Home Insurance in Cottonwood, Alabama
Homes in Cottonwood carry a median value of $111,500 - 39% lower than the Houston County median.
The typical home in Cottonwood was built around 1973. About 31% of homes were built before 1960, about 17 points above Houston County's 14%. Older homes can cost more to insure or rebuild because of aging wiring, roofing and plumbing.
The housing stock in Cottonwood is 62% single-family homes and 26% mobile or manufactured homes. The rest are 2-4 unit or other housing types. Mobile and manufactured homes typically need a manufactured-home (HO-7) policy rather than a standard homeowners policy.
In Cottonwood, about 37% of owner-occupied homes have a mortgage - lenders require hazard insurance on every mortgaged home.
The vacancy rate is 16%; vacant or unoccupied homes typically need a different coverage form than an owner-occupied policy. About 67% of occupied homes in Cottonwood are owner-occupied.
Most homes in Cottonwood - 92% - are primarily heated with electricity.
Houston County's top FEMA-rated hazard is tornado (Relatively High), per FEMA's National Risk Index. Houston County had 324 active NFIP flood policies as of September 2026. See the full Houston County home insurance overview for all FEMA hazard ratings and flood coverage details.
In Alabama, the statewide average premium for a standard HO-3 homeowners policy is $1,906 per year (NAIC, 2023 data).
Key figures
| Median home value | $111,500 |
|---|---|
| Median year built | 1973 |
| Owner-occupied share | 67% |
| Share of owner-occupied homes with a mortgage | 37% |
| Top county hazard | Tornado (Relatively High) |
| Active NFIP policies in Houston County | 324 |
| 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)