Alabama Landlord Insurance

Find the Best Landlord Insurance Rates & Companies in Alabama 

Maybe you own a condo in Birmingham that you lease to local executives. Or perhaps you own a house in Tuscaloosa that you rent out to students attending the University of Alabama. Regardless, if you own a property that is occupied by tenants, you can benefit from having landlord insurance.

An independent insurance agent in Alabama can help you get set up with all the necessary landlord insurance. They'll make sure you walk away with the appropriate amount of coverage. First, though, here's a breakdown of Alabama landlord insurance requirements and more. 

Best Landlord Insurance Companies in Alabama

You can find landlord insurance from many different carriers in Alabama, but when you're looking for top-quality coverage, it's helpful to know where to start. We're hoping to save you time and effort by including some of our recommendations for the best landlord insurance companies in Alabama. Start by checking into these outstanding carriers. 

1. Progressive: This insurance company sells landlord insurance and many other types of personal and business insurance. Progressive has excellent financial strength, many discount options, and offers 24/7/365 customer service.
2. Safeco Insurance: This insurance company sells landlord insurance and many other forms of personal insurance. Safeco is highly rated by AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting.
3. REinsure Pro: This insurance company sells landlord insurance and many other forms of property insurance. REInsure Pro is highly rated by the BBB and offers a fast claims response time.

An Alabama independent insurance agent can help you shop and compare landlord insurance quotes and coverage from these carriers and others in your area. 

What Is Landlord Insurance?

Landlord insurance is very similar to homeowners insurance and other types of property insurance in that you pay a premium to the insurance company in exchange for coverage on the property you rent out. If you ever have to file a landlord insurance claim for covered hazards like fires, break-ins, or tenant damage, your insurance carrier can offer you reimbursement for repairs or replacements to your property if the claim is approved.

How Is Landlord Insurance Different from Home Insurance?

Though landlord insurance is similar to homeowners insurance, it has key differences. Since renters are more likely to damage property than homeowners, landlord insurance must consider this increased risk. 

Landlords also face different risks than those who own their homes and don't rent out to third parties. Further, landlord insurance must include certain aspects of business insurance, since landlords earn a profit from their ventures and these considerations aren't accounted for in a home insurance policy.

Is Landlord Insurance Required in Alabama?

Technically, landlord insurance isn't required by law in Alabama. However, it's always wise to consider getting a policy if you rent your property, such as your condo, home, or apartment. Getting a separate policy can help protect you against potentially hefty losses that other insurance policies won't cover. For example, your home insurance policy typically won't cover damage caused by long-term tenants who rent from you. 

Also, if you ever need to temporarily suspend your business operations and rely on your renters' payments as a primary source of income, it's critical to consider getting landlord insurance.

What Landlord Insurance in Alabama Can Cover

Alabama allows customers to build their landlord insurance policies in a way that makes the most sense for them. Many insurance companies offer the following coverage options to choose from:

• Liability insurance: This coverage protects you, the landlord, from lawsuit costs by paying your legal expenses and court costs if a tenant or guest sues you for damages or injuries. Covered claims include third-party accounts of bodily injury or personal property damage caused by you or your rental property.
• Dwelling coverage: This can help pay for repairs to your rental property's dwelling if it gets damaged by fire, smoke, windstorms, hail, falling objects, or your tenants. Coverage typically extends to attached structures as well, such as garages, decks, and porches. 
• Loss of income coverage: This optional coverage can help compensate you for lost income in the event a rental property becomes uninhabitable due to a covered loss, such as a storm or apartment fire. Your loss of income coverage, or rental reimbursement, can prevent you from losing the income you would have earned if you collected rent during that time.
• Other structures coverage: This can cover detached structures against the same perils as dwelling coverage. However, it applies to sheds, fences, and other structures that aren't attached to the main rental property building.
• Premises medical protection coverage: This can pay for medical treatment costs if one of your guests gets injured in a covered event while staying at your rental property. Accidents and other incidents are covered.
• Optional coverage: As a landlord, you can buy additional coverage, such as rent guarantee insurance, natural disaster insurance, vandalism coverage, burglary coverage, rental property under construction coverage, building code coverage, employer liability insurance, and landlord contents insurance, which covers your personal property like furnishings or carpet in the rental property against tenant damage, theft, and more.

Your Alabama independent insurance agent can help you create a landlord insurance policy that includes each type of protection you need.

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What Landlord Insurance in Alabama Will Not Cover

Of course, landlord insurance isn't designed to cover everything. Some common coverage exclusions under landlord insurance are:

• Rental property wear and tear
• Routine maintenance costs
• Flood damage
• Your personal property stored at the premises
• Earthquake damage
• Water or sewer backups

Often, you can purchase additional coverage endorsements that address the exclusions listed above. It's helpful to be aware that many landlord insurance policies don't automatically include this coverage, though.

Average Cost of Landlord Insurance in Alabama

The average cost of landlord insurance in Alabama is $1,761 per year. Keep in mind, however, that many different factors can influence the cost of landlord insurance, including:

• How many rental units you own: The more rental properties you own, the more expensive you can typically expect your rates to be. 
• Security measures on the property: If your rental property has a gated entry, anti-burglary systems, and smoke alarms, you'll often experience lower coverage rates than landlords without these protective features on their property.
• The age and condition of the property: Older buildings with outdated electrical systems often experience higher coverage rates than new units with up-to-code heating and energy systems.
• Your location: Rental properties in high-crime areas often experience higher coverage rates than neighborhoods that experience few property crimes.
• The size and value of the structure: Larger, more expensive buildings often experience higher coverage rates than smaller, less valuable homes or complexes.
• Risk factors on the property: If you allow smoking in your units or your complex has a fitness center or swimming pool, you might experience higher landlord insurance rates.

An Alabama independent insurance agent can help you get set up with affordable landlord insurance in your town.

Popular Questions about Alabama Landlord Insurance