Understanding Renters Insurance in Florida

There are a number of advantages to renting a home or apartment in Florida. You generally save money on your monthly payments. However, you also don’t need an expensive down payment or to pay property taxes. Sometimes you don’t even need to pay for utilities. But that doesn’t mean that renting doesn’t put you on the hook for any responsibilities. You’ll still need renters insurance for Florida residents. So make sure you understand that it is and what it covers.

Risks Your Rental Faces

When catastrophe strikes, it’s not careful about skipping rentals. So your apartment or rented home is just as at risk as someone who owns theirs. In fact, rentals are actually at some unique risks when it comes to apartments. You’re sharing the building with a number of other people whose actions and choices put you at risk on a daily basis. Just because you’re careful with your apartment doesn’t mean the person below you is.

Renters insurance Florida generally covers some risks unique to the areas as well. A big one is hurricanes. However, given the large amount of rainfall Florida faces every year, most policies need to cover for flooding as well.

Types of Renters Insurance in Florida

Unfortunately, there’s no one policy ideal for your situation. Most companies offer about a dozen different types. They cover different potential disasters like fire, lighting, theft, vandalism, smoke, explosions and even civil commotion.

Which one is right for you will largely be a matter of opinion. However, some apartment complexes or rental agencies may push you in the right direction or otherwise tell you which type of policy you need to have in order to live on their premises. Obviously, no agency wants to run the risk of one of their renters causing fire damage and then not being able to pay for it.

They can’t tell you which company to buy your renters insurance in Florida from though. So even if they outline the policy you must have, it’s still up to you to do your homework and make sure you’re getting the best value.

Taking Inventory

You’re not just insuring the place you rent though. Renters insurance in Florida is just as much about protecting your actual property. So when you’re obtaining insurance, be sure you take stock of all your property, with an emphasis on those items that cost the most. Obviously, you want to make sure you have those items covered in case the worst were to occur.

Replacement Cost vs. Actual Cash Value

There are two main ways an insurance company will cover your belongings and it’s essential that you know the difference or you’ll be in for a rude awakening if you ever need the coverage.

First, there is replacement cost. As the name suggests, this means the insurance agency will pay you however much you need to replace your property should it be stolen or damaged. So if you have a TV that gets taken from your home and it will cost $1,000 to replace it, that’s what you’ll receive (minus your deductible).

There’s also actual cash value though. With this type of policy, you’d only receive whatever your TV was currently worth when it was taken. So you may have paid $1,000 for it 10 years ago, but now it’s market value may only be $300. So that’s what they’d pay you.

A lot goes into getting renters insurance in Florida, but it’s absolutely worth it. For one thing, most places won’t rent to you without proof you have that insurance. However, you also need it to keep yourself protected because the worst can happen and you want to be prepared.