Alabama landlord insurance is for people who rent properties to others. This applies to both long-term rental properties, vacation homes, or investment properties.
When you get landlord insurance (sometimes called DP3 insurance), you typically get:
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Property coverage for physical damage to the home's structure.
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Personal property coverage for the owner's belongings.
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Liability coverage that protects the landlord if someone gets hurt on the property ,like a tenant or a tenant’s guest.
The carriers we work with offer a special insurance product for homeowners and landlords in Alabama: House & Property insurance. This policy provides the coverage listed above, but can also be further tailored for your home’s risk, whether you live in it or rent it out.
What's covered by Alabama landlord insurance?
The base policy of House & Property insurance covers:
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Your welling
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Structures attached to your dwelling, such as garages, fences, or swimming pools
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Belongings you own that remain in the home
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Loss of rental income if a covered loss makes the home uninhabitable
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A limited amount of cosmetic damage to floors
For owner-occupied homes, a House & Property policy can provide coverage like what you’d get in a homeowners policy. All it takes is an owner-occupied endorsement that takes just minutes to add.
What's not covered by Alabama landlord insurance?
A House & Property policy covers your home or rental property on an open-perils basis. This means your property damage is covered if it’s caused by any event that’s not explicitly excluded from coverage.
These perils are the exclusions you’ll likely find listed in your policy documents:
Remember, landlord insurance doesn’t cover tenants’ belongings. (That’s one reason it’s a good idea to require your tenants get renters insurance.) What’s more, you won’t have coverage for costs related to normal wear and tear or regular maintenance.
What types of homes can be covered by a House & Property policy in Alabama?
Alabama House & Property policies are available for the following types of homes:
What types of homes are not eligible? You can’t get a House & Property policy if you have a:
How much does landlord insurance cost in Alabama?
Landlord policies generally cost about 25% more than a standard homeowners policy. This is mainly because landlords face additional risks and may be more likely to file an insurance claim. In Alabama, the average landlord policy may cost more than in many other states because of the increased risk of hurricanes and other damaging storms.
What factors impact the cost of Alabama landlord insurance?
Your rental property’s individual risk factors can impact the cost of landlord insurance in Alabama. These factors include:
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The size and location of your property.
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The age and construction of your building.
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The weather and crime risks in your city.
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The type of building and/or number of rental units.
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The coverage amounts and deductibles you choose.
The condition of your roof also has an impact on your landlord insurance costs, especially in places like Alabama where the risk of wind damage from tropical storms and hurricanes is high. Any property with an older roof, siding, pipes, or HVAC system usually has higher insurance premiums than a newer or updated home.
An attractive nuisance on your property, like a swimming pool, playground equipment, or a trampoline, can also cause higher landlord insurance costs.
Tips for saving on your Alabama landlord insurance
Certain security measures not only make your tenants safer, but also, they can help you save on your landlord insurance. Properties with fire sprinklers, burglar alarms, gated access, or other security systems often have lower premiums or qualify for a discount.
You may also be eligible for a discount if you:
Another way to save money on your landlord insurance is to increase your deductible. House & Property insurance policies have three types of deductibles:
Increasing your deductible can lower your costs. Just remember that it also means you're responsible for more repairs if you ever file a claim.
How can House & Property insurance help Alabama landlords?
Why cover your rental property in Alabama with House & Property insurance? Here’s the biggest reasons:
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House & Property insurance provides financial protection against natural disasters and other types of unexpected property damage.
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When you add liability coverage, it can cover you if a tenant or a visitor gets injured on your property.
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It provides protection for the most common types of property damage, including fire and water damage, as well as numerous other potential perils.
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It can be customized for the unique characteristics of your property and how you use it
Finding the proper insurance is just one of the many responsibilities that a landlord has. Being a landlord can be a very positive experience for many people, but it requires a lot of know-how. If you're looking into renting out a property, avoid common problems by first learning how to be a landlord.
Alabama landlord insurance FAQ
Is landlord insurance required in Alabama?
It’s in your best interest to have landlord insurance even though it is not required in Alabama. What’s more, if you have a mortgage on your property your lender will require you to have proper insurance coverage.
Can a landlord require renters insurance in Alabama?
Landlords in Alabama can require their tenants to purchase renters insurance. It’s important to include your insurance requirements in the lease agreement.
How can you get an Alabama landlord insurance quote?
Getting an Alabama landlord insurance quote is as easy. You can:
