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How Are Property Tax and Homeowners Insurance on Homes in Alabama
Buying a House in Alabama, how are the property tax and homeowners insurance
When buying a house in Alabama, you will benefit from relatively low property taxes and moderate homeowners insurance rates compared to many other states in the U.S.
Property Taxes:
Alabama has some of the lowest property tax rates in the country. The average effective property tax rate is approximately 0.33% of a home’s market value, placing it among the states with the lowest property tax rates. For example, if you own a home valued at $200,000, your annual property tax bill would be around $660. However, property tax rates can vary by county within Alabama, so it’s important to check the specific rates in the county where you plan to buy (Tax-Rates.org) (Tax-Rates.org).
Homeowners Insurance:
Homeowners insurance in Alabama can vary widely depending on factors such as the location of the property, the age and condition of the home, and the level of coverage you choose. On average, homeowners insurance in Alabama tends to be higher than the national average due to the risk of natural disasters like hurricanes and tornadoes. The average annual premium for homeowners insurance in Alabama is around $1,300, but this can be higher for homes in coastal areas prone to hurricanes (Tax-Rates.org).
Overall, while property taxes are relatively low, it’s wise to budget for potentially higher homeowners insurance costs, especially if your property is located in an area susceptible to severe weather. For the most accurate and personalized information, consider contacting local tax authorities and insurance providers in Alabama.
tax-rates.org
Alabama Property Taxes By County - 2024
The Median Alabama property tax is $398.00, with exact property tax rates varying by location and county.