Best Homeowners Insurance Agencies in Huntsville

Frequently Asked Questions

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• What does a basic homeowners’ insurance policy cover in Huntsville?

  Homeowners’ insurance policies in Huntsville cover structural damages to your dwelling, damaged personal belongings inside and on your property, liability protection for other people’s injuries and property damages, and additional living expenses while your house is under restoration. Perils that homeowners’ insurance usually covers include fire, lightning, hail, vandalism, and theft. Meanwhile, you may need to purchase additional coverage for expensive personal belongings and damages due to flood or earthquake.

• Is homeowners’ insurance required in Huntsville?

  No. Alabama has no law requiring you to have homeowners’ insurance if you own a house. However, if you are acquiring a house in Huntsville through a mortgage, you should get a policy, as lenders require it for a loan. In addition, you have to keep the house covered by homeowners’ insurance until the mortgage is paid off.

• What factors affect the price of homeowners’ insurance in Huntsville?

  Factors that Huntsville insurance companies look at when calculating the policy price include the property’s age, construction type, and distance to the nearest fire department or hydrant. Insurance for brick houses or newly constructed properties would cost less than old homes in isolated areas. Your personal preferences, such as the amount of coverage you desire and the amount of deductible you are willing to pay, also play a significant role in determining the cost of your premium.

• Why should you choose replacement cost over actual cash value coverage when buying homeowners’ insurance in Huntsville?

  With actual cash value coverage, the insurer will pay for a damaged item’s replacement cost less depreciation. If a tornado blows off your 10-year-old roof, the insurance company will only pay for the cost of an old roof. You need to pay the difference to install a new roof. Meanwhile, with replacement cost coverage, the Huntsville insurer pays for the damaged item's replacement at the current market value. The expense of a completely new roof will be covered.

• How much is the average cost of homeowners’ insurance in Huntsville?

  According to data gathered from insurance companies by independent insurance broker Policygenius, homeowners’ insurance in Alabama costs $1,940 on average annually. Specifically for Huntsville, the average annual cost is $1,771. These rates are slightly higher than the national average of $1,754. This is due to the state's proximity to the Gulf Coast and location within Dixie Alley, an area prone to frequent tornadoes.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.