Whether you a renting a studio apartment in Birmingham or leasing a house in Mobile it is a good idea to protect yourself from financial losses by purchasing a solid renters insurance policy. Unfortunately, too many renters in Alabama do not realize the importance of having this insurance until it is too late.
If you are among this state’s many tenants, you may want to talk to a local independent agent. These agents work for you, not for an insurance company, so they are free to shop around to find the renters coverage you want at a price you can afford. Contact an insurance agent near you to learn more.
Alabama Rental Statistics
- Alabama residents pay an average of $792 per month in rent.
- Around 31.2% of all homes in Alabama are occupied by renters.
- An estimated 40.9% of renters in this state spend more than 30% of their income on rent and utilities.
How Much Does Renters Insurance Cost in Alabama?
We get it. With a large chunk of your income already going toward your housing costs, you don’t want to shell out even more money on renters insurance. However, you may be surprised by how affordable these policies actually are.
The average renters insurance policy in Alabama costs just $235 a year. That is less than $20 a month. Here are some factors that can make your actual cost higher or lower than this average amount.
- The value of your personal property
- The crime rate and weather risks where your rental home is located
- The size of your deductible
- Whether you are bundling your renters insurance with another policy like car insurance
When you take the time to compare quotes from a few different insurance companies, you can save money by choosing the policy that is offered at the best price. Independent agents make comparison shopping easy.
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What Does Alabama Renters Insurance Cover?
Renters insurance is designed to protect you in a few different ways. A typical policy will give you the following.
- Personal property coverage: Referred to as "contents coverage," this can cover repair or replacement costs if your personal belongings are lost or damaged by covered hazards such as:
- Property crimes, like burglary and vandalism
- Fires, whether they started in your own home or a neighboring unit
- Severe weather events, such as tornadoes, hurricanes, tropical storms, thunderstorms, and windstorms
- Personal liability coverage: Referred to as “renters liability insurance,” this can cover your financial responsibilities if you unintentionally cause injuries, property damage, or financial harm to others. It can cover you against things like the following.
- Injuries or property damage caused by your pets or children
- Accidental injuries sustained by visitors in your home that can be attributed to negligence on your part
- Accusations of libel or slander
- Displacement coverage: Referred to as “loss of use insurance,” this can pay for your temporary living expenses if a covered event like a tornado leaves your home uninhabitable and you must seek alternate accommodations while repairs are made. It can cover things like:
- The cost of staying in a hotel or temporary rental unit
- Meals if your accommodations do not include a kitchen
- Moving expenses if you must move your property into storage or if you need to move to a new apartment
- Temporary storage fees
- Pet boarding costs
When deciding how much property coverage you need, you may want to look at all your belongings, including electronics, clothing, jewelry, kitchenware, and furniture, and think about how much it might cost you to fully replace everything in the event of a total loss.
What about Coverage against Floods in Alabama?
Although renters insurance can cover against hurricanes, it does not cover against the floods that often accompany these storms. Your landlord's insurance will pay to repair flood damage to your home, but not to your personal property.
Renters in ground-floor or basement apartments, and those who rent houses in flood-prone areas may be wondering what their options are.
The only way to have coverage against floods is by supplementing your renters insurance policy with flood insurance. Affordable policies are available through the National Flood Insurance Program (NFIP), a program run by FEMA. Contents-only policies start at less than $10 a month.
How Can an Independent Insurance Agent in Alabama Help?
When you are shopping renters insurance, local independent agents can help. These agents can explain your various options, help you decide on sufficient coverage limits, and find you a suitable policy at a great price. Best of all, consulting an independent insurance agent is free.
There are nearly 350 independent agents in Alabama who are available to assist you with all of your insurance coverage needs. Arrange an obligation-free consultation with an insurance agent near you to get started.
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