Home Insurance in Colony, Alabama
With a median home value of $48,600, Colony is 76% lower than the Cullman County median.
The typical home in Colony was built around 1987. Aging wiring, roofing and plumbing in older homes can push up the cost to insure or rebuild them. About 6% of homes were built before 1960, about 7 points below Cullman County's 13%.
The housing stock in Colony is 62% single-family homes and 38% mobile or manufactured homes. Mobile and manufactured homes typically need a manufactured-home (HO-7) policy rather than a standard homeowners policy.
45% of owner-occupied homes in Colony carry a mortgage, and mortgage lenders require hazard insurance for as long as the loan is active.
The vacancy rate is 15%; vacant or unoccupied homes typically need a different coverage form than an owner-occupied policy. About 85% of occupied homes in Colony are owner-occupied.
In Colony, 89% of homes are primarily heated with electricity. Homes heated with propane can carry added fire risk. Fuel-tank leaks and spills are often excluded from standard homeowners policies.
Cullman County's top FEMA-rated hazard is strong wind (Relatively High), per FEMA's National Risk Index. Cullman County had 80 active NFIP flood policies as of September 2026. See the full Cullman County home insurance overview for all FEMA hazard ratings and flood coverage details.
According to the NAIC homeowners insurance report (2023 data), a standard HO-3 homeowners policy in Alabama carries a statewide average premium of $1,906 per year.
Key figures
| Median home value | $48,600 |
|---|---|
| Median year built | 1987 |
| Owner-occupied share | 85% |
| Share of owner-occupied homes with a mortgage | 45% |
| Top county hazard | Strong Wind (Relatively High) |
| Active NFIP policies in Cullman County | 80 |
| Home insurance premium | $1,906 - statewide average (NAIC, 2023 data) |
Nearby towns
Sources
Data last updated: 2026-09-29
- U.S. Census Bureau Gazetteer Files (2024)
- U.S. Census Bureau, American Community Survey 2020-2024 5-Year Estimates (2024)
- FEMA National Risk Index (December 2025)
- FEMA OpenFEMA NFIP Redacted Policies v3 (2026)
- NAIC Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owners Insurance: Data for 2023 (published 2026) (2023)