Home Insurance in Pelham, Alabama
Homes in Pelham carry a median value of $299,800 - 8% lower than the Shelby County median.
The typical home in Pelham was built around 2001. About 2% of homes were built before 1960, about 2 points below Shelby County's 4%. Because older housing stock often has aging wiring, roofing or plumbing, it can cost more to insure or rebuild.
The housing stock in Pelham is 91% single-family homes, 4% apartments in buildings with 5+ units and 4% mobile or manufactured homes. Mobile and manufactured homes typically need a manufactured-home (HO-7) policy rather than a standard homeowners policy.
70% of owner-occupied homes in Pelham carry a mortgage, and mortgage lenders require hazard insurance for as long as the loan is active.
The vacancy rate is 2%; vacant or unoccupied homes typically need a different coverage form than an owner-occupied policy. About 84% of occupied homes in Pelham are owner-occupied.
Most homes in Pelham - 59% - are primarily heated with natural gas.
FEMA rates Shelby County's overall risk as Relatively Moderate, led by tornado (Relatively High). Shelby County had 579 active NFIP flood policies as of September 2026. See the full Shelby 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 | $299,800 |
|---|---|
| Median year built | 2001 |
| Owner-occupied share | 84% |
| Share of owner-occupied homes with a mortgage | 70% |
| Top county hazard | Tornado (Relatively High) |
| Active NFIP policies in Shelby County | 579 |
| 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)