Best and Cheapest Renters Insurance in Alabama (2024)

Alabama's best renters insurance company is State Farm, with a MoneyGeek score of 96 out of 100 and an average annual premium of $145. State Farm is also the cheapest option, on average.

When considering renters insurance, the best provider combines customer satisfaction with competitive rates.

State Farm is the leading provider of renters insurance in Alabama, with a MoneyGeek score of 96 out of 100 and an impressively low annual premium of $145. The next-best providers in the lineup for Alabama renters include Auto-Owners Insurance and Nationwide.

• State Farm: MoneyGeek score of 96 out of 100 ($145 per year)
• Auto-Owners Insurance: MoneyGeek score of 92 out of 100 ($157 per year)

State Farm stands out in Alabama as a provider that effectively balances cost and quality. On average, it is also the cheapest provider of those we compared.

State Farm offers the cheapest renters insurance in Alabama, with an annual premium of just $145 for $20K in personal property coverage with a $1,000 deductible. The top two cheapest providers in Alabama for this level of coverage are:

• State Farm: $145 per year
• Auto-Owners Insurance: $157 per year

Personal property coverage helps safeguard belongings like furniture, electronics and clothing against covered risks. Less expensive renters insurance plans often include lower limits on personal property coverage. While this can keep your monthly costs down, opting for higher coverage limits gives you more financial protection for your possessions.

For policies with $20,000 in personal property coverage and a $2,000 deductible, the top two cheapest providers in Alabama are:

• State Farm: $136 per year
• Auto-Owners: $149 per year

A deductible is the money you pay before your insurance company helps cover a claim. Choosing a higher deductible typically lowers your insurance premium because you're assuming more financial responsibility. Review the table below to see how changing your deductible can impact rates.

In Alabama, the best renters insurance company for service quality is Travelers, with a MoneyGeek score of 95 and an average premium of $359 per year. If you're seeking excellent customer service, the following providers are the top two best in Alabama:

• Travelers: MoneyGeek score of 95 out of 100 ($359 per year)
• Nationwide: MoneyGeek score of 95 out of 100 ($214 per year)

Great customer service can make a substantial difference to renters, especially during stressful times like making a claim. For instance, if you suddenly experience property loss or damage, a swift and empathetic response from your insurer can provide much-needed peace of mind.

State Farm is the best renters insurance company for renters who need extra personal property coverage in Alabama, with an annual premium cost of $323. For $100,000 in personal property coverage, the following providers are the best in Alabama:

• State Farm: MoneyGeek score of 96 out of 100 ($323 per year)
• Auto-Owners Insurance: MoneyGeek score of 89 out of 100 ($422 per year)

Renters with more personal belongings often require higher personal property coverage, which is designed to protect items like furniture, electronics, and clothing from theft, damage, or loss. Even if it costs more each month, it's important to get the coverage amount you need to protect your assets — this ensures that if an unfortunate event occurs, you'll have the necessary financial protection and support to recover your losses.

USAA is the premier renters insurance company for homeowners with military backgrounds. State Farm is the second-best company for veterans and military families.

• USAA: MoneyGeek score of 100 out of 100 ($168 per year)
• State Farm: MoneyGeek score of 96 out of 100 ($145 per year)

USAA provides various products specifically designed to meet the needs of military members, including discounts and coverages that align with the military lifestyle.

Nationwide is the best renters insurance company for those with poor credit in Alabama, with an annual premium of $357. The following providers are the top two best providers in Alabama for those with poor credit.

• Nationwide: MoneyGeek score of 96 out of 100 ($357 per year)
• State Farm: MoneyGeek score of 95 out of 100 ($319 per year)

Rates for those with poor credit are often higher, as they pose a greater risk to providers. Providers view them as higher-risk due to the increased likelihood of filing claims. Those with poor credit can take steps to improve their credit to lower rates and take advantage of discounts where possible.

The average cost of renters insurance in Alabama is $219 per year or $11 per month. This is cheaper than the national average of $146 per year. These rates are for a policy with $20K in personal property coverage, $100K in liability coverage and a $1,000 deductible.

Be aware that the cost of renters insurance in Alabama can vary significantly based on the amount of personal property coverage you choose. Use the tool below to get an estimate tailored to your needs.

The average cost for renters insurance varies by state and city. For example, in Birmingham, Alabama, the average annual premium is $236, while in Mobile, it is $397.

These rates are based on a renters insurance policy with $20K personal property limits, $100K liability limits, a $1,000 deductible, and a good credit score. See the average cost in your city using the table below.

Multiple factors impact the cost of renters insurance in Alabama, including location, coverage amount, and deductible. Understanding these factors is important as it helps renters make informed decisions and potentially save on their premiums. Below are some key factors that affect renters insurance costs:

• Location: Urban areas typically have higher premiums than rural areas due to increased risk factors.
• Coverage Amount: Higher coverage limits result in higher premiums because more protection is provided.
• Deductible: Lower deductibles lead to higher premiums since the insurer takes on more risk.
• Credit Score: Poor credit can result in higher premiums as insurers view it as a higher risk.
• Claims History: A history of frequent claims can increase your premiums as it indicates higher risk to the insurer.

Determining your personal property coverage involves creating a personal inventory of all your belongings at home. A personal inventory is a detailed list of items you own, including their descriptions and values. Follow these steps to create your inventory and ensure accurate coverage:

1. List Items: Write down all items in each room, including furniture, electronics, and personal belongings.
2. Take Photos: Photograph each item to have visual proof of its condition and existence.
3. Note Serial Numbers: Record serial numbers for electronics and other valuable items to help with identification.
4. Store Receipts: Keep receipts or proof of purchase for high-value items to verify their worth.
5. Update Regularly: Review and update your inventory annually or after major purchases to keep it current.

Renters insurance primarily protects your personal belongings from damage, but it also extends to other areas such as liability and additional living expenses. Here's what a typical policy may cover:

• Personal Property Coverage: Safeguards your possessions against covered perils like theft to help you replace them.
• Personal Liability Coverage: Protects you from legal responsibility for injuries or damage to others, such as if a guest is injured in your rental unit.
• Loss of Use Coverage: For additional living expenses if your rental is uninhabitable due to a fire, for example, loss of use coverage can cover temporary housing costs.

Renters insurance typically applies to specific events, like theft, vandalism or specific natural disasters. Here's what most policies cover:

• Fire or lightning
• Windstorm or hail
• Explosions
• Riots
• Damage caused by aircraft
• Damage caused by vehicles
• Smoke damage
• Vandalism
• Theft
• Volcanic eruption
• Falling objects
• Weight of ice, snow or sleet
• Water-related damage from home utilities
• Electrical surge damage

Although renters insurance provides a safety net for your personal property and liability, it does not universally cover all losses. For instance, damage from floods or earthquakes typically falls outside standard policies. Here's what else is usually not included:

• Natural Disasters: Standard policies often exclude events like floods and earthquakes.
• High-Value Items: Expensive jewelry or electronics may exceed policy limits.
• Business Equipment: Items used for business purposes may require additional coverage.
• Roommate Property: Your policy does not cover your roommate's belongings.
• Pest Damage: Infestations and damage from pests are generally not covered.
• Car Theft: Personal vehicles are covered under auto insurance, not renters insurance.

Understanding these exclusions can help you seek additional coverage if necessary, ensuring you're protected against a wider range of potential risks.

Finding the best renters insurance provider for you can be easy. We've answered some common questions to help you make an informed decision.