I often encourage my clients to read their insurance policies because it is vital for every policyholder to have an understanding of what is and isn’t covered when it comes to their insurance policies.
With hurricane season approaching, I’ve had several clients living in Florida call me asking why their renter’s insurance policies exclude wind.
Normally, renter’s insurance covers hurricane damage to your personal property, medical payments, and additional living expenses (ALE) if the property you’re renting is damaged or destroyed by a hurricane. The actual damage to the building and structure of your rental is not covered by your renters insurance but will be covered by the building owner’s insurance policy.1 It’s important to note that some exclusions still apply, such as water damage caused by flooding from a hurricane. This is usually excluded from standard renter’s insurance.2
However, wind coverage in Florida renter’s insurance may or may not be available as part of your policy. Wind coverage in Florida is largely dependent upon your location. Renters insurance covering wind can be difficult to find for coastal Florida renters because of the high level of risk associated with insuring coastal properties. Renter insurance companies often fear the potential of draining their entire claim reserves on one incident, such as a windstorm or hurricane event. That is why most policies will include wind coverage except in coastal areas or other regions that are at a high risk for windstorms and hurricanes. For example, policyholders will discover that most policies in Miami will exclude wind while Orlando renters are more likely to find a policy without a wind exclusion.3
If your Florida renters insurance policy excludes wind coverage from your policy, you may need to add an endorsement or rider to your policy to ensure you are protected.
Thought of the day: “If opportunity doesn’t knock, build a door.” – Milton Berle