Home Insurance in Madison, Alabama

The median home value in Madison is $398,800, 33% higher than the Madison County median.

The typical home in Madison was built around 2001. Older homes can cost more to insure or rebuild because of aging wiring, roofing and plumbing. About 1% of homes were built before 1960, about 8 points below Madison County's 9%.

The housing stock in Madison is 79% single-family homes and 16% apartments in buildings with 5+ units.

71% of owner-occupied homes in Madison carry a mortgage, and mortgage lenders require hazard insurance for as long as the loan is active.

Madison has an owner-occupancy rate of 74% and a vacancy rate of 3%; unoccupied homes typically need a different coverage form.

63% of homes in Madison are primarily heated with electricity.

Madison County had 3,354 active NFIP flood policies as of September 2026. Its top FEMA-rated hazard is tornado (Relatively High). See the full Madison 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$398,800
Median year built2001
Owner-occupied share74%
Share of owner-occupied homes with a mortgage71%
Top county hazardTornado (Relatively High)
Active NFIP policies in Madison County3,354
Home insurance premium$1,906 - statewide average (NAIC, 2023 data)
Key home insurance figures for Madison, AL

Nearby towns

Sources

Data last updated: 2026-09-29