Sky-High Home Insurance Rates in Gulf Shores

Oct 23, 2017

The risk of flooding, like this scene in the aftermath of 2004's Hurricane Ivan, prompts high insurance rates in Gulf Shores.
Credit Kinfay Moroti / AP

A new study shows Gulf Shores has some of the highest home insurance rates in the country.

The industry website Insurance.com reports Gulf Shores has the fourth highest insurance rate in the U.S. Homeowners living in the coastal community are reportedly paying over five hundred percent more than the national average. Towns along the coast typically have higher rates, due to an increased risk of natural disasters and flooding.

Michelle Megna is the managing editor for insurance-dot-com. She says does not see the situation changing any time soon.

"The insurance industry is kind of a dinosaur, and they move very slowly. Even if they take on a ton of risk, and the rates may go up a little bit, it takes a long time for change to happen."

Home insurance rates can also vary drastically from neighborhood to neighborhood.