RENTERS’ INSURANCE TOOLKIT
Florida Department of Financial Services Division of Consumer Services www.MyFloridaCFO.com/Division/Consumers 1-877-MY-FL-CFO (693-5236)
December 2019 RENTERS’ INSURANCE TOOLKIT
How many times have you turned on your television and see where an apartment building was totally destroyed by fire and the tenants lost everything because they were uninsured? In many cases, the tenant was unaware their personal property could have been covered by a renters’ policy for a very reasonable price.
Your landlord insures the structure you live in but provides no coverage for your personal property. To protect your personal property, you should consider purchasing a renters’ insurance policy.
This toolkit provides information to assist you with insuring your personal property. It also contains tools to assist you if you have a covered loss.
Florida Department of Financial Services | Division of Consumer Services Table of Contents Click a page number to navigate to a section. section 01 Insuring Your Personal Property 4 section 02 What Your Renters’ Policy Covers 6 section 03 Cancellation & Nonrenewal Provisions 8 section 04 The Claims Process & Inventory Forms 9
Renters’ Insurance Toolkit section Insuring Your 01 Personal Property
Renters’ insurance provides protection against financial loss if your personal property (contents) is damaged or destroyed by a covered peril. A peril is something that causes or may cause damage, loss, or destruction, such as a fire, tornado or hurricane. A list of perils that are typically covered is provided in Section 2. A renters’ insurance policy includes coverage for more than just your personal property. It also includes coverage for loss of use, personal liability, and medical payments to others. In some cases, flood coverage may be added by endorsement to your renters’ policy. If your company doesn’t provide flood coverage for your personal property, a separate flood policy can be purchased. Consult your agent for additional information. Please remember that the terms and conditions of insurance policies vary between insurance companies. Once you purchase your policy, review the coverage provided to ensure that it offers the amount of protection you need. It’s too late to obtain additional coverage after a loss has occurred.
4 | Florida Department of Financial Services | Division of Consumer Services Do I need renters’ insurance?
You can determine this by asking yourself the following questions:
• How much is my personal property worth? • Can I afford to replace my personal belongings if they are destroyed or stolen?
• How would I pay an attorney to defend me if I caused property damage or bodily injury to someone and were sued?
• How would I pay the additional cost of temporary housing if the residence where my personal property is located was destroyed?
How much insurance What factors do I need? determine the Take an inventory of your personal property. An premium I pay? inventory form is included in this toolkit for your convenience. List each item, when it was purchased and Some of the factors influencing the the purchase price. Include serial numbers if available. premium you pay are: Once your inventory is complete, total the amounts to get a rough idea of what your personal property • The amount of coverage you select is worth. It is not uncommon to discover you have • The type of coverage you select a lot more invested in personal items than you may have realized. Keep in mind while listing your • The deductible you select personal property, coverage limitations may apply • The location of your residence to some types of items. It may be necessary to • The construction of your residence purchase additional coverage or add an endorsement to the policy to provide sufficient coverage. This is • The age of your residence discussed in more detail in Section 2 of this toolkit. • The age of the roof, plumbing, electrical wiring, heater and air Some policies may contain an inflation guard which conditioner increases coverage by a certain percentage each year. However, it’s your responsibility to make sure • Your prior claims experience you have and maintain adequate coverage.
Back to Table of Contents Renters’ Insurance Toolkit | 5 section What Your Renters’ 02 Policy Covers
Personal Property
Appears as Coverage C on your falling objects, weight of ice, policy – Your personal property snow or sleet, accidental is normally covered anywhere in discharge or overflow of water or the world; unless, the property steam, tearing, cracking, burning is located at another residence or bulging, freezing, sudden owned by you and not insured. and accidental damage from If your property is located in artificially generated electrical another residence owned by you, current, and Catastrophic but not insured, your renters’ Ground Cover Collapse. (Sinkhole policy may limit the amount of coverage may be purchased by coverage provided to 10% of the paying an additional premium.) price, or the price it would total coverage limit. Most policies cost to replace it with an item also include limited coverage for *If your residence is located in of like type and quality. improvements or enhancements the Wind-Pool Area, Windstorm Replacement cost pays for the you make to the residence. Coverage may be excluded by cost of replacing the damaged the insurer as a covered peril on or destroyed item. For example, Special Limits on your renters’ policy. To obtain you purchase a television with that coverage you would have Some Items a 10-year life expectancy. Five to purchase a separate There are special limits (known years later, it is destroyed in a as sub-limits) on certain items windstorm policy. fire. The actual cash value is 50 such as jewelry, guns, furs, percent of the replacement cost, money, cameras, cash, art or Actual Cash Value vs. since 50 percent of its lifespan antiques, etc. You should review Replacement Cost has passed. In this example, if this list found in your policy Coverage can be obtained the policy settled on an actual and speak to your agent about that settles claims based on cash value basis and a new additional coverage if needed. the “actual cash value” of the television of like kind and quality personal property at the time cost $1,000, you would receive Perils Covered of loss or that settles claims $500, notwithstanding any Renters’ insurance policies on a “replacement cost” basis. deductible. If your policy settled typically cover damage caused This is something you should claims on a replacement cost by certain “named perils”. discuss with your agent. Those perils usually include basis, the settlement amount fire or lightning,windstorm* Actual cash value means the would be the full cost of a new or hail, explosion, riot or civil cost to replace an item, less television, $1,000. Of course, the commotion, aircraft, vehicles, depreciation. This means you’ll replacement cost endorsement smoke, vandalism or malicious receive the current value of the costs more, but it provides mischief, theft, volcanic eruption, item, not its entire purchase much broader coverage.
6 | Florida Department of Financial Services | Division of Consumer Services Loss of Use Appears as Coverage D on your policy - When your residence is uninhabitable due to damage caused by a covered peril, your renters’ policy provides reimbursement for additional living expenses. Additional Living Expense (ALE) ALE refers to excess expenses that you, as the insured, incur if you were to lose access to your primary residence and were forced to live elsewhere. In many instances, coverage is provided if a civil authority prohibits you from use of the residence or its premises as a result of direct damage to neighboring premises by a covered peril. ALE pays only reasonable “excess” expenses until the property is habitable. For example, let’s say your family normally spends $200.00 a week for groceries. As a result of the damage to your kitchen, you can no longer cook, so you eat out for all of your meals. The cost of eating out for your family averages $400.00 a week. The insurance company should pay the difference between the amount you normally spend for groceries and the amount it cost to eat out, which is $200.00. It is important to note that additional living expense must normally be incurred prior to reimbursement and is always contingent upon providing the insurance company with receipts. Be sure to save all receipts, regardless of the amount. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere.
Personal Liability Medical Payments
Appears as Coverage E on your policy - This is Appears as Coverage F on your policy - Covers designed to cover amounts that you become legally medical and other related expenses for visitors liable to pay due to bodily injury, such as, a slip that are injured through personal activities on and fall at your residence, or for damage to the your property, typically without regard to your property of others, and includes the cost of legal legal liability. defense. The insurance company’s duty to settle or defend ends when the policy limit is exhausted.
Back to Table of Contents Renters’ Insurance Toolkit | 7 section Cancellation & 03 Nonrenewal Provisions
Insurance companies can take up to 90-days to decide whether you meet theirunderwriting guidelines. Within this 90-day period, a company must give you a 20-day notice if it intends to cancel the policy, except for nonpayment of premium, which requires a 10-day notice. After 90-days, your company may only cancel your policy if: • You don’t pay your premium; • You provided false information on your application; • You failed to comply with the company’s underwriting requirements; or • You increased your risks through new activities or home improvements. For reasons other than nonpayment of premium, the company must provide a 120-day notice before it may cancel your policy. Companies can non-renew your policy, with proper notice and under certain conditions. The non-renewal notice must be provided at least 120-days in advance. You may cancel your policy at any time by providing a written request. You should receive a refund of any unearned premium, which is the amount that hasn’t been earned by the insurance company. You are only required to pay for the period of time you were insured. However, if you cancel an insurance policy before the coverage period is over, the company may retain 10% of the unearned premium amount.
8 | Florida Department of Financial Services | Division of Consumer Services section The Claims Process & 04 Inventory Forms
The first thing you should do if you have a covered loss is promptly report the loss to your agent or insurance company. The insurance company will assign an insurance adjuster to handle your claim. You must take appropriate steps to prevent further damage after a loss. This may mean moving your personal property to a temporary location or performing emergency repairs to the residence to prevent further damage. You should keep all of your receipts for costs related to protecting your personal property from further damage. You should inspect the damaged property or anything you sign and any emails separate the damaged personal they may deny your claim. Make you exchange with the insurance property from the undamaged. sure your adjuster is properly company. You may use the licensed in Florida. If you have sample log (on the next page) An inventory of the damaged any questions about the license to record the name and contact personal property must be status of an adjuster or the information for the adjuster completed in order for the way your claim was handled, assigned to your claim, as well insurance company to determine call the Florida Department of as any conversations you have. the total cost of the damage. An Financial Services Insurance inventory form is included in this You should also document Consumer Helpline toll-free at toolkit for your convenience. attempts to contact the 1-877-MY-FL-CFO (1-877-693-5236). Also, you should never throw adjuster that were unsuccessful away any damaged personal Keep a phone log of the dates, or conversations with property until instructed to do times and names of all persons others regarding your claim. so by the adjuster. The company you speak to regarding your This information may be must be given the opportunity to claim. Also keep a copy of beneficial at a later date.
A phone log can be found on the next page.
Back to Table of Contents Renters’ Insurance Toolkit | 9 Phone Log
Adjuster’s Name:
Adjuster’s Firm:
Adjuster’s Phone Number:
Adjuster’s License Number:
Claim Number:
Communication Log:
10 | Florida Department of Financial Services | Division of Consumer Services Options for Resolving Claim Disputes
Mediation is a process where a to accept the offer made by to negotiate with the insurance trained mediator meets with you the insurance company at company’s appraiser in an effort and your insurance company in the mediation conference. To to reach a settlement. If the an attempt to reach an amicable determine if your claim qualifies two appraisers cannot reach agreement. The mediator for mediation, call our Insurance an agreement, they will hire an helps both parties focus on the Consumer Helpline toll-free at impartial umpire. The cost of issues, but does not dictate the 1-877-MY-FL-CFO (1-877-693-5236). the umpire is shared by you and outcome of the discussion. The If you and your insurance the insurance company. When insurance company pays the company cannot reach a two of the three (appraisers cost of the mediation process. satisfactory settlement, your and/or the umpire) reach Mediation is not binding on policy may allow appraisal. In an agreement, it is typically either party. You are not required appraisal, you hire an appraiser binding upon both parties.
Types of Adjusters
Adjusters evaluate and estimate Independent adjusters and in the contract as a percentage claims. In order to legally adjust adjustment firms are hired and of the amount they collect on claims in Florida, adjusters must paid by insurance companies to your behalf. In Florida, there are be licensed by the State of Florida adjust their policyholder’s claims. limitations on the amount public (with the exception of Independent They inspect and estimate your adjusters can charge depending or Company adjusters that loss and submit a damage report upon the type of claim you have. adjust only flood policy claims to the insurance company. The When you call to verify a public underwritten by the National insurance company makes adjuster’s license, you should the final decision regarding Flood Insurance Program). also verify the amount they the amount of the settlement are charging you is correct. Company adjusters work and are payment due to you. paid by your insurance company In the event of a disaster, Public adjusters may be self- to inspect and estimate your loss. the Department will issue They submit a report directly to employed or work for a public emergency adjuster licenses to the insurance company, which adjusting firm. You may hire assist in adjusting losses directly is used by the company to a public adjuster to estimate resulting from the disaster. These determine the amount of claim your damage and negotiate licenses are valid for up to 180 settlement payment due to you. a settlement on your behalf with the insurance company. days from the date of issue Independent adjusters may A public adjuster will charge a and may be extended. These be self-employed or work for fee to handle the claim on your individuals are also hired and an independent adjusting firm. behalf. Their fee must be stated paid by insurance companies.
Back to Table of Contents Renters’ Insurance Toolkit | 11 Property Inventory
Complete a room-by-room attic, garage, porch, patio, your inventory list for items that inventory with the forms we workroom, or sheds. In addition may be underinsured due to have included in this toolkit. to completing an inventory, the policy sub-limits imposed If you have a covered loss, take photos of your personal on certain types of personal this inventory will provide property. Pictures add details property. Since insurance policies you with the complete and about your inventory that written differ, you should check your accurate information that the documents can’t. Also, on larger own insurance policy for the insurance company will need ticket items, include serial types of personal property to process your claim. The numbers if they are available. subject to limitations. If you more detailed documentation determine you need additional you can provide during the Once the inventory is complete, coverage for any of these items, claims process, the fewer estimate the replacement cost contact your insurance agent. problems you will experience. of your inventory using current prices and compare that amount It’s very important to update The following inventory includes to your personal property your inventory at least once the main rooms of a home, but coverage limit. If you feel your a year. don’t forget other areas such coverage should be increased, as your closets, basement, contact your agent. Also, review
Personal Asset Inventory An inventory form for each of TIPS the following rooms has been included in this toolkit for your convenience. Use additional If possible, take sheets for each room photographs or video if necessary. of your property and • Living Room store all records in a • Dining Room safe, dry place. • Kitchen • Family Room (Den) When submitting a renters’ • Bedrooms insurance claim, provide copies • Bathrooms of your original documents, • Other never give original inventories or documents to anyone. If the original document is damaged, there is no way to reproduce a replacement.
12 | Florida Department of Financial Services | Division of Consumer Services Living Room Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Furniture Sofas/Chairs
Mirrors
Lamps
Rugs/Carpet
Tables
Curtains/Draperies
Entertainment Center
Bookcases/Books
Other: Arts & Crafts Pictures/Paintings
Sculptures/Pottery
Other: Electronics Television
Stereo
VCR/DVD
CDs
Telephones
Computer
Clocks
Other: Miscellaneous Air Conditioner
Cabinets
Fireplace Fixtures
Blinds
Other: Additional Notes:
Back to Table of Contents Renters’ Insurance Toolkit | 13 Dining Room Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Furniture Tables
Chairs
Cabinets
Curtains/Draperies
Chandeliers/Lamps
Mirrors
Rugs/Carpet
Other: Electronics Telephones
Clocks
Other: Arts & Crafts Pictures/Paintings
Sculptures/Pottery
Other: Miscellaneous China/Crystal
Glassware
Table Linens
Blinds
Other: Additional Notes:
14 | Florida Department of Financial Services | Division of Consumer Services Kitchen Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Furniture Floor Mats
Cabinets
Curtains/Draperies
Tables
Chairs
Other: Major Appliances Freezer
Refrigerator
Oven
Microwave
Other: Utensils Pots/Pans
Silverware
Glasses
Plates/Dishes
Cooking Utensils
Other: Miscellaneous Blender
Toaster
Can Opener
Coffee Maker
Pictures/Paintings
Blinds
Cabinets
Other: Additional Notes:
Back to Table of Contents Renters’ Insurance Toolkit | 15 Family Room (Den) Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Furniture Tables
Sofa/Chairs
Rugs/Carpet
Entertainment Center
Game Table
Bookcases/Books
Desks
Mirrors
Other: Arts & Crafts Pictures/Paintings
Sculptures/Pottery
Other: Electronics Television
VCR/DVD
Stereo
CDs
Computer
Video Game System
Clocks
Other: Miscellaneous Air Conditioner
Fireplace Fixtures
Blinds/Draperies
Other: Additional Notes:
16 | Florida Department of Financial Services | Division of Consumer Services Bedrooms Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Furniture Beds
Nightstand
Lamps
Desks
Rugs/Carpet
Bed Linens
Curtains/Draperies
Dressers
Bureaus/Chests
Bookcases/Books
Mirrors
Other: Arts & Crafts Pictures/Paintings
Sculptures/Pottery
Other: Electronics Computer
Clocks
Television
VCR/DVD
Stereo
CDs
Other: Miscellaneous Blinds
Clothing
Other: Additional Notes:
Back to Table of Contents Renters’ Insurance Toolkit | 17 Bathrooms Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Furniture Hamper
Floor Mats
Mirrors
Bath Mats
Bathtub
Curtains/Draperies
Other: Arts & Crafts Pictures/Paintings
Sculptures/Pottery
Other: Electronics Electronic Toothbrush
Hair Dryer
Shaver
Curlers
Other: Miscellaneous Towels/Linens
Toiletries
Scale
Other: Additional Notes:
18 | Florida Department of Financial Services | Division of Consumer Services Other Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Real Estate
Vehicles Cars/Trucks
Boats
RVs
Other: Jewelry & Collectibles
Computer Hardware/Electrical Devices
Additional Notes:
Back to Table of Contents Renters’ Insurance Toolkit | 19 Other Inventory Purchase Purchase Item Qty Brand Name Make/Model/Serial # Date Price Miscellaneous Cameras
Furs
Antiques
Tools
Firearms
Plants
Toys/Porcelain Dolls
Telescope
Fish/Fish Tanks
Musical Instruments
Outdoor Furniture
Lawnmower
Other: Additional Notes:
20 | Florida Department of Financial Services | Division of Consumer Services Additional Resources
Hopefully, this toolkit has provided you with a thorough understanding of renters’ insurance and valuable information on how to protect yourself and your belongings while renting a property in the state of Florida. For more information, please visit the websites below.
PURCHASING INSURANCE HOW TO PROTECT YOURSELF
Do you want to purchase insurance coverage but need information concerning the process or how to protect yourself? Visit the Department’s Purchasing Insurance web page to review a variety of topics to think about before purchasing insurance.
www.MyFloridaCFO.com/Division/Consumers/PurchasingInsurance/
UNDERSTANDING INSURANCE CHOOSE THE RIGHT INSURANCE FOR YOU
Have questions about insurance coverage? Browse the Department’s Consumer Guides, On Demand Video Library and Insurance Overviews to gain a better understaning of the various insurance products available to you prior to purchase.
www.MyFloridaCFO.com/Division/Consumers/UnderstandingCoverage/
Back to Table of Contents Renters’ Insurance Toolkit | 21 FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF CONSUMER SERVICES’ HELPLINE 1-877-MY-FL-CFO (1-877-693-5236) www.MyFloridaCFO.com/Division/Consumers