Best and Cheapest Renters Insurance in Birmingham, AL (2024)

The best and cheapest renters insurance company in Birmingham, Alabama is State Farm, with a MoneyGeek score of 96 and an annual premium of $166. Depending on your needs, other providers may be best. For example, Travelers excels in service quality with an annual premium of $328.

MoneyGeek also looked into the best and cheapest renters insurance in Alabama for those who live elsewhere in the state.

The best renters insurance in Birmingham, Alabama is State Farm with a MoneyGeek score of 96 out of 100 and an annual premium of $166. The following providers are the top two best renters insurance providers in Birmingham for a policy with $20,000 in personal property coverage, $100,000 in personal liability and a $1,000 deductible.

• State Farm: MoneyGeek score of 96 out of 100 ($166 per year)
• Nationwide: MoneyGeek score of 89 out of 100 ($199 per year)

The best provider in the state balances both cost and affordability. State Farm has perfectly balanced customer satisfaction and affordability with an affordability score of 55 out of 55.

State Farm offers the cheapest renters insurance in Birmingham, Alabama, with an annual premium of $166 for $20,000 in personal property coverage. The two cheapest providers are:

• State Farm: $166 per year
  
• COUNTRY Financial: $175 per year
  

We rated the cheapest renters insurance in Birmingham with minimal consideration for customer service. Personal property coverage helps protect your belongings in case of theft, damage, or other covered events.

Cheap renters insurance policies often have low personal property coverage limits. Higher personal property coverage limits can lead to higher monthly costs but offer better protection if you have many personal belongings.

In Birmingham, Alabama, COUNTRY Financial offers the cheapest renters insurance for a policy with $20,000 in personal property coverage and a $2,000 deductible, with an annual premium of $152. The two cheapest providers are:

• COUNTRY Financial: $152 per year
• State Farm: $155 per year

A higher deductible often leads to cheaper premiums, while a lower deductible means higher premiums. It's important to balance both to ensure you can afford your premium and still cover your deductible if you need to file a claim.

In Birmingham, Alabama, Travelers is the best renters insurance company for service quality with an annual premium of $328. The following providers are the top two best providers in Birmingham, Alabama, for a policy with $20,000 in personal property coverage, for those who value great customer service without considering affordability.

• Travelers: MoneyGeek score of 95 out of 100 ($328 per year)
• Nationwide: MoneyGeek score of 95 out of 100 ($199 per year)

MoneyGeek scores renters insurance providers based on J.D. Power surveys, which measure customer satisfaction in the context of renters insurance.

Great customer service is important for renters looking for insurance because it ensures a smooth and stress-free experience. For example, when you make a claim, a company with excellent customer service will handle your case efficiently and empathetically, making the process much easier for you.

State Farm offers the best renters insurance for high personal property coverage in Birmingham, Alabama, with an annual premium of $372 for a policy with $100,000 in personal property coverage. The two best providers are:

• State Farm: MoneyGeek score of 96 out of 100 ($372 per year)
• Auto-Owners: MoneyGeek score of 84 out of 100 ($529 per year)

High personal property coverage is designed for renters who have a substantial amount of personal belongings that need protection under their insurance policy. Renters who own a lot of belongings often require higher personal property coverage to safeguard their investments. This type of coverage insures items like furniture, electronics, and clothing against risks such as theft or damage.

While higher coverage levels typically come with higher costs, it's important to find a provider that delivers both competitive rates and exceptional service. Additionally, for high-value items like jewelry or art, standard policies may not suffice, and renters may need to consider additional coverage to fully protect these valuables.

USAA is ranked first in Birmingham with its annual premium of $108. USAA is exclusively for those with military backgrounds. The following providers are the top two best providers in Birmingham for veterans for a policy with $20,000 in personal property coverage.

• USAA: MoneyGeek score of 100 out of 100 ($108 per year)
• State Farm: MoneyGeek score of 96 out of 100 ($166 per year)

USAA offers a range of products tailored for those with a military background, providing discounts and coverages that suit the military lifestyle. While USAA is the cheapest in Birmingham for military members, it is worth considering for its specialized offerings.

The top renters insurance provider in Birmingham for people with poor credit is Nationwide, with an annual premium of $331 for a policy with $20,000 in personal property coverage. The following providers are the best in Birmingham for renters with poor credit for the same type of policy:

• Nationwide: MoneyGeek score of 96 out of 100 ($331 per year)
• State Farm: MoneyGeek score of 95 out of 100 ($364 per year)

In Birmingham, renters with poor credit often face higher insurance rates because they are considered higher-risk by providers. This risk perception is due to the potential for a greater likelihood of filing claims. Renters with poor credit can work on improving their credit scores and seek available discounts to lower their insurance rates.

The average cost of renters insurance in Birmingham, Alabama, is $236 annually, or $20 monthly. This is lower than the Alabama state average of $261 annually. But it's higher than the national average of $145 annually. These rates are based on a renters insurance policy with $20,000 personal property limits, $100,000 liability limits, and a $1,000 deductible.

Renters should remember that the average cost of renters insurance in Birmingham may vary greatly depending on the amount of personal property coverage you purchase. Personal property coverage protects your belongings in case of theft, fire or other covered events. Use the calculator below to see how prices change based on the value of your personal property.

The cost of renters insurance in Birmingham, Alabama, is influenced by multiple factors, including the location of the rental property and the amount of coverage desired. Understanding these variables is key to finding a policy that fits your budget and needs.

• Location: The area where you live can affect your premium due to crime rates and weather-related risks.
• Coverage Amount: Opting for higher coverage limits will increase your insurance costs.
• Deductible: Choosing a higher deductible can lower your monthly premium, but you'll pay more out of pocket in the event of a claim.
• Claims History: Renters with a history of claims may face higher premiums due to a higher perceived risk by insurance companies.
• Credit Score: Insurance companies may factor in your credit history when determining your premium, with better credit records often leading to lower costs.

Renters insurance primarily provides coverage for your personal belongings, but it also covers additional areas such as liability and living expenses if your rental is rendered uninhabitable. Here’s what a typical policy includes:

• Personal Property Coverage: This covers the cost to repair or replace your belongings if they're damaged or stolen. For instance, a renter in Texas may receive compensation for a stolen laptop.
• Personal Liability Coverage: This protects you financially if a guest is injured in your rental or you cause property damage. A Texas renter could use this coverage if a guest slips and falls in their apartment.
• Loss of Use Coverage: This helps with additional living expenses if your rental is unlivable due to a covered peril. A renter might rely on loss of use coverage to pay for a hotel stay after a fire.

Although renters insurance provides a financial safety net, it doesn't shield against every mishap. For instance, it typically excludes flood damage and your roommate's possessions.

• Natural Disasters: Standard renters insurance often does not cover damage from floods.
• Roommate's Belongings: Personal property coverage does not extend to items owned by a roommate unless they are listed on the policy.
• High-Value Items: Expensive jewelry or electronics may exceed the policy's limit and require additional coverage.
• Business Equipment: Property used for business purposes might not be covered under a standard renters insurance policy.
• Pest Damage: Infestations and damage from pests like bed bugs or rodents are usually not covered.
• Car Theft: While personal property stolen from your car may be covered, the theft of the car itself is not.

The best renters insurance provider for you in Birmingham ultimately depends on your needs. Below, we address some common questions to help you make an informed decision.