Alabama Homeowners Insurance

Owning a home in Alabama means living with gorgeous pines, warm summers, college football Saturdays—and weather that can turn on a dime. From tornado outbreaks in the spring to late-season tropical systems along the Gulf, our state sees a wide range of risks that directly shape how homeowners’ insurance works here. If you’re shopping a policy for the first time, or it’s been a few years since you looked closely at your coverage, this guide breaks down the essentials, common pitfalls to avoid, and how Gorowsky Insurance helps you get it right without the guesswork.

The building blocks of an Alabama homeowners policy

A standard homeowners policy (often called HO-3) typically includes:

• Dwelling (Coverage A): Rebuilds the structure itself.
• Other structures (Coverage B): Fences, sheds, detached garages.
• Personal property (Coverage C): Your stuff—furniture, clothing, electronics.
• Loss of use (Coverage D): Pays for temporary living expenses if your home is uninhabitable after a covered loss.
• Personal liability (Coverage E): Covers bodily injury or property damage for which you’re legally responsible.
• Medical payments (Coverage F): Small, no-fault medical coverage for guests.

Those categories look simple, but the fine print—how losses are valued, what’s excluded, and how deductibles apply—matters a ton in Alabama.

Alabama-specific risks to keep front and center

• Wind and hail: Many Alabama policies apply a separate percentage deductible (often 1–5% of Coverage A) for wind/hail or named storms. That’s very different from a flat $1,000 deductible and can be a shock at claim time.
• Severe convective storms and tornadoes: Construction quality, roof age, and roof covering type can influence your rate and claim experience.
• Water (but not flood): Standard policies generally cover sudden water damage (like a burst pipe) but exclude flood (rising water from outside). If your home is in a low-lying area or near a waterway, you’ll want separate flood insurance.
• Heat and humidity: Long, humid summers accelerate wear and tear—important because wear and tear is excluded. Maintenance matters, and insurers can deny claims tied to long-term neglect.

The most common pitfalls when buying homeowners insurance

1. Underinsuring the dwelling (Coverage A).
   Replacement cost isn’t the price you paid for the home or your mortgage balance—it’s what it costs to rebuild today, including labor, materials, debris removal, and code upgrades. Construction inflation can outpace your last policy review. If Coverage A is too low, you risk a shortfall after a total loss.
2. Missing or misunderstanding special deductibles.
   That attractive premium may hide a 5% wind deductible. On a $400,000 home, that’s $20,000 out of pocket before coverage kicks in for wind damage. Know your all-perils and wind/named-storm deductibles and pick numbers you can truly afford.
3. Actual Cash Value (ACV) on the roof.
   Some policies default to ACV for older roofs—paying the depreciated value rather than full replacement cost. After a hailstorm, ACV can leave you thousands short. Ask for Replacement Cost on roof surfaces when available, and watch for “cosmetic damage” exclusions on metal roofs.
4. Assuming flood is included.
   It isn’t. Even outside high-risk zones, heavy rain or stalled tropical systems can push water where it’s never been. A separate flood policy (from the NFIP or private markets) can be surprisingly affordable for many homes not required to carry it.
5. Overlooking sub limits on valuables.
   Jewelry, firearms, silverware, collectibles, and certain electronics often have low theft sub limits (e.g., $1,500–$5,000). If you have higher-value items, schedule them with a personal articles endorsement for broader coverage and no deductible.
6. Skipping Ordinance or Law coverage.
   After a major loss, you may have to rebuild to current building codes. Ordinance or Law coverage helps pay for those upgrades (think: electrical, roof decking, hurricane clips). Without it, you eat the difference. Many policies include a small percentage by default—bumping it up is inexpensive and smart.
7. Ignoring water backup and service line coverages.
   Water/sewer backup (when a drain or sump overflows) is typically excluded unless you add it. Likewise, service line coverage (for underground pipes and wiring from the street to your home) is a modestly priced add-on that can save thousands.
8. Choosing liability limits that are too low.
   Medical costs and legal judgments can escalate quickly. Consider at least $300,000–$500,000 in personal liability, and ask about a personal umbrella policy to extend liability limits over your home and auto.
9. Not capturing discounts, you qualify for.
   Insurers often credit IBHS FORTIFIED roofs, wind mitigation features, monitored alarms, water leak sensors, and certain roof shapes/materials. If you’ve made improvements, make sure they’re on record.
10. Buying on price alone.
    Price matters—but claims handling, contractor networks, local catastrophe experience, and policy language matter more. The cheapest policy can be the costliest mistake on the day you need it.

Smart add-ons many Alabama homeowners choose

• Extended or Guaranteed Replacement Cost: Adds a cushion (e.g., +25% or more) if rebuild costs spike after a widespread event.
• Matching coverage for siding/roof: Helps when only part of your exterior is damaged and exact matches aren’t available.
• Equipment breakdown: Covers sudden mechanical/electrical breakdowns (HVAC, major appliances, home systems) not caused by a covered peril.
• Cyber and identity theft: Increasingly relevant for connected households.

How to compare policies the right way

1. Start with an accurate rebuild estimate. Provide square footage, roof type/age, exterior materials, number of stories, custom features, and recent upgrades.
2. Normalize deductibles. Compare quotes with the same all-perils and wind/hail deductibles so you’re not tricked by apples-to-oranges pricing.
3. Check loss settlement terms. Look for Replacement Cost on dwelling and personal property. If ACV appears anywhere, know why.
4. Scrutinize endorsements and exclusions. Especially around wind, roof surfaces, cosmetic damage, and water.
5. Model your worst-case out-of-pocket. Add the highest deductible you’d likely face to a few common gaps you plan to self-insure. If that number makes you queasy, adjust coverage.

How Gorowsky Insurance helps you avoid the traps

As a local, independent agency, Gorowsky Insurance isn’t tied to a single carrier. That means we can compare multiple A-rated insurers side-by-side—same coverage, same deductibles—so you see true value, not just a headline price. Here’s how we make the process simpler and safer:

• Risk-first coverage design. We start by mapping your specific exposures—roof age and type, proximity to water, elevation, prior losses, dogs/pool/trampoline, detached structures—and then tailor coverage accordingly.
• Rebuild-cost accuracy. Using professional replacement-cost tools (and your home’s details), we calibrate Coverage A so you’re not underinsured. We’ll discuss Extended/Guaranteed Replacement options when they make sense.
• Deductible coaching you can bank on. We explain the real dollars behind percentage wind deductibles and help you pick a structure you can live with if a storm hits.
• Roof and wind guidance. We hunt for Replacement Cost roof options, explain any cosmetic-damage limitations in plain English, and help you capture mitigation discounts for fortified features or alarms.
• Complete water strategy. We pair your homeowners policy with water backup and, when appropriate, flood insurance, so you’re covered from the most common water scenarios—inside and out.
• Valuables and liability checkup. We review sublimit for jewelry, collectibles, and firearms and set up scheduling if needed. Then we right-size your liability and discuss umbrella protection for true peace of mind.
• Claims-day advocacy. If something happens, you’re not just dialing a 1-800 number. We help you report the claim, interpret estimates, and keep the process moving.
• Annual tune-ups. Prices and materials change. So does your life. We review your policy each year to adjust for remodels, purchases, or changing market conditions—before they become coverage problems.

Serving Alabama’s Baldwin County including: Daphne, Spanish Fort, Fairhope ,Point Clear, Loxley, Foley, Silver Hill, Bay Minette, Elberta, Summerdale, Magnolia Springs, Robertsdale, Stapleton, Stockton, Orange Beach,Perdido, Perdido Beach, Lillian, Bon Secour, and Gulf Shores. Mobile County including Mobile, Semmes, Sarah Land, Theodore, Dauphin Island, Tillmans Corner, Grand Bay, Citronelle, Bayou La Batre, Satsuma

“Glen Gorowsky went out of his way to make sure I had what I needed in my insurance policy. He is knowledgeable about what Mobile and Baldwin County insurance companies are writing and he is honest about what to offer. See Glen before you commit to an insurance policy”

-Lisa Johnson, CPA 

“Immediately available and always provides the best service with honesty and integrity.”

Heather Augustin, Realtor at Coldwell Banker.