Insurance: Birmingham, AL

14 Replies

Can you please share your insurance coverage and quote for a property in Birmingham, AL. I am in the process of acquiring a $83K property and the insurance quote I received was $1000 per year. This is my first property, and I am not sure what coverage should I take and what the usual Insurance premium should be ?

Thanks a lot.

Hey @Sagar S. as a landlord you are only responsible for insuring the property itself and from liability risks.  If you are purchasing with a loan you will need to buy a replacement cost policy. If you are a cash buyer you have more options however, I still recommend going with a replacement cost policy. Most carriers that specialize insuring rentals have a premade policy designed for insuring rentals with all the bells and whistles a landlord needs. You are going to want to make sure that you have these important coverages.

Dwelling coverage (replacement cost)

Loss of rents (minimum 1 years worth of gross rent, I prefer 18-24months) 

Premises Liability (minimum 300k, I always suggest 1mil)

Rates are very dependent on zip codes. However I would say the average SFH rates are typically $450-750

I would recommend you call my agent in Birmingham & tell him to write your policy identical to mine. It covers fire, liability, vandalism, malicious intent by tenants, etc. I think it's around $60/mo. I pay by the quarter instead of monthly. 

https://agency.nationwide.com/tyler-f-watts-in-birmingham-al

I have replacement coverage, 1 year in lost rents and $500K in liability on each of my houses in 35215. The average cost is $750 per year and my houses average $100,000. $1,000 sounds high, but that depends what they’re quoting for coverage.

@Sagar S. This is why I love BIggerPockets. I’m looking at purchasing my first rental property in Birmingham this year & have been trying to figure out what I should expect as far as local insurance prices

Rates have gone up about 65% in last 2 years. All Alabama are going up due to a bunch of claims due to weather like hail and tornadoes. 65 k house cost about 1000 per year with 

3.5 % deductible. Good luck. 

@Sagar S. and @Jordan Page Congrats to you both for the exciting year ahead!  I have a few clients in Alabama and depending on the coverage you have on your policy and the deductible you're willing to have, I would say the $1,000 does sound average. 

I've seen quotes both higher and lower than $1,000 a number of times.  Numerous variables to account for.

Please message me directly if you would like any further guidance.

Coming late to this one- but I have an excellent agent that might help others who see this thread. I can't post their email on here- but you can DM me if you can't find it. Their name is below. On average you an expect a $85,000 quote to be around $550/year from them. This is a higher deductible around $2500. As an investor, I personally think its a waste to get a low deductible- that's just giving your money away. I go with a number that just starts to get uncomfortable, if I have to pay it out-- but won't kill my returns. Anyhow, they are great- and yes I have had to file a theft claim and they were easy peasy. 

Bruce Young--- Ross Diversified Insurance Services

I am an insurance agent in Birmingham, AL and I write on average about 40 of these policies a month on ivestment properties.  They will almost always fall between $575 and $750 depending on the area and purchase price of the property. I always write them on replacement cost and always a minimum of $500k liability coverage.  @Jordan Page if ever I can answer any questions for you reach out to me.

Landlord Blanket Program for Rental Dwellings on Replacement Cost and $12 MILLION Liability limits available for most rentals about $700 per house per year. Monthly Payments. 

Find me at  AIACLUB.COM  

Originally posted by @Jason Cory :

I would recommend you call my agent in Birmingham & tell him to write your policy identical to mine. It covers fire, liability, vandalism, malicious intent by tenants, etc. I think it's around $60/mo. I pay by the quarter instead of monthly. 

https://agency.nationwide.com/tyler-f-watts-in-birmingham-al

Just contacted Tyler for a quote for a SFH we just purchased and are going to rehab and need some hazard insurance / liability insurance on. In case you want to give him a heads up.

Thanks for the referral Jason!

Cheers, Weeksy
Originally posted by @Jason Weeks :
Originally posted by @Jason Cory:

I would recommend you call my agent in Birmingham & tell him to write your policy identical to mine. It covers fire, liability, vandalism, malicious intent by tenants, etc. I think it's around $60/mo. I pay by the quarter instead of monthly. 

https://agency.nationwide.com/... contacted Tyler for a quote for a SFH we just purchased and are going to rehab and need some hazard insurance / liability insurance on. In case you want to give him a heads up.

Thanks for the referral Jason!

Cheers, Weeksy


Will do. Good luck on your rehab.