Alabama Renters Insurance
Here’s everything you need to know about rental insurance in Alabama.
Photo caption: Use insurance broker Jerry to find a great bundling deal on your renters insurance.
Written by Nick Kunze
Reviewed by Melanie Reiff
The average
Alabama
renters insurance policy costs $203 a year. Rental insurance gives you coverage for your property, apartment loss of use, and any liability payments for those injured in your rental home. After you get approved for the apartment of your dreams, you’re probably not thinking about insurance—but you should be! Renters insurance is a simple, affordable way to financially protect yourself while renting.
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comparison and broker app Jerry
created this guide to teach you everything you need to know about renters insurance
in Alabama. Read on to learn the ins and outs of rental insurance, how to create your policy, and a few great tips to save you money on your insurance bill. RECOMMENDED
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What is renters insurance?
Renters insurance can be purchased by anyone renting an apartment, home, or condo. It provides financial protection for your property, plus some liability coverage.
A renters insurance policy typically includes the following coverages:
- Property coverage (Coverage C): This covers the actual cash value (ACV) or replacement cost of your belongings if they’re destroyed or lost by a covered peril.
- Loss of use coverage (Coverage D): This pays for living expenses, like hotel rooms or food delivery, if you are forced out of your rental due to damage to the property. This is also known as additional living expenses coverage.
- Personal liability (Coverage E): If someone is injured or their property is damaged in your rental, you’re covered for whatever you’re legally required to pay, including court and lawyer fees.
- Medical payments (Coverage F): This covers medical expenses if someone is injured on your property.
To calculate the amount of your property coverage, you’ll need to inventory your possessions. This includes art, electronics, jewelry, and furniture.
What does renters insurance cover?
Like homeowners insurance, renters insurance only covers you for named perils. These are accidents, disasters, or incidents specifically named in your policy.
While the exact coverages vary from policy to policy, most renters insurance policies include:
- Fire
- Theft
- Frozen plumbing
- Windstorm
- Vandalism
- Hail
- Lightning
- Impact by a vehicle
- Falling objects
- Explosion
Read your policy to know what you’re covered for. Most insurers will have additional perils you can add to your policy for an additional fee.
What does renters insurance not cover?
Renters insurance has an impressive amount of coverage, but it won’t protect everything you own. Here are a few types of items that won’t be covered:
- Work-related possessions: If you work from home or run a business out of your rental, any work-related items might not be covered. This includes things like a work laptop. These items are not considered your personal property and thus are uncovered.
- Valuables: Highly expensive items—from your finest jewelry to a collector’s edition baseball card—may not be covered. Your most valuable possessions may need additional, specialty coverage.
- Your vehicle: Your car won’t be covered by rental insurance, even if it is parked on your rental property. To protect yourself from car theft, you’ll need an automotivecomprehensive insurance policy.
Is renters insurance required in Alabama?
Renters insurance is not required in Alabama. However, there is a chance your landlord will require you to have a renters insurance policy to get approved.
Even when it is not required, investing in renters insurance is a no-brainer! Renters insurance is very affordable, costing the average Alabama renter only $200 a year. It can save you thousands of dollars in losses if your rental is robbed or affected by a disaster.
How to build an Alabama renters insurance policy
To build your renters insurance policy, you need to inventory your personal assets. Go room-to-room and, for all of your furniture, electronics, art, and appliances, make note of their:
- Quantity
- Purchase date
- Purchase price
- Brand number
- Serial number (if available)
Be sure to take pictures of everything, especially more valuable items. This information will simplify the claims process if you ever need to make a claim.
When starting a policy, you’ll need to decide your personal liability limit. Your landlord may require a certain amount of liability insurance (usually between $300,000 and $500,000). If there is no requirement, you can choose a much lower limit, like $100,000.
Actual cash value vs. replacement cost
When selecting your policy, you’ll have two options: do you want your belongings to be covered for their actual cash value (ACV) or replacement cost?
Actual cash value allows you to claim the price of your item with depreciation considered. For example, a television that you bought a decade ago for $2,000 might only be worth $300 now with depreciation. That means your insurer would only pay $300 if it was stolen or damaged due to a named peril.
With replacement cost, you’ll be given the amount it costs to fully replace the item. For the TV example, that means $2,000.
While replacement cost gives you better coverage, it comes at a higher price. Whether you can afford the more expensive policy is up to you.
How to find cheap renters and car insurance
Renters insurance is one of the cheapest policies available. That doesn't mean you’re not looking for a deal, however!
A great way to get renters insurance is to bundle it with automotive insurance. Bundling multiple insurance policies from one provider can earn you a discount anywhere between 5% and 25% of your total costs. Considering the low cost of renters insurance, finding the right bundling deal could completely pay for your
renters insurance
.If you want to find a great automotive bundling deal without any hassle, you need to download
Jerry
. Jerry is an insurance brokerage app that makes comparison shopping fast and user-friendly. A quick sign-up will give you access to over 50 competitive insurance quotes. Just check out the quotes, find the right policy for you, and that’s it! When you’re ready to start your new policy, Jerry will even help with the paperwork.
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Is renters insurance worth it?
Definitely. Renters insurance is very inexpensive and can save you thousands of dollars in your time of need.
What is the average cost of renters insurance in Alabama?
On average, renters insurance costs $203 a year for Alabama renters. This is $44 higher than the national average of $159 a year.
You could save 15% or more on renters insurance by bundling
Bundle your renters and auto insurance with Jerry and save!
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