Effective Coverage Helps Protect Renters Across Alabama
Alabama renters insurance protects residents across the state. With budgets spread thin and new weather challenges, renters insurance in Alabama is more important than ever. You can protect your family as well as your future for just a few dollars a day. How well do you understand your policy? The insurance experts at Effective Coverage have the answers you need.
While home ownership is common in outlying areas, the majority of Alabama residents in cities like Huntsville and Birmingham are renters. From the Gulf Coast all the way to Athens, Effective Coverage is dedicated to helping you protect what’s most important to you. How much do you know about renters insurance? As many as fifty-six percent of renters in Alabama don’t have any coverage at all. Your unique geographic location means that both hurricanes and tornadoes pose a threat. Would you be covered? Find out in the Effective Coverage 2020 Alabama Renters Insurance Guide, including bonus content on renting in Alabama.
Although there are 382,000 people who rent apartments in Alabama, the total number of renters is actually much higher than that. The NMHC only factors in apartment residents, but renting single-family homes and alternative rental situations are both common in Alabama, and few of these people have renters insurance.
Effective Coverage offers complete coverage at a convenient price. While the average cost of Alabama renters insurance is only $19 per month, Effective Coverage policies are often much less than that. Because your policies are backed by the security of our highly-experienced underwriters, you can rest assured that your family and your lifestyle are protected.
If you’ve ever wondered if you need renters insurance in Alabama, the answer is yes! If you’re a renter, your landlord’s policy doesn’t protect you. As a matter of fact, the number of uninsured landlords in Alabama is higher than the national average, so they might not even have insurance to begin with. Even if they do, it only covers the building, it does not cover your possessions within. Whether you’re in Huntsville, Mobile, or all the way up at the northern border, Effective Coverage has Alabama renters insurance tailored specifically to your needs.
2020 Alabama Renters Insurance Guide Table Of Contents
- Who Is Effective Coverage?
- Why Do I Need Alabama Renters Insurance?
- How Does Renters Insurance In Alabama Protect Me?
- Do I Get A Refund If I Don't File Claims?
- How Can I Get Renters Insurance In Alabama?
- Bonus: Renting In Alabama
Who Is Effective Coverage?
Effective Coverage is the only national provider of renters insurance, and our agents are experts in this specific area of insurance. Unlike other national insurance companies, Effective Coverage does not spend your premium dollars on advertising, but rather on providing the coverage you deserve. Whether you prefer to buy renters insurance online or speak with an insurance expert over the phone, we empower our clients to get educated, get covered and get on with their lives.
Why Do I Need Alabama Renters Insurance?
Renters insurance in Alabama covers your personal property against many different perils, all of which are listed on your policy. Effective Coverage policies offer replacement cost coverage, so you can buy new property to replace anything lost to a fire or theft.
In Fact, the vast majority of landlords require that you have insurance. More often than not it’s written into your lease, as are the penalties for not having it. Although you likely had to provide proof of renters insurance upon signing your lease, some leases give the landlord the right to evict you if you don’t maintain your insurance policy. There is usually a grace period to re-instate your coverage, so make sure to read your lease carefully and maintain compliance.
Renters in Alabama are more likely than renters in other states to be saving for a home while they’re renting. It is important to keep in mind that without renters insurance, you might be forced to use your savings to pay for damages to the building that could be deemed your fault (should you be at fault for fire or water damage to the property). Or, if your neighbor were to start a fire and the smoke damages your furniture and clothing, you’d also be on the hook to replace those costly belongings. However if your neighbor has renters insurance, it might pay you the actual cash value for your damaged property. If you have Alabama renters insurance, you can file a claim on your own policy in order to be reimbursed the cash value of your lost or damaged property.
Since there are only 1,424 hotels in the entire state, Alabama renters are less likely to be able to find a suitable hotel on short notice should their home be damaged beyond reasonable use. With a renters insurance policy from Effective Coverage, the policy would actually pay for the hotel stay should your home be damaged beyond use in a fire, flood, or other catastrophe.
How Does Renters Insurance In Alabama Protect Me?
But did you know that your policy actually covers so much more than just the cash value of your damaged property and hotel stay?
In Alabama, contributory negligence is an affirmative defense to a liability claim against you. What does that mean, and why is it important to Alabama renters insurance liability coverage?
Take this scenario: Madison rents an apartment. While moving in, she negligently sets a cardboard box full of paperback books on top of the electric stove. She stops for a moment, because she’s tired from moving. When she leans back against the stove to rest, she inadvertently turns the stove on.
The box of books on top of the stove eventually catches fire, but why did the stove turn on when she leaned against it? The landlord had replaced a broken control on the stove with a simple on/off switch because it was less expensive. The stove would not have turned on (and the fire would not have occurred) but for the landlord’s contributory negligence in making repairs to the stove.
The good news is that in Alabama, that contributory negligence may completely bar the landlord from any recovery against his tenant Madison. If you’re curious how this came to be, see Jackson v. Waller, 410 So.2d 98 (1982).
The bad news is that liability claims in Alabama are often fought tooth and nail because of this absolute bar to recovery. This can makes a simple renters insurance liability claim a long, drawn-out process in Alabama.
That’s part of the reason why Alabama renters insurance provides defense coverage. If a claim is made or a suit is filed against you, your insurance policy pays for your lawyer. They have a duty to defend you, because most people wouldn’t be able to afford the lawyer or wouldn’t be aware of the importance of responding.
Instead of leaving the insurance company on the hook for default judgements, a defense is mounted. This protects you as well as other policyholders from paying false or frivolous claims. The cost of the defense is separate from the limit of liability. If you have $100,000 of liability coverage and it costs $100,000 to defend against the case, there is still $100,000 of liability coverage remaining to pay for the claim.
In addition, ‘medical payments to others’ coverage is available for small injuries to guests. There’s even a small no-fault coverage for damage to the property of others. If your friend says “Here, hold my beer,” and you drop that beer all over his new couch, that ‘damage to property of others’ coverage could pay to clean it without making a liability claim for the $200 cleaning bill.
Do I Get A Refund If I Don't File Claims?
When you purchase Alabama renters insurance, you’re paying for the company to take on the risk of you having a claim during the policy period. Whether or not there is a loss, the company provided a service. So it is important to note that you do not get a refund if you don’t file claims. Since the company was ready, willing and able to pay or defend any covered losses that could have occurred, you are responsible for paying your monthly premium in exchange for this assurance.
While you may have heard of so-called “return of premium” policies, this is a concept limited to life insurance policies. One reason for this is that ROP is only actuarially sound on multi-year policies and since renters policies are generally issued for a twelve-month period, this concept doesn’t apply.
How Can I Get Renters Insurance In Alabama?
That’s easy. Effective Coverage has insurance experts standing by to help you understand what level of coverage you need and shop different providers for you. So rather than spend all day shopping for the best price, let Effective Coverage do the comparison for you. Just call
Bonus: Renting In Alabama
The median rent in Huntsville is $174 a month below the national median. That means the cost of living in Alabama is dramatically lower than in most of the rest of the country. Alabama also has favorable landlord-tenant laws to protect you as a renter.
But even with these protections, you are still responsible for damages to the property that are deemed ‘your fault’. Minor damage, such as to the carpet, can be covered by your security deposit. But larger damages caused by fire or frozen pipes due to your negligence are your responsibility. You can protect yourself from that risk with Alabama renters insurance from Effective Coverage.
Most landlords in Alabama will run a credit check and background check. This is more common in professionally managed communities, but small landlords will also sometimes do it. You should also be prepared with references from previous landlords and proof of income for every adult in the household.
Renting in Alabama is often a less formal process than in other parts of the country. Even with the information that landlords tend to want, you may find yourself being offered a verbal lease. You should request a written lease to avoid misunderstandings and to protect yourself if there is a disagreement. A written lease doesn’t necessarily have to be a detailed, formal document. In fact you’d be better off writing a few sentences by hand than you would be with a verbal agreement. The important part is that it details who’s renting what premises under what terms, and is signed by the tenant and the landlord.
It’s easier to rent in Alabama than in many other states. Effective Coverage can save you money on your renters insurance policy, and even help you get discounts on car insurance. Just call (800)892-4308 or click to get covered - whether you need Alabama renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.