Home Insurance in Montgomery, Alabama
With a median home value of $161,900, Montgomery is 6% lower than the Montgomery County median.
Older homes can cost more to insure or rebuild because of aging wiring, roofing and plumbing. The typical home in Montgomery was built around 1978. About 22% of homes were built before 1960, about 2 points above Montgomery County's 20%.
In Montgomery, the housing stock is 73% single-family homes, 20% apartments in buildings with 5+ units and 2% mobile or manufactured homes.
62% of owner-occupied homes in Montgomery carry a mortgage, and mortgage lenders require hazard insurance for as long as the loan is active.
The vacancy rate is 14%; vacant or unoccupied homes typically need a different coverage form than an owner-occupied policy. About 54% of occupied homes in Montgomery are owner-occupied.
Most homes in Montgomery - 50% - are primarily heated with electricity.
Montgomery County's top FEMA-rated hazard is tornado (Relatively High), per FEMA's National Risk Index. Montgomery County had 831 active NFIP flood policies as of September 2026. See the full Montgomery County home insurance overview for all FEMA hazard ratings and flood coverage details.
The statewide average premium for a standard HO-3 homeowners policy in Alabama is $1,906 per year, according to the NAIC homeowners insurance report (2023 data).
Key figures
| Median home value | $161,900 |
|---|---|
| Median year built | 1978 |
| Owner-occupied share | 54% |
| Share of owner-occupied homes with a mortgage | 62% |
| Top county hazard | Tornado (Relatively High) |
| Active NFIP policies in Montgomery County | 831 |
| 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)