Thanks for visiting our Montgomery, AL Renters Insurance Guide. Do you really know as much as you think you do about Montgomery renters insurance? You may be surprised! Effective Coverage is on a mission to educate renters on their insurance needs and making sure they have the best Alabama Renters Insurance that meets their needs. Combined with our values of integrity, and expertise, which you can read on our core values page, we’re able to give you the most affordable price.
Our first question that tests your renters insurance IQ: What percentage of renters have renters insurance? You may be surprised that it’s only forty-four percent! Effective Coverage aims to increase that number to 40 percent by the end of the year. We call this campaign the Effective Coverage 2017 Renters Insurance Challenge, and we want the help of any insurance professionals to increase the number of insured renters in Americans covered by the provider of their choice.
Effective Coverage would love to be your Montgomery, AL renters insurance provider of choice, but our bigger concern is to get as many renters covered as possible. Since fifty-six percent of Americans don’t have renters insurance, it’s not about competing with other companies. It’s about working together as an industry to make sure that American’s renters are covered with the best possible policies.
Montgomery, AL Renters Insurance
What Makes A Good Montgomery, AL Renters Insurance Policy?
First of all, it’s crucial to have renters insurance replacement cost on your policy. That makes sure that you can afford to replace personal property with a new item of like kind and quality. If you only have actual cash value renters insurance , you’d only get the depreciated cost of the item. While we suppose the odds of being able to replace the item with just the actual cash value is non-zero, they’re certainly very close to zero.
You want to make sure that you have enough personal property coverage in the event of a total loss such as an apartment fire. If you have too little coverage, even with replacement cost you’ll still have trouble replacing everything. There is a formula to calculate personal property coverage. It boils down to adding up all the big things you can see during a walk-through of your home, doubling that number to account for the things most people aren’t going to inventory or remember to add into the total, and then round up to the next $5,000 mark. So if you have $6,000 of property that you can easily see, double that to reach $12,000, and then round up to $15,000. That’s really a lower limit for the vast majority of people anyway. Nearly no one is fully covered with less than $15,000 of personal property coverage.
Next, make sure you have enough liability coverage. Think about your future earnings, your assets, your retirement savings, whatever you have in the bank, and anything else that someone might be able to take if they sued you. Round up to the next even hundred thousand dollar mark.
If you have $50,000 in your 401(k), $5,000 in cash, and a $10,000 car, you’d want at least $100,000 of liability. Any less than that and you’re putting yourself at serious risk. Often, though, the difference in price of Montgomery renters insurance is very small between, say, $100,000 of liability and $500,000 of liability. That much coverage might cost you all of ten dollars a year more. That’s less than a dollar a month to improve your coverage significantly. Remember that no one ever sues anyone for “just” $100,000. Several hundred thousand is the minimum to be worthwhile, in most situations. You want liability coverage greater than your assets, and large enough to be worth settling most claims rather than taking them to trial.
Speaking of which, make sure that your Montgomery, AL renters insurance policy provides defense outside the policy limits. What does that mean? In a nutshell, defense costs are borne by the insurer without eating into the liability limits. Defense inside the policy limits is rare, but those policies do exist, and you need to be careful not to end up with one.
That’s why you work with a renters insurance expert from Effective Coverage to help get the right coverage for your personal situation. Many renters have more assets to protect than they think they do, so it’s crucial that you have the coverage you need to protect your assets, even the ones that aren’t conventionally considered.
How Much Does Renters Insurance Cost In Montgomery, AL?
On average, a basic renters insurance policy in Montgomery, AL will cost between fifteen and twenty dollars a month. They start at just under $180 a year, which is quite literally pocket change. If you took the change from your pocket on a daily basis and saved it in a large jar, you’d have the $180 or so that you need in order to pay the next year’s premium.
Montgomery renters insurance is quite affordable to the vast majority of people.
Why Is Renters Insurance Required By Landlords In Montgomery?
There are a few reasons that landlords require renters insurance in Montgomery. The first is to protect their investment. They’re giving you access to a significant asset with no real way to keep tabs on how you’re keeping track of it. If an accident such as a fire causes damage to the property, are you likely to be able to pay for it out of pocket? Can you rebuild the apartment building on your own dime? Most renters would have difficulty with that.
Another reason is because it makes sure that there’s an understanding that the landlord is not responsible for your personal property. If you’re required to insure your own property, it immediately becomes crystal clear that you and only you are responsible for your property.
A third reason that landlords require renters insurance in Alabama is that when you have many people living in close proximity, an accident or fire that someone is responsible for can quickly turn into a significant loss for many people. If the person responsible for the loss has liability insurance, the people who are victims of the loss can be made whole by the party who has liability.
You may or may not believe that you need renters insurance in Montgomery, but if your landlord requires it and you signed a lease admitting that, then you need to have it.
Whether you want coverage because you’re a responsible adult or because you’re required by your lease to have it, the renters insurance experts at Effective Coverage are happy to help. Call or click today for the best renters insurance in Montgomery at the best price.
Renting In Montgomery, AL
Montgomery, AL is the county seat of Montgomery County, and is the capital of Alabama. Its population is a little over 200,000 people, making it the 2nd largest city in Alabama, just behind Birmingham. Its average home value is $148, 154 and its average rent per month is $888.
Montgomery was founded in 1819, and become the state’s capital in 1846. It was the first capital of the Confederate States of America until the capital was moved to Richmond, Virginia later in the year. The area also experienced several major events during the 20th century which include the African-American Civil Rights Movement, the Montgomery Bus Boycott, and the Selma to Montgomery marches.
Montgomery, Alabama has an impressive military presence with its Maxwell Air Force Base. It also has many reputable education institutions, including Troy University, Auburn University, Alabama State University, and Faulkner College.
Thunderstorms often occur in the city which bring much of its rainfall. The storms occur more often during the summer, but occasionally continue throughout the year. Large hail and strong winds occur during the spring, with a chance of tornadoes happening. Tropical occurrences are due to the Gulf Coast which produce deadly hurricanes but lose their momentum as they reach inland.
As one of the most vulnerable states to hurricane and tornadoes, you’re going to need to purchase your affordable renters insurance policy to cover your personal property. The last thing you want to happen is to be in financial ruin because catastrophe struck when you least expected it. Purchase a renters insurance policy with Effective Coverage from one of our insurance experts, or use our self-service portal and obtain a competitive price within 5 minutes.