Homeowners Insurance Quotes in Montgomery, AL

What You Should Know About Home Insurance in Montgomery

There is a lot of irony when you look at Montgomery’s history. The first White House of the Confederate States of America was established here in 1861, at the onset of the American Civil War, which led to widespread divisiveness and bloodshed. A century later, the city was at the forefront of the movement that led to equal rights for U.S. citizens, through events such as the Montgomery Bus Boycott and Martin Luther King Jr.’s rise in popularity. Museums and historic sites throughout town preserve the city’s important role, both good and bad, in developing the country and shaping U.S. policy.

Located along the Alabama River, Montgomery was incorporated as a city in 1819 and has been the state capital since 1846. The town where Wilbur and Orville Wright set up the first civilian flight school in the U.S. continues to be innovative and forward-thinking with its downtown revitalization, which already includes a minor league stadium and riverfront park, an impressive convention center, and lots of workspaces, including two high-rise office buildings. Schools of higher learning, including Alabama State University, Amridge University, Auburn University at Montgomery, Faulkner, Huntingdon College, South University, Trenholm State Community College, and Troy University at Montgomery, are located in town.

If you are fortunate enough to live in Montgomery, talk to an expert agent to get the best homeowners insurance at the most affordable prices in Alabama, so your finances will be safe should you have to repair or rebuild your home due to covered damages.

How Much Does a Homeowners Insurance Policy Typically Cost in Montgomery?

Rates will vary by location, down to the zip code. Conditions like vandalism or weather catastrophe rates make each area unique. Here is how Montgomery compares to the national average:

Dwelling Insurance Total	Average Annual Cost in Montgomery	Average Annual Cost Nationwide
$300K	$2,664	$2,582
$600K	$4,537	$4,140
$1 million	$7,168	$7,380

We arrived at these numbers by using the cost of dwelling coverage, a $100,000 liability and a standard $1,000 deductible.

How Do Home Insurance Deductibles Change Insurance Rates in Montgomery?

Your deductible is the amount of each claim that you have to cover before your insurance starts paying. Deductibles are usually between $500 and $5,000, and you get to decide on that amount. The higher the deductible you agree to, the lower your premiums will be because your insurer does not have to pay out as much when you file a claim.

With a lower deductible, you can expect higher rates because your insurer will be liable for more money when you file for reimbursement for damages. To illustrate: If you have $6,000 in damages, your insurer’s portion will only be $1,000 if you have a $5,000 deductible and $4,000 if you have a $2,000 deductible. This is why the deductible you choose affects your premiums.

Is Home Insurance Tax Deductible in Montgomery?

Ask your tax preparer if your homeowners premiums are tax deductible, and they will likely tell you that they are not. However, if your home generates income that you report on your tax return, you would probably be able to write off some or all of your policy as an expense. So if you have a home office or rent a unit in your home to tenants, a corresponding portion of your premiums may be deductible, and if you rent the whole house to others, you may get a deduction for the entire cost of your policy.

Does Montgomery Have the 80% Homeowners Insurance Rule?

The 80% rule sounds like a complicated law, but in truth, it is simply an industry standard that requires you to have enough coverage to pay for 80% of the replacement cost of your home. A house that costs $200,000 to rebuild after a fire needs $160,000 in replacement cost coverage. Insurers in Montgomery do follow this rule, but that does not mean that you have to be aware of what it would cost to replace your house — your InsureOne agent will ask you various details about the home and will be able to estimate that number for you.

Bundling Home and Auto Insurance in Montgomery

It is always a good idea to bundle your home and auto coverage with the same insurance company. Why deal with multiple companies and pay bills to two different vendors if you do not have to? But in addition to convenience, insurers lower premiums on your home and car insurance by up to 25% when you bundle.

If comparing prices between several different carriers and then trying to figure out which offers the best bundling discount sounds like a lot of work, rest assured, your InsureOne agent will take care of all that for you. They will look for providers that offer good rates and decent bundling discounts and deliver a personalized package of policies at affordable prices.

How Does Home Composition Impact Insurance Rates?

In order to be profitable, insurers need to evaluate the risk of providing coverage for your home against how much it would cost them to repair or replace your house and the probability of them having to do so. A lot of that depends on your home composition.

Sometimes, more expensive materials are also the ones that provide superior protection for your home. If you have a slate roof, it will reduce the probability of leaking when it rains compared to asphalt shingles, which crack more easily under hot temperatures and allow rain to seep in over time. However, the replacement cost for slate is more expensive than that of asphalt. Insurers use various methods based on these and similar factors related to your home’s composition to help determine how much to charge you for coverage.

What Are the Different Types of Homeowners Coverage Offered in Montgomery?

Hearing about different types of homeowners policies can be confusing, but your agent will walk you through which one pertains to you and what options may suit your unique needs. The following four policies serve distinctly different purposes, all within the realm of homeowners coverage:

• HO-3 policy: This policy is for homeowners. It provides liability coverage and covers the contents and structure of the home from a variety of natural events.
• HO-4 policy: The HO-4 is for tenants. It provides liability coverage and protection for the contents of the unit. The landlord must get a separate policy for the structure.
• HO-6 policy: This policy is for condo and co-op owners. It provides similar protections to the HO-3 from the walls in. The HOA must get a separate policy for the rest of the structure.
• HO-7 policy: The HO-7 is very similar to the HO-3 but is specifically designed for owners of mobile homes, trailers, manufactured homes, and similar structures.

What Is the Most Common Type of Home Purchased in Montgomery?

Almost 70% of living spaces in Montgomery are single-family detached homes. Slightly more than 47% of residents rent their units, and instead of ordinary homeowners insurance coverage, they would need to get a renters policy. If you are a tenant, make sure to educate yourself on the facts and myths of renters insurance before signing up for a policy.

Which Common Natural Disasters Are Covered by Home Insurance in Montgomery?

As far as natural disasters go, Montgomery is not known for being at the top of the list. However, they do occur on occasion, and knowing what type of events may affect your area will help you prepare in case one of these ever does cause damage to your home.

• Wildfires: Although not a major concern, many Montgomery homes have a moderate risk of getting damaged by a wildfire at some point in the next 30 years.
• Wind: Montgomery does not get severe hurricanes like cities directly on the Gulf, but it does get heavy winds on occasion that can damage homes.
• Floods: Flooding may occur at times in Montgomery. Ask your agent if your policy covers flooding. If not, they may be able to add it, or you may need a separate policy.