep in mind that your policy will only protect your home when it’s stationary. You’ll need a special policy to insure your mobile or manufactured home if you plan to move it. 

Buying a new home can come with a lot of questions, especially when selecting house insurance.

Birmingham Homeowners Insurance FAQs

How much is homeowners insurance in Birmingham?

Your home insurance rate hinges on many factors. Your home’s value, the neighborhood crime rate, and the probability of natural disasters are significant variables. Out of the 10 costliest hurricanes in U.S. history, four have impacted Alabama, which can drive costs up. You can lower your premiums by being selective about the neighborhood where you purchase a home. Bundling your home and auto insurance policy with the same carrier can also qualify you for discounts.

How long does it take to file a homeowners claim in Birmingham?

Waiting for payment from a claim can be stressful. The time it takes to file a claim and receive payment can vary by company. It can also depend on other weather events in your area. You want an insurance company to resolve your claim quickly so you can get back to your everyday life. However, if severe weather swept through Birmingham, insurance agents are likely to be overwhelmed with claims, and that can slow down the processing time.

Does USAA insure homes in Birmingham?

Yes, USAA offers homeowners insurance in Birmingham. Coverage from USAA is only available to current and former members of the military and their families. It doesn’t offer many discounts, but it is a high-ranked insurer. Policies can include comprehensive coverage for all major perils. You can also customize your policy according to your needs.

Conclusion: How to Find the Cheapest Home Insurance in Birmingham

Finding the right insurance company can be difficult and may result in expensive premiums. With a little effort, you can find affordable Birmingham home insurance. Don’t leave your home to chance. When you protect your investment, you can rest easy knowing you have coverage if your home is damaged.

Use Insurify to compare home insurance premiums for your property in Birmingham. We simplify comparison shopping by giving you multiple home insurance quotes using one simple form.

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Browse, compare, and secure home insurance with Insurify today! 

Yep, it’s that easy.  

Updated September 16, 2020

Amy is a content marketing writer who specializes in personal finance and technology. With a background in the legal field, she has a talent for transforming complex topics into content that’s easy to understand. When she’s not writing, she enjoys reading and playing board games with her family. You can learn more at amybeardsley.com.