, you should ideally have a policy that covers wind and hail damage, floods, fires, and other weather-related hazards. Comparing quotes from several companies is all it takes to get the ideal homeowners insurance for you.

Buying a house can be both the most exciting and stressful time of your life. You’ll want to protect your new investment as much as you possibly can, and investing in homeowners insurance is the best way to do so.

Before you settle on a new policy, you should have a thorough understanding of what exactly goes into your homeowner’s insurance and how you can save money on this essential purchase.

Jerry

, the licensed broker app for

home and car insurance

, is breaking down everything you need to know about homeowners insurance in Alabama.

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What is homeowners insurance?

Homeowners insurance is a type of policy that covers your house and its belongings. A basic homeowners insurance policy protects you against the loss of your house, property damage, and personal liability.

In the United States, the average cost of homeowners insurance is $1,387 per year or $115 per month.

Basic components of homeowners insurance

Homeowners insurance usually consists of the following:

Coverage A (Structure): Covers the cost of repairing or replacing the structure of the house.

Coverage B (Additional structures): Covers the cost of repairing or replacing other structures on the property, such as fences, pools, and sheds.

Coverage C (Personal property): Financial protection against the loss or destruction of specified personal belongings (like electronics, furniture, jewelry, etc.).

Coverage D (Other expenses): Also known as "loss of use." Pays for temporary living expenditures (such as a hotel or rent) incurred as a result of losing all or part of your house.

Coverage E (Personal liability): Pays for legal fees if someone is hurt on your property (or by a pet or family member).

You can buy a policy that covers either the actual cash value (ACV) of your property at the time of loss or the replacement cost—that is, the cost of replacing the property regardless of its actual worth. In most cases, firms demand that homeowners have a policy that covers at least 80% of the replacement cost.

MORE: Home insurance terms you need to know

Named perils

Unless you have a specific policy, there is no standard comprehensive coverage for homeowners insurance. Your policy will only cover named perils and special circumstances outlined in your agreement. These usually include:

Flood insurance

Water overflow or discharge (plumbing and other appliances)

Fire

Wind and hail damage

Weight of ice, snow, and/or sleet

Damage caused by vehicles

Theft

Be sure to read over your policy before signing to make sure you know what is and isn’t covered!

Is homeowners insurance required in Alabama?

Alabama does not require its homeowners to purchase insurance, but your lender may require it if you’re mortgaging your home. A mortgage lender wants to make sure your home is adequately insured in the event of damage or a catastrophic loss because they have an investment in it.

How to get homeowners insurance

Start by comparing quotes from a few different companies if you've recently purchased a home or are looking for a new homeowners policy (the

Jerry

app makes this simple!). Don't just accept the first referral that comes your way; you might be missing out on discounts in the process.

You should always get a quote from your insurance provider. Even though the actual cost is greater, bundling your

home and auto

coverage may save you money. Bundling savings often range from 5% to 15% or more, so it's worth checking to see what may be available to you.

Recommended home insurance coverage in Alabama

For homeowners in Alabama, theft, wildfires, and flood damage are among the main perils to protect against with insurance. Many homeowners policies will supply coverage for the first two, but you should make sure you’re covered against severe storms and floods in Alabama.

Here are three techniques to help you safeguard your house from potential flood damage:

Flood insurance protects your house from flooding caused by an external source. FEMA's National Flood Insurance Program (FLIP) or another referral are both options.

Water backup insurance can cover the cost of water removal and repairs in the event of a burst or backed-up pipe.

An HO-5 or open perils policy covers any risk unless it is clearly stated as an exclusion in your policy.

MORE: How to choose the right kind of home insurance for you

Why is homeowners insurance in Alabama so expensive?

The average cost of homeowners insurance in Alabama is, on average, more expensive than the national cost of $1,387 per year. Some variables influence home insurance premiums—like employment status and credit history—that can vary from person to person, but there are specific factors that can impact homeowners insurance across Alabama.

Hurricanes and storms

Hurricanes can cause significant property damage, including wind and flood damage, which are some of the most typical home insurance claims. Alabama is more likely to see hurricanes and other storms due to its location along the Gulf coast.

Older homes

Along with the square footage of the house, the age of your home is one of the most important elements used by insurance providers to calculate your rate. The South is famed for its historic houses, many of which date back to the 1800s, and are found throughout Alabama.

Homeowners insurance discounts in Alabama

Insurance companies frequently offer a variety of discounts for different types of consumers and acts. Examples of common homeowner insurance discounts can be found in the table below:

Discount	How to get it
Bundling	Bundling home and auto insurance could earn you a steep discount on both policies.
First-time homeowner	If you're buying your first home, most insurance providers will give you a discount.
Claims-free	If you go a particular amount of time (usually a few years) without filing a claim on your insurance, you can be eligible for a discount.
Storm proofing	Various hurricane-safety improvements, such as a new roof or storm shutters, may qualify you for a discount on your homeowners insurance.
Security system	Your insurance company may give you a discount on your homeowners insurance if you have a security system to prevent theft.
Upgraded fire alarm	Set your fire alarm to call the fire department directly; your insurance carrier may offer a discount for a faster fire response time.

How to save on home and auto insurance

It can be pretty stressful to buy

homeowners insurance

, especially if it’s your first time doing so, but shopping for homeowners insurance is easier than ever thanks to the

Jerry

app.

A licensed broker, Jerry does all the hard work of finding cheap quotes from over 50 of the top name-brand insurance companies. They can even search for

car insurance

policies to bundle with your homeowner’s coverage! Jerry will take care of all the paperwork once you've picked the policy that's perfect for you.

With Jerry’s skilled assistance, you’ll know you’re getting the best bargain possible, whether you’re insuring your first house or looking for new, cheaper rates.

“Amazing service!
Jerry
helped me get insurance for the first time. Everything went smoothly without a hitch. I couldn’t ask for more!” —LaTasha F.

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Is hurricane insurance required in Alabama?

Since hurricane insurance is not a stand-alone policy, it will be included in any homeowners coverage. Although homeowners insurance is not required by law in Alabama, most lenders do ask for it—and it’s always a great choice to keep your home protected!

What is the average cost of homeowners insurance in Alabama?

The average cost of Alabama homeowners insurance varies depending on where you live and other additional factors, but it usually averages between $1300 and $1900 a year.

Save an average of 18% by bundling your home and auto insurance

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