The Cheapest and Best Renters Insurance in Birmingham
The Companies With the Cheapest Renters Insurance in Birmingham
One of the most important factors in choosing the best renters insurance in Birmingham is the cost, especially since most companies offer the same coverages. If you’re looking for cheap renters insurance, the following are your best options in Birmingham, on average:
- USAA: $121 per year (only available to military families)
- State Farm: $136 per year.
Renters with USAA policies receive the replacement cost for their belongings in the event of a loss. They also get flood and earthquake coverages. These advantages make USAA renters insurance more valuable.
MoneyGeek based these rates on policies with coverage limits of $20,000 for personal property, $100,000 for liability coverage and a $500 deductible. The table below allows you to see how adjusting these coverage limits can affect the cost of your renters insurance policy. If you live in another city in Alabama, consider comparing the cost of renters insurance in Alabama.
Average Annual Rates for Personal Property Insurance
Personal Property Coverage:
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What Are the Best Renters Insurance Companies in Birmingham?
According to MoneyGeek’s research, the following are the top-ranking renters insurance companies in Birmingham:
- Best Overall: USAA (only available to military families)
- Runner-up: State Farm
MoneyGeek ranked the best renters insurance based on affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. These insurers also provide unique coverages that are usually not offered by other insurers.
USAA is the top-ranking company for renters insurance in Birmingham, receiving a perfect score for all categories. However, USAA is only available to current and former military members.
Active and former members of the military can receive additional discounts on their renters insurance policies, making it one of the cheapest insurers. Furthermore, members who are deployed to countries outside of the U.S. can still enjoy coverage from their USAA insurance policy. The same benefit also applies to those who have decided to move outside of the United States.Read MoneyGeek's USAA renters Insurance Review
State Farm is the second best company for renters insurance in Birmingham, with its above-average scores across all factors. It offers earthquake coverage as an add-on.
State Farm is one of the cheapest options in the country. Renters can purchase identity restoration coverage for only $25 per year. This coverage offers protection against the costs of identity fraud so that you are extra protected in case your data becomes compromised. It is beneficial for renters who want to be safe in case their identity is stolen.Read MoneyGeek's State Farm renters Insurance Review
The Average Cost of Renters Insurance in Birmingham for 2023
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The average cost of renters insurance in Birmingham is $203 per year. It is around $44 more expensive than the average cost of renters insurance in the United States. The national average is $159 per year.
What Factors Impact Renters Insurance Costs in Birmingham?
Many factors affect the cost of renters insurance in Birmingham. The following factors have the most significant influence on the price of your policy:
- Personal property coverage amount. This is the most important factor in determining the cost of your policy. The coverage amount depends on the value of your belongings and to what extent you want to protect them.
- Location within a city. Crime rates may affect the cost of your policy, but they only have a minor effect. A location with a high crime rate may result in slightly more expensive policies.
- Deductible. The deductible is the amount you’ll have to pay on your own in case of a covered loss. Your insurer will have to pay less if you pay more – and vice versa. The larger the deductible, the cheaper the policy. The smaller the deductible, the more you’ll pay for your insurance.
- Actual Cash Value (ACV) vs. Replacement Cost Value (RCV). An actual cash value (ACV) policy is cheaper because the insurer only reimburses you for the current value of your belongings, taking into consideration depreciation costs. A replacement cost value (RCV) costs more since you will be reimbursed with the value of an item of the same kind and quality.
- Liability coverage amount. A standard policy has a liability coverage limit of $100,000, but you can choose to increase it. Getting additional coverage will not increase your premiums substantially.
Calculate How Much Renters Insurance You Need
Does My Birmingham Neighborhood Impact Cost of Renters Insurance?
The location of your neighborhood has little impact on the cost of renters insurance in Birmingham. According to our study, the area of your neighborhood only changes the cost of your insurance by a few dollars per month.
Understanding Renters Insurance in Birmingham
Renters insurance in Birmingham is not mandatory. However, landlords may require renters to purchase a policy.
Although it’s not a requirement, MoneyGeek highly recommends purchasing renters insurance since it protects your personal property from loss or damage. It also doesn’t cost much to get a renters insurance policy.
It could also be a good investment so you can be prepared for accidents and risks that may happen in your rental property. If you’re considering buying a policy, it’s best to take note of what it covers and what it doesn’t cover by reading your policy thoroughly.
What Does Renters Insurance Cover in Birmingham?
When looking for renters insurance in Birmingham, renters need to choose a policy that includes coverages that meet their needs. This kind of insurance protects renters from theft and other events by reimbursing their personal property in case of a loss.
Residents in Birmingham apartments and homes can depend on their renters insurance to protect them from common dangers, like fires and water damage. The following coverages are included in a standard renters insurance policy:
- Personal property coverage: The value of your personal property determines the limit of your personal property coverage as it protects your belongings in the event that they are damaged or stolen.
- Additional living expenses: The expenses you will incur while your rental property is uninhabitable due to damage are covered by your additional living expenses coverage. An example of these expenses is the cost of your temporary housing or accommodations.
- Liability insurance: Liability insurance covers legal fees in case an accident happens or a person gets injured in your rental property.
- Medical payments coverage: Medical payments coverage covers the medical expenses that you may face when a person is injured in your rental property.
What Is Not Covered by Renters Insurance in Birmingham?
Because policies differ from one company to another, it’s important to read your policy carefully to know its coverages and limitations. For instance, renters insurance covers your personal property but does not include your roommate’s items.
The structure of your home is not covered by renters insurance either. In order to protect the structure of your home, your landlord needs coverage.
Renters insurance does not cover water damage due to flood. Incremental insurance from the National Flood Insurance Program (NFIP) is available for renters who want to safeguard their property from water damage caused by flooding.
Earthquake damage and vehicle damage are also not covered by renters insurance. Valuable objects are also not covered since they could exceed the coverage limit of a standard policy.
Frequently Asked Questions About Renters Insurance in Birmingham
MoneyGeek answered frequently asked questions regarding renters insurance to help you choose the best policy for your needs:
Renters Insurance in Birmingham Analysis: Methodology
MoneyGeek analyzed hundreds of renters insurance quotes in Birmingham to help you find cheap renters insurance. The best renters insurance rankings were determined using data from J.D. Power, AM Best and our affordability metrics that are derived from a comprehensive analysis of quotes provided by Quadrant.
About Mark Fitzpatrick