Renters Insurance in Alabama

Last modified: September 11, 2021

Renters insurance in Alabama isn’t required by the law. Still, many landlords and property management companies require tenants to carry renters insurance.  

Even if that’s not the case, it is highly recommended to carry renters insurance in Alabama due to the state’s susceptibility to extreme weather and natural disasters. 

To help Alabama tenants find the best renters policy according to their needs and budget, we have put together a list of the top-rated renters insurance providers in the state. The article also includes a brief guide on how to choose the best renters insurance in Alabama, highlighting the key factors tenants need to consider when choosing a policy.   If you want to inform even better – check our list of the best renters insurance companies. 

Before we provide you the list of the best renters insurance companies in Alabama, let’s first take a look at how we have shortlisted these companies.   

Our Methodology 

When it comes to finding the best insurance company, most people only consider the price. While the price is an important factor as average renters insurance in Alabama is higher than the national average, it shouldn’t be the only aspect to consider when choosing a renters policy

To give our readers a compound view and help them make a truly informed decision, we adopted a comprehensive approach while evaluating the various renters insurance companies in Alabama. 

In addition to price, we also considered the coverage each company offers, including both within the standard renters policy and additional options, user reviews, ratings on multiple leading platforms, claims handling, and customer support. With regards to coverage, we looked for companies that offer at least the following basic coverage options as part of their standard renters policy:

  • Personal property coverage
  • Liability coverage
  • Additional living expenses coverage
  • Medical payment coverage (that protects your guests in case of an incident)

To gain an even better perspective, we generated renters insurance quotes in Alabama using the following metrics:

  • Personal property coverage – $20,000
  • Liability coverage – $100,000
  • Medical payment coverage – $1,000
  • Deductible – $500
  • Loss of Use – $0

Now that you know how we have shortlisted the best renters insurance in Alabama, let’s take a look at the list and what each company has to offer.

Best Companies for Renters Insurance in Alabama

Alabama renters insurance is higher than the national average, so do not expect the companies to have the same rates as they do in other U.S. states.  If you are looking for renters insurance outside of Alabama, make sure to check our list of best renters insurance companies in the USA.

To help you save money, we found companies that offer cheap renters insurance in Alabama. So, when we say that the following companies provide the best renters insurance in Alabama, we not only refer to the coverage they provide or their services, but also to their low prices.

An important point to note here is that all of our shortlisted companies offer wind damage protection as part of their standard renters policy, which means you won’t have to buy Alabama renters insurance for tornado separately.

Here are our picks for the best renters insurance, Al:

State Farm

State Farm may not offer the cheapest renters insurance in Alabama, but it is the best renters insurance provider in the state. The company is highly regarded by its customers due to its incredible customer service and claim handling process. 

It also has a very low complaint ratio, which is commendable in the insurance industry. State Farm is rated as the third-best renters insurance in the country by J. D. Power. The price of State Farm’s renters policy is just a teeny bit higher than the cheapest renters insurance in Alabama.

Let’s take a look at what State Farm renters insurance Alabama includes:

Coverage Details

  • Personal property – No limit
  • Liability – $100,000, $300,000, $400,000, $500,000, $750,000, and $1,000,000
  • Loss of use – No limit
  • Medical payments for guests – $1,000 to $5,000

Optional Coverage Plans

  • Earthquake damage
  • Waterbed
  • Computer
  • Jewelry
  • Identity restoration 
  • Additional liability coverage
  • Incidental business liability 
  • Additional business property

Financial Strength and Customer Support Ratings

  • NAIC Ratio – 0.35

  • J.D. Power Rating – 5/5

  • AM Best Rating – A++

  • BBB Rating – Not rated

Average Cost

State Farm renters insurance in Alabama costs $220 per year, which makes a little over $18 per month. Note that this is approximately 37% cheaper than the state average.

Pros 

  • Highly affordable
  • Doesn’t have a limit on personal property and loss of use
  • Offers a wide range of additional coverage options 
  • Has excellent customer satisfaction rating

Cons

  • Limited discount options
  • The standard policy doesn’t cover water damage

Liberty Mutual

Your hunt for the cheapest renters insurance, Alabama ends here – Liberty Mutual provides the most affordable renters policy in Alabama. This, when coupled with the fact that the company has been in business for over 100 years and offers amazing discounts, makes Liberty Mutual one of the most popular renters insurance providers in the state.

That said, Liberty Mutual isn’t perfect for all tenants because it provides a low coverage limit. The upper limit for personal property protection is only $25,000. Plus the company has an average J.D. Power rating and weak customer service.

To sum it all up, Liberty Mutual presents the perfect example of the saying “you get what you pay for”. If the price is the primary metric for you or you don’t need high coverage, Liberty Mutual’s cheap renters insurance, Al, is a fairly decent option.

Coverage Details

  • Personal property – $15,000 to $25,000
  • Personal liability – $100,000 to $1,000,000
  • Medical payment to others – $1,000 to $5,000 
  • Additional living expenses/ loss of use – 20% of personal property

Optional Coverage Plans

  • Blanket jewelry 
  • Personal property replacement cost
  • Earthquake damage 

Financial Strength and Customer Support Ratings

  • NAIC Ratio – 0.65

  • J.D. Power Rating – 3/5

  • AM Best Rating – A

  • BBB Rating – A

Average Cost 

Liberty Mutual’s renters insurance in Alabama will only cost you $216 per year or $18 per month.

Pros 

  • Offers the cheapest renters insurance in Alabama
  • Provides a good range of easily attainable discount options
  • Allows you to choose from replacement cost coverage and actual cash value for personal property coverage

Cons

  • Has low upper limit for personal property coverage
  • Has weak customer service

Travelers

Of all the insurance companies that we researched to put together this list of the best renters insurance in Alabama, Travelers provides its customers with the maximum options to extend their coverage through endorsements. It also offers additional coverage that only a few insurance companies offer.

The only factor that can potentially be a bummer for some tenants is that Travelers doesn’t allow monthly payments; it only accepts yearly payments up-front. 

Coverage Details

  • Personal property – $30,000 to $100,000
  • Liability  – $100,000, $300,000, and $500,000
  • Loss of use – 1%, 5%, 10%, 30%, 50% 75% or even 100% of personal property
  • Payments of medical expanses to others – $1,000, $2,000, $5,000, and $10,000

Optional Coverage Plans

  • Personal property replacement
  • Additional coverage package
  • Equipment breakdown
  • Identity theft coverage
  • Water backup protection

Financial Strength and Customer Support Ratings

  • NAIC Ratio – 0.46

  • J.D. Power Rating – 3/5

  • AM Best Rating – A++

  • BBB Rating – A+

Average Cost 

Travelers’ renters policy in Alabama costs $263 on average. This would equate to $22 per month. As mentioned above, Travelers doesn’t allow monthly payments.

Pros 

  • Among the oldest insurance companies in the U.S.
  • Provides multiple financial coverage options for each category of renters insurance
  • Offers unique additional coverage options

Cons

  • Doesn’t offer personal property coverage for less than $30,000
  • Only accept yearly, up-front payments

Allstate

The fact that Allstate Corporation was founded during the Great Depression and successfully survived through that period is alone enough to convince people of its reliability. Allstate insurance has a poor J. D. Power rating and provides the second-most-expensive renters insurance in Alabama

Coverage Details

  • Personal property – $25,000 to $150,000
  • Liability coverage – $100,000 to $500,000
  • Guest medical coverage – $1,000 to $5,000
  • Loss of use – No limit

Optional Coverage Plans

  • Scheduled property coverage (for expensive items that are not covered by personal property coverage)
  • Identity restoration coverage
  • Increased coverage on business property
  • Personal umbrella policy
  • Flood insurance

Financial Strength and Customer Support Ratings

  • NAIC Ratio – 0.76

  • J.D. Power Rating – 2/5

  • AM Best Rating – A+

  • BBB Rating – A+

Average Cost 

Allstate’s renters insurance in Alabama is the most expensive in the state. It costs an average of $34 per month, which makes $408 per year.

Pros 

  • Offers a special discount for seniors along with multiple bundle discounts
  • Provides customers the option to choose from RCV and ACV for personal property coverage
  • Offers great bundle insurance rates

Cons

  • Offers the second most expensive renters policy in the state
  • Covered losses aren’t clearly mentioned on the company’s website
  • Has poor customer satisfaction rating

Farmers

Farmers Insurance Group is the most expensive renters insurance provider in Alabama. The company has been operational for over 90 years and even survived through the Great Depression, making it a reliable name in the insurance industry. 

Here’s what it offers to Alabama tenants:

Coverage Details

  • Personal property coverage – No limit
  • Liability coverage – $100,000, $200,000, $300,000, and $500,000
  • Loss of use – 20% of personal property
  • Medical payments to others – $1,000 to $5,000

Optional Coverage Plans

  • Extended personal liability coverage
  • Additional replacement cost coverage
  • Identity shield

Financial Strength and Customer Support Ratings

  • NAIC Ratio – Not available 

  • J.D. Power Rating – 2/5

  • A.M Best Rating – A

  • BBB Rating – B+

Average Cost 

Farmers provides the most expensive renters insurance in Alabama. The standard renters policy of Farmers costs $51 in Alabama, making over $600 dollars per year.

Pros 

  • Offers low deductible options 
  • Provides discounts to certain professionals, smoke-free houses, and houses with protective devices 

Cons

  • Provides renters insurance in Alabama at the highest price
  • Limited additional coverage options
  • Poor J. D. Power and average BBB rating 

Safeco

Safeco may not be as well-known as other insurance companies on our list, but it is a reliable name in the industry. Let’s take a look at what  renters policy for Alabamians includes:  

Coverage Details   

  • Personal property protection (both at home and in your car)
  • Liability coverage
  • Living expenses (for up to 24 months)
  • Medical payments for guests

Optional Coverage Plans

  • Valuable items
  • Identity recovery
  • Personal property replacement cost protection 

Financial Strength and Customer Support Ratings

  • NAIC Ratio – 1.12

  • J.D. Power Rating – 4/5

  • AM Best Rating – A

  • BBB Rating – A+

Average Cost 

Safeco’s Alabama renters insurance costs an average of $19 per month. 

Pros

  • Provides multiple discount offers
  • Has a strong financial rating

Cons

  • Doesn’t allow customers to buy insurance online
  • Average customer service 

Nationwide

Nationwide offers the most comprehensive renters policy for Alabamians. Here’s what it includes:

Coverage Details

  • Contents (personal property coverage) – No limit
  • Personal liability coverage – $100,000 to $500,000
  • Loss of use – 20% of personal property 
  • Medical payments to others – $1,000 to $5,000
  • Building additions and alterations – 10% of personal property
  • Credit card misuse – $500, $1,000, $2,500, $5,000, $7,500, and $10,000

Optional Coverage Plans

  • Valuable plus; for high-value items   
  • Theft extension
  • Water backup
  • Earthquake
  • Brand new belongings 

Financial Strength and Customer Support Ratings

  • NAIC Ratio – 0.50

  • J.D. Power Rating – 2/5

  • AM Best Rating – A+

  • BBB Rating – A+

Average Cost 

Nationwide’s renters insurance in Alabama costs around $18.5 per month, which makes a little over $220 per year.

Pros 

  • Provides the most comprehensive coverage as part of the standard renters policy
  • Offers multi-policy, claim-free, and protective devices discounts

Cons

  • Has a poor customer satisfaction rating
City Average Cost Per Month
Birmingham $30
Montgomery $31
Mobile $47
Huntsville $28
Tuscaloosa $26

 

Tuscaloosa has the cheapest renters insurance in Alabama, whereas renters insurance in Mobile, Al, is the most expensive.

A Brief Buyer’s Guide to Choosing the Best Renters Insurance in Alabama 

There’s no Alabama renters insurance law that requires tenants to carry a renters policy. Many landlords, apartment complexes, and property management companies require tenants to have a renters policy

Although the average cost of renters insurance in Alabama is higher than the national average, it’s only wise that all Alabamians who live in rented properties get their personal items and valuables (jewelry, watches, antiques) protected with a good renters policy. This is because of the state’s high susceptibility to extreme weather conditions and natural disasters, like tornadoes, floods, and earthquakes. 

A renters policy also covers your losses in case of theft, fire, smoke, wind damage, and vandalism. In addition to personal property coverage, a renters policy provides liability coverage as well as pays the medical bills in case your guest(s) suffer from an injury at your home due to any of the covered perils. 

It offers liability coverage for damage to the property as well as pays the medical bills if a guest gets injured in your house. Renters insurance in Kentucky also covers additional living expenses in case your house becomes uninhabitable due to an incident that is covered by the policy.

Standard renters insurance in Alabama doesn’t typically include coverage against earthquake and flood damages. They do cover tornado damage though. 

Most policies also have a total dollar limit for the amount they’ll pay in case of damage or loss, which may not cover the cost of highly valuable items, like antiques, high-end watches, and expensive jewelry. Most companies provide multiple options to increase your coverage at an additional price.    

In case you didn’t already know, there are two basic types of renters insurance in Alabama – broad renters insurance and comprehensive renters insurance. The broad insurance comes with a list of named perils that it offers coverage against, whereas the comprehensive one provides protection from all risks.

Tips on Saving on Renters Insurance in Alabama

The average cost of renters insurance in Alabama is $245 per year, which is $60 more than the national average. Many companies still offer the policy at affordable rates; we’ve listed some of the cheapest renters insurance in Alabama above. Most companies also offer several discounts, allowing their customers to reduce their cost for renters insurance. 

The most common types of discounts include bundle policy discounts, safety discounts, member discounts, and discounts for seniors. Always a good idea to look for easily attainable discount options while searching for the right renters insurance policy.

Another way to lower your premium is to opt for a higher deductible. Some companies offer lower rates to people with good credit scores. If you have a reliable credit history, ask your insurance company whether they offer a discount for a good credit score.

If all of this is too much hassle for you, simply choose a company from our list of the best renters insurance in Alabama to get good coverage at the best rates.

To Sum It Up

The article provides all the essential information you may need to choose the best renters insurance in Alabama, along with a list of some of the best options available. Use this brief guide to choose the best renters policy for yourself or go with any of the companies listed above; all of them offer good coverage at great prices.

FAQs

Is the landlord's name included on renters insurance responsibilities in Alabama?

In Alabama, liability coverage offers protection to the landlord, along with the tenant.

How much is renters insurance in Alabama?

The average cost of renters insurance in Alabama is $245 per year or around $20.5 per month.

What are the renter insurance laws in Alabama?

There’s no law regarding renters insurance in Alabama, which means tenants are not legally bound to have a renters policy.

Is flood damage and wind damage covered under the renters insurance in Alabama?

Most insurance providers in Alabama provide coverage against wind damage in the standard renters policy. Coverage against flood damage is generally offered as an additional coverage option.

Is renters insurance available for mobile homes in Alabama?

A renters policy covers tenants in almost all types of residential properties, including mobile homes. Still, it is recommended to always confirm it with the insurance company you’re planning to buy the policy from.

Does Alabama renters insurance cover liability outside the house?

Yes, Alabama renters insurance covers liability both inside and outside the house.