Being a landlord is a tough job. Not only do you have to keep your own property in tip-top shape, but you also have to worry about tenants having the same mindset toward the residence. From landscaping and plumbing to late fees and taxes, a landlord has a difficult job. One of the best ways to protect your rental property is to carry landlord insurance. This insurance protects you from financial disaster stemming from an incident that occurs on your property. Even a small slip and fall can spell tens of thousands of dollars in a lawsuit judgment, and landlord insurance can be there to help absorb the blow.
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Alabama Landlord Snapshot
- 31.25 percent of homes in Alabama are rentals.
- The average amount for rent is $650 per month.
- For Alabama, median monthly gross rent, at a fraction of median household income, was 19.89% in previous years.
Whether you own a house, townhome, condo, apartment complex, or mobile home, landlord insurance is a wise investment. Even with risks you can't control, like severe weather events, accidents, or structural damage, landlord insurance can help.
What is Landlord Insurance in Alabama?
Landlord insurance is a set of policies you purchase in order to protect your Alabama real estate. A typical landlord insurance policy in AL may resemble the following:
- Property insurance: This coverage protects the property you own. For a landlord, this may include a building, furnishings in the rental that you provide, flooring, or even tools left on the premises in order to make repairs.
- Liability insurance: Liability insurance is designed to protect you from lawsuits and legal claims, including negligence. If you have a tenant who reports a broken electrical outlet and you neglect to fix it, resulting in a fire, you may be held liable for the damages. Additionally, if someone is walking up to your rental and slips, spraining their ankle, they may be able to file an injury claim against you.
- Loss of use: Loss of use coverage can kick in after your property becomes damaged due to a covered incident. It can help replace your lost income while repairs are being made.
- Other non-covered incidents: Unfortunately, some of the most damaging events, such as an earthquake or flood, are not covered by typical landlord insurance policies. You should consider purchasing coverage for these incidents.
- Umbrella insurance: Umbrella insurance, typically sold in $1 million increments, can extend your overall liability coverage, offering you more liability coverage to draw from. It may also be cost beneficial, since you may be able to lower the liability on your other policies.
What About My Tenant's Belongings?
Tenant belongings are not covered by landlord insurance. Typically, landlord insurance covers only to the studs of the building, structure-wise. Any property belonging to the tenant will not be covered by the insurance policy. When enrolling a new tenant, it may be a wise idea to discuss the benefits of renters insurance. Renters insurance in AL can offer tenants liability coverage, property coverage, and even relocation coverage.
How Much Will a Landlord Insurance Quote Be in Alabama?
Landlord insurance costs vary greatly. When you're looking for landlord insurance quotes in Alabama, be sure to be familiar with the following:
- Number of rentals
- Types of buildings
- Location of rentals
- If there is a pool/fitness center/playground on the premises
- If you rent to people with pets
- If you rent to smokers
- If rentals have electrical/plumbing up to code
- If a security system is installed
- If fire sprinklers/smoke detectors are installed
- Desired coverage amounts
- Desired deductibles
All of these factors, plus more, will be taken into consideration in order to give you an accurate quote.
Are There Discounts Available on Landlord Insurance in Alabama?
Just like the majority of insurance policies, landlord insurance offers subscriber discounts. When searching for landlord insurance quotes, be sure to ask about the following discounts to see if you qualify:
- New customer discount
- Multi-policy discount
- Loyal customer discount
- Claims-free discount
- Good credit discount
- Security system discount
- Upgrades discount
- Industry affiliation discount
This list is not exhaustive, and every insurance company has different discounts, so be sure to ask about any discounts you may not be aware of.
How Do I Get Landlord Insurance in Alabama?
Searching for a landlord insurance policy can be confusing - intricate wording, funny exclusions, and even getting the run-around. Our agents are always available to help you, from explaining policies and finding discounts, to suggesting coverage and even help with filing a claim. We want you to get the best coverage at the best price.