Why does my policy have more than one deductible?

A policy commonly carries a flat deductible for most claims and a separate percentage-based wind and hail deductible in storm-exposed states like Georgia.

Does my own insurance cover me when I stay in an Airbnb or VRBO?

The host's short-term rental policy protects the host, not you. As an Airbnb or VRBO guest, your own homeowners or renters insurance usually covers your belongings and personal liability away from home, within policy limits, while travel insurance covers trip-specific risks neither the host nor your home policy will.

Does homeowners insurance cover flood damage?

No. Standard homeowners policies exclude all flood damage regardless of cause.

What does uninsured motorist coverage do?

If you are hit by a driver with no insurance or not enough insurance, uninsured and underinsured motorist coverage pays your medical bills.

When do we use Selective for flood coverage versus NFIP?

Selective private flood wins for Zone X and moderate AE properties where it beats NFIP on price and offers higher limits with ALE coverage.

Is home insurance more expensive on the Alabama coast?

All FAQs

Quick answer: Coastal Alabama (Mobile and Baldwin counties) carries higher hurricane and wind risk, which affects how homes there are insured and often means a separate wind or hurricane deductible. Actual cost depends on location, construction, and coverage.

Coastal Alabama homes cost more to insure because they carry a wind and hurricane exposure inland homes do not. Alabama's statewide average homeowners premium is about $1,704 a year; on the coast the wind portion, a separate percentage wind deductible, and reliance on the residual wind market push it well above that. The drivers are specific, and some are within a homeowner's control.

What is the baseline this is measured against?

Alabama's average homeowners premium across all policy forms was $1,704 in 2022, per the National Association of Insurance Commissioners; the HO-3 form specifically averaged $1,748. That figure is a statewide reference point, not a quote for any specific coastal property - it is what a coastal premium is being compared against, not a prediction of what one costs.

What actually drives the coastal premium higher?

Three factors compound on the coast. First, wind and hurricane exposure itself raises the base rate. Second, coastal policies commonly carry a separate percentage wind or hurricane deductible - insurer-set, typically 1% to 10% of the home's insured value under Alabama Department of Insurance guidance, rather than the flat-dollar deductible an inland policy uses; a 5% deductible on a $300,000 home is $15,000 out of pocket before the policy pays anything. Third, when standard carriers decline to write coastal wind, coverage routes through the Alabama Insurance Underwriting Association residual market, which prices differently than the standard market.

What can a homeowner actually influence?

Mitigation is the lever within a homeowner's control. The Strengthen Alabama Homes program funds fortified-roof upgrades that can lower the wind portion of a premium. In Mobile and Baldwin counties (Wind Zone II), manufactured homes are also underwritten partly on how well the home is anchored, so anchoring quality is a real cost factor for that housing type specifically.

Does this cost picture include flood?

No - flood is a separate policy entirely, priced independently of the homeowners premium discussed here. A coastal cost comparison that stops at the homeowners premium and omits flood understates what coastal insurance actually costs in total.

Example: two Alabama homes of equal value, one in Huntsville and one in Mobile, carry different premiums largely because the Mobile home prices in wind exposure and a percentage hurricane deductible the Huntsville home does not - and that gap is before either homeowner even considers a separate flood policy.

See how Alabama homeowners coverage works, the Strengthen Alabama Homes grant, or how Mobile's hurricane deductible works. See also flood insurance and Alabama insurance requirements. A coverage review can price a specific coastal Alabama address against the state average.