Renters insurance is a must-have for Florida residents, especially given the state's high risk of natural disasters like hurricanes and flooding. You can expect to pay between $15 and $30 per month for a basic policy.
In Florida, renters insurance typically covers damage to personal property, including belongings and personal items. This can include things like furniture, clothing, electronics, and even your favorite family heirlooms.
Damage to personal property can be a significant financial burden, especially if you're living in a small apartment or sharing a house with roommates. With renters insurance, you can rest assured that your belongings are protected.
Florida renters insurance policies often have a deductible, which is the amount you pay out of pocket before your insurance kicks in. This can range from $500 to $2,000, depending on your policy and provider.
On a similar theme: Florida Insurance Cancellation Moratorium
What Renters Insurance Covers
Renters insurance covers three main types of coverage: personal belongings, personal liability, and additional living expenses. This means you're protected in case of unexpected events that damage your belongings or cause you to temporarily relocate.
Personal belongings coverage can help pay for the replacement of your personal items if they're damaged or destroyed due to a covered incident, such as fire, theft, or water damage. This includes possessions like clothing, jewelry, appliances, and electronics.
A standard renters insurance policy typically covers damage from named perils, including fire, windstorm, smoke, vandalism, theft, and accidental discharge of water. It also provides liability protection, which covers accidental injury to another person on your property.
Here are some examples of covered perils and what they might include:
Keep in mind that certain events, such as earthquakes and sinkholes, may not be included in standard coverage.
Belongings
Renters insurance covers a wide range of personal belongings, including clothing, jewelry, appliances, furniture, housewares, electronics, collectibles, watercraft, trailers, and money.
You can even store your personal belongings in an off-site storage unit or in other locations, such as your car or a hotel room, and still be covered.
Renters insurance typically covers damage from covered perils, including fire and smoke, lightning, windstorm and hail, volcanic eruptions, falling objects, vandalism and theft, water damage, power surge, explosion, riot or civil commotion, and aircraft and/or vehicle damage.
The weight of ice, snow, or sleet can also cause damage to your belongings, and renters insurance will cover this type of damage.
Personal belongings can be covered in one of two ways: actual cash value or replacement cost coverage.
Actual cash value coverage takes into account the depreciation of your personal belongings at the moment of a claim, whereas replacement cost coverage covers the total amount needed to buy the same (or similar) item, without deducting depreciation.
Here are some examples of covered perils and the types of damage they can cause:
It's essential to keep a home inventory that details your items, their value, purchase information, location, and any other information that can help in a covered event.
Loss of Use
Loss of Use is a type of coverage that provides payment for temporary housing and living expenses if your rental unit becomes uninhabitable due to damage or other covered events.
If there's a fire in your rental unit and you need to find temporary housing, your renters insurance policy can help cover the cost of a hotel, food, and other living expenses.
Renters insurance will reimburse you if a covered loss prevents you from staying in your apartment, which can be a huge help in a stressful situation.
Loss of use may be either a percentage of your personal property coverage, or a flat rate, generally between $3,000 and $5,000, so be sure to check your policy to see what you're covered for.
Consider reading: How Much Personal Liability Coverage Do I Need
Florida Cover Flooding?
Florida is prone to cover flooding due to its low elevation and storm-prone location. This can be a major concern for renters in the state.
Flooding is not typically covered under standard renters insurance policies, so it's essential to check your policy specifics.
Hurricane Irma, for example, caused widespread flooding in Florida in 2017, resulting in billions of dollars in damages.
For more insights, see: Commercial Auto Insurance Quotes Florida
What's Not Covered
Renters insurance coverage in Florida has its limitations. It's typically limited to a specific list of covered losses, such as the ones listed above.
Renters insurance doesn't cover losses due to certain natural disasters, like floods or earthquakes, which may require additional insurance coverage. You may need to purchase separate policies to protect your property from these risks.
For more insights, see: Renters Insurance Coverage
Common Additional
When you think you've got everything covered with your standard renters insurance policy, you might be surprised to find out what's not included. Let's take a closer look at some common additional coverage options that can give you extra peace of mind.
Renters insurance policies often don't cover earthquakes and sinkholes, so if you live in an area prone to these natural disasters, you might want to consider adding this coverage to your policy.
Some common additional coverage options include identity theft protection, which can help you recover from the financial and emotional impact of identity theft.
Explore further: Travelers Renters Insurance Coverage
If you're concerned about your valuables, you might want to consider adding a rider to your policy to increase the coverage limits for high-value items like jewelry or musical equipment.
Renters insurance policies can be customized to fit your specific needs, so don't be afraid to ask about additional coverage options when you're shopping around for a policy.
Here are some common additional coverage options to consider:
- Identity theft protection
- Riders for high-value items
Keep in mind that these additional coverage options may come at an extra cost, so be sure to factor that into your budget when deciding whether or not to add them to your policy.
Not Covered
Renters insurance doesn't cover all types of natural disasters and perils, so you may need to purchase additional insurance coverage.
Renters insurance typically doesn't cover losses due to earthquakes, sinkholes, and other specific events that may not be included in the standard coverage.
Pest infestations, such as damage to your belongings from bed bugs, termites, carpenter ants, and other vermin, are generally not covered by renters insurance.
Some insurers may offer bed bug coverage as an add-on, depending on your location, but this is not standard coverage.
Renters insurance doesn't cover all types of natural disasters and perils, so it's essential to review your policy and consider additional coverage if necessary.
Discover more: Does Renters Insurance Cover Natural Disasters
Earthquakes and Floods
Earthquakes and floods can cause significant damage to your rental property. Renters insurance doesn't cover losses due to these events.
Some specific exclusions include floods, earthquakes, landslides, sinkholes, and other earth movements. If you live in a flood-prone area, you might want to consider getting private flood insurance or looking into FEMA's National Flood Insurance Program.
While renters insurance covers water damage from storms or interior leaks, it doesn't cover damage from flooding. Earthquake damage is also typically not covered, unless you opt for an add-on to your renters policy with some insurance companies like Nationwide, Erie, or State Farm.
Related reading: Renters Insurance Cover Flood Damage
Actual Cash Value
Opting for actual cash value can be a smart move to lower your renters insurance premiums. According to Friedlander, the price of replacement cost coverage is typically about 10% more than actual cash value coverage.
If you choose actual cash value, you'll get a payout based on the item's depreciated value, not its original price. This can be a more affordable option, especially for everyday items that lose value quickly.
For example, a 10-year-old laptop might be worth only a fraction of its original price, so actual cash value would be a more accurate reflection of its worth.
For more insights, see: Does Renters Insurance Cover Cash
Roommates and Property
Living with roommates can be a great way to split expenses, but it's essential to understand how renters insurance works in this situation. If you have a roommate, you'll want to know what's covered in case something happens to your personal property.
Renters insurance typically protects your personal belongings, such as furniture, electronics, and clothing, in case of damage or theft. This means if your roommate accidentally breaks your TV, your insurance will help cover the cost of replacing it.
If you're worried about items being stolen from your car or while you're traveling, you'll be happy to know that some renters insurance policies cover these situations.
A different take: Does Renters Insurance Cover Theft by Roommate
Liability
Liability is a crucial aspect of renters insurance that protects you from financial risk if someone gets hurt in your home or you accidentally damage someone else's property. Your landlord's liability insurance won't cover you, so you need to have your own renters insurance policy.
You might enjoy: Renters Liability Insurance
Most renters insurance policies include personal liability coverage, which can pay for legal fees and medical expenses. This coverage can be a lifesaver if you're sued for damages you caused to others and their property.
Some common claims covered by personal liability insurance include slips, falls, and injuries, accidental damage to other people's property, damage from perils that originate in your property, and dog bites. Your insurance policy can help cover the costs of medical bills, legal fees, and damages.
If you're found liable for damages, a plaintiff can go after your personal assets, including your home, personal savings, and even retirement accounts. To avoid this, it's essential to have enough liability coverage to protect your assets. Recommended liability limits generally start at about $100,000.
Here are some examples of situations where personal liability coverage can be helpful:
- Slips, falls, and injuries: A house guest slips on your rug, breaks an arm, and sues you for their medical expenses.
- Accidental damage to other people's property: Your child accidentally breaks your neighbor's window while playing baseball outside.
- Damage from perils that originate in your property: You live in a multi-unit building and overfill a bathtub, causing water to overflow into the downstairs apartment.
- Dog bites: You incur lawsuit expenses and medical bills when your dog injures a guest in your home or damages your neighbor's property.
You can also purchase an umbrella policy, which provides additional liability insurance over and above your renters insurance policy. This can cost about $200 to $350 annually for a $1 million coverage limit.
Roommates' Property
If you live with roommates, it's essential to understand how their property is covered under your renters insurance policy. Their belongings won't be covered unless they're listed in the policy.
To ensure your roommates' property is protected, you should discuss adding them to the policy with your insurance provider. This will also give you the opportunity to adjust the coverage amount to reflect the combined value of your possessions.
When you add a roommate to the policy, the coverage will be split among each insured person, so make sure to review the policy details carefully.
Here's a rough breakdown of what to expect:
In most cases, adding a roommate to the policy will split the coverage amount, so it's crucial to review the policy details and adjust the coverage amount if necessary.
Sources
- https://money.com/what-is-renters-insurance/
- https://www.levaymack.com/what-does-renters-insurance-cover-in-florida/
- https://www.geico.com/information/aboutinsurance/renters/
- https://www.wsj.com/buyside/personal-finance/renters-insurance/renters-insurance
- https://www.deltoroinsurance.com/learning_center/does-florida-renters-insurance-cover-flooding/
Featured Images: pexels.com