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Updated February 28, 2022
Birmingham, AL Homeowners Insurance
Home insurance is a big decision for every homeowner. Costs vary state to state, county to county, city to city, and even neighborhood to neighborhood. In this article, we’ll get up-close and personal with home insurance 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, especially for first-time homebuyers looking for affordable city life. 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 homeowners insurance quotes. Using our free search tool, you can compare home insurance rates from 10+ top companies servicing your neighborhood. Save your profile to receive rate reduction notifications in the future. Try now!
Cheapest Home Insurance Companies in Birmingham
For homeowners in Birmingham, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Comparing the right insurance companies will allow you to get the best possible insurance rate for your home.
To simplify comparing companies, Insurify has analyzed rates from top insurance providers in Birmingham. The following are the best insurance rates from carriers that offer homeowners insurance in Birmingham.
|Cheapest Companies||Quotes The car insurance quotes, statistics, and data visualizations on this page are derived from Insurify’s proprietary database of over 4 million car insurance applications from ZIP codes across the United States. Insurify’s data science team performs a comprehensive analysis of the various factors car insurance providers take into account while setting rates to provide readers insight into how car insurance quotes are priced.|
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.
The first thing 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 an important consideration when looking for Birmingham home insurance. Keep in mind that rates are affected by your home’s age, its dwelling type, and which neighborhood you live in. Just remember that cost isn’t the whole picture. Be sure that your policy actually protects your financial interests. Paying a little more each month for full coverage can save you thousands in the event of a claim.
It’s always possible to get a cheap rate on home insurance in Birmingham. Keep reading to find out how you can save money on your policy.
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Cheapest Home Insurance in Birmingham by Company
Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in. Our free home insurance comparison tool allows you to find the best policy for the best rate fast. And your information stays private and protected.
The average home insurance premium in Birmingham is $1,301 a year, $108 a month. Your rate might be higher or lower than that. Price comes down to your home’s value, the neighborhood you’re in, and your insurance coverage options.
That being said, Travelers, Nationwide, and AllState top our list of cheapest insurers in Birmingham. But just because they’re generally cheaper, doesn’t mean they’ll be cheaper for you.
|Average Home Cost in Birmingham The car insurance quotes, statistics, and data visualizations on this page are derived from Insurify’s proprietary database of over 4 million car insurance applications from ZIP codes across the United States. Insurify’s data science team performs a comprehensive analysis of the various factors car insurance providers take into account while setting rates to provide readers insight into how car insurance quotes are priced.||Average Annual Insurance Premium in Birmingham The car insurance quotes, statistics, and data visualizations on this page are derived from Insurify’s proprietary database of over 4 million car insurance applications from ZIP codes across the United States. Insurify’s data science team performs a comprehensive analysis of the various factors car insurance providers take into account while setting rates to provide readers insight into how car insurance quotes are priced.|
Average Annual Home Insurance Premium in Birmingham by Company
Average prices for standard homeowners insurance for a 7-15 year old home, $200,000 in coverage
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 $177.900 in 2019. Due to housing recent housing market changes, that amount has jumped to $285,000 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.
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:
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),
- damage from vehicles,
- or civil commotion.
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.
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 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.
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 policy.
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.
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.
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.
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.
For more detailed Alabama city level guides, check out these below.
Natural Disaster Protection 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. If it doesn’t, it’s recommended that you add tornado coverage to your policy.
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.
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.
Frequently Asked Questions
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 has driven costs up. You can lower your premiums by being selective about the neighborhood where you purchase a home. Building or remodeling with weatherproof material will also lower your rate. Bundling your home and auto insurance policy with the same carrier can qualify you for additional discounts.
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.
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.
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