Hurricane insurance coverage is mandatory. Because of the frequency of hurricanes in the region, Alabama home owner insurance policies must contain a hurricane deductible.
Closing costs: Average closing costs for a real estate transaction in 2018 ran about 1.56% of the sale price of the property. Closing costs would include mortgage fees, appraisal fees, title insurance, real estate agent's commissions, any prepaid costs (such as property taxes), mortgage insurance, surveys, notary fees, and recordation costs.
Caveat emptor laws: Alabama is what's known as a "caveat emptor" state, or "Let the buyer beware". This means that the seller is not required by law to disclose any issues with respect to the property's condition during the transaction. It's up to the buyer to discover any defects before closing the deal. However, there are some exceptions to this rule: (1) if a fiduciary relationship exists between the buyer and the seller; (2) if the seller is aware of any health or safety risk that could arise from a condition in the home (such as asbestos); and (3) if the buyer directly questions the seller about a specific defect.