Landlord insurance in Alabama

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Alabama landlord insurance is a type of coverage designed for individuals who lease their properties to others for an extended time or who regularly rent out an investment property.

Landlord insurance (often called a DP3 policy) typically provides: 

  • Property coverage for physical damage to the home's structure.

  • Personal property coverage for the owner's belongings. 

  • Liability coverage that protects the owner if a tenant or a tenant’s guests gets hurt on the property. 

We’ve created a unique insurance product for homeowners and landlords in Alabama called House & Property insurance. This highly customizable coverage is easily tailored to your home’s risk whether it’s your primary residence or a rental property.

What's covered by Alabama landlord insurance?

Our House & Property insurance base policy is designed to protect Alabama rental properties by covering:

  • The dwelling

  • Attached structures, including garages, fences, or swimming pools.

  • Belongings you own that remain in the home.

  • Loss of rental income if a covered loss makes the home uninhabitable.

  • Limited coverage for cosmetic damage to floors.

If you live in the home, your House & Property policy can also include liability coverage, medical payments coverage, and a variety of other coverages. In some cases, you may also be eligible for additional living expenses coverage. 

What's not covered by Alabama landlord insurance?

House & Property insurance covers your home on an open- perils basis. This means the structure of your home is insured for damage from any event except for those listed as exclusions in your policy. 

The following perils are generally excluded from our landlord insurance in Alabama:

  • Earth movement

  • Governmental action

  • Illegal, dishonest, or intentional acts

  • Neglect

  • Nuclear hazard

  • Power failure

  • War or military acts

Most importantly, landlord insurance in Alabama usually doesn’t cover tenants’ belongings, regular maintenance costs, or items damaged by normal wear and tear. 

What types of homes can be covered by a House & Property policy in Alabama? 

House & Property coverage in Alabama is suitable for a variety of home types, including:

  • One- to four-family homes used for residential purposes (including condos and townhomes).

  • Modular homes built to comply with all applicable state and local building codes.

  • Owner-occupied properties and nonowner-occupied properties.

Mobile homes, manufactured homes, motor homes, houseboats, house trailers, or trailer homes are not eligible for this type of coverage.

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, landlord insurance may cost more on average 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? 

Landlord insurance premiums in Alabama are based on the type of rental property you have and the property's unique risk factors, such as:  

  • The size and location of your property.

  • The age and construction of your building.

  • The weather and crime risks in your city.

  • The type of building and/or number of rental units (e.g., large apartment complex vs. a duplex, four-family, etc.).

  • The coverage amounts and deductibles you choose.

In states like Alabama, where tropical storms and hurricanes happen, your roof's condition can also seriously impact your landlord insurance costs. Properties with older roofs tend to have higher landlord insurance premiums, as will those with older siding, pipes, and HVAC systems.

You may also find increased landlord insurance premiums if you have one or more attractive nuisances on your property (e.g., a swimming pool, playground equipment, or a trampoline).

Tips for saving on your Alabama landlord insurance

If your property has fire sprinklers, burglar alarms, gated access, or other security systems, you can often save some money or qualify for a discount on your landlord insurance.

You may also be eligible for a discount if you:

  • Harden your home against wind damage.

  • Have no previous claims.

  • Choose a paperless policy.

Another way to save money on your landlord insurance is to increase your deductible. House & Property insurance policies have three types of deductibles: 

How can House & Property insurance help Alabama landlords? 

There are many reasons to protect your rental property in Alabama with House & Property insurance:

  • House & Property insurance provides financial protection against natural disasters and other types of unexpected property damage.

  • With added liability coverage, it can cover expenses and legal fees if a tenant or a visitor gets injured on your property.

  • It provides protection for the most common types of property damage, including fire and water damage, as well as numerous other potential perils. 

  • It can be customized to fit the unique characteristics of your property and how you use your home (e.g., long-term rental, short-term rental, owner-occupied, etc.)

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, be sure first to learn how to be a landlord to avoid many common pitfalls.

Alabama landlord insurance FAQ

Is landlord insurance required in Alabama? 

Landlord insurance is not required in Alabama, but as a rental property owner, it’s in your best interest to have it. 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?

You can require your tenants to purchase renters insurance in Alabama. In these cases, you must specify the 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:

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