Shop for and price check home and flood insurance rates and coverage every few years with several different insurance companies or agents. 

Follow these steps to make to ensure a property has adequate coverage and is receiving the best value.

1 - Gather the following information about the property:

  • Year Built
  • Square Footage
  • When upgrades were made, if known. (New HVAC, roof, wiring, plumbing, etc.)
  • Construction type (wood frame, wood frame with brick, concrete, concrete block, etc.)

2 - Buy enough homeowners insurance to cover:

  • The cost to replace the structure of a home and any additional structures (detached garage, shop, shed, etc.)
    • Not the market value of your property, but the cost to rebuild it today, at today's costs. 
    • A good gauge to estimate these costs is the price to build a home per square foot. 
  • The cost to replace your personal belongings.
  • The cost of additional living expenses if you have to live elsewhere during repairs
  • Liability to others

3 - Ask about additional coverages:

  • Replacement Cost Value (RCV) insurance - RCV pays to replace property or belongings at today's prices. 
    • The alternative to RCV is ACV or Actual Cash Value insurance, which pays to replace property or belongings at a depreciated amount. ACV = Replacement Cost Value minus depreciation. Some items can depreciate to a value of $0.00. 
  • Law and Ordinance - Typically pays up to 10% above your covered amount to rebuild to the current building code
  • Sewer or Water Backup - Pays to repair damage caused by water backing up into a home through the plumbing
  • Flood Insurance - Flood damage is not covered under standard homeowners insurance policies. If the property is near a flood zone, flood insurance is a good investment. Over 20% of flood insurance claims are from homeowners outside of a high-risk flood area. 
  • Wind Insurance - In the coastal areas of 19 states, wind insurance is a separate policy. Damage caused by high winds is not covered under a standard homeowner's insurance policy. 
  • FORTIFIED Roof™ Endorsement - This endorsement will pay to install a FORTIFIED Roof if the property requires a roof replacement. 

4 - Download and use the Homeowners Insurance Comparison Tools and Top 10 Questions 

  • These questions will ensure property owners have all the information they need to be adequately insured.

Want more information?

Use the Alabama Coastal Insurance Shopper's Guide to better understand:

  • The elements of coverage
  • Flood Insurance 
  • Buying homeowners insurance
  • Comparing homeowners Insurance

This guide was written for coastal Alabama Homeowners, but much of the information is useful to any homeowner. 

Have Questions?

We can help.

Contact Us