by rgarcia0228 » Wed Feb 04, 2009 04:08 pm
I own a small condo in South Florida that I rent out fully furnished seasonally (4-6 months per year). I have a homeowner's policy through Universal Property & Casualty Company that includes $50,000 for dwelling, $300,000 for liability and $6000.00 of personal property coverage, this is an owner's rental policy. $6000 is the max my insurance company offers on coverage for contents for this type of policy and they do not offer the option to purchase additional personal property coverage. If I had a regular owner's policy the personal property limits would be much higher (enough to cover my actual contents) but I would not be covered for example if my tenants caused a fire, water leak, etc.,not to mention liability issues.
I rent the condo fully furnished (furniture, TVs, other small electronics, fully equipped kitchen with pots/pans/dishes/glassware/utensils/small appliances/regular appliances/decorations/lamps/window treatments/linens/rugs/patio furniture/etc) and $6000 coverage is not enough to fully cover my contents. How do I get a policy to cover my additional personal property while I have tenants in the unit (let's say an additional $14,000 of personal property coverage)? The tenants only have clothing, a laptop computer, books and some other personal items? Can I have my tenants take out a "renter's insurance policy", I would pay the premium, to cover the remainder of my personal property and theirs as well? Since I am the owner and 90%+ of the personal property being covered belongs to me and I would be paying the premium, can I be the only beneficiary/payee on the policy? If so, how would claims be handled? How much would such a policy cost? The unit is on the 4th floor, there is security downstairs from 6:00am to 11:00pm and the lobby doors are locked after hours. The building has a 24hr monitored central fire alarm system. The electrical is all copper wiring in conduit and is up to current code including new electrical panel installed with the permitted renovation of the kitchen. The remainder of the year I live in the unit and switch my policy from a owner's renal policy to a regular owner's policy with higher personal property coverage.
I rent the condo fully furnished (furniture, TVs, other small electronics, fully equipped kitchen with pots/pans/dishes/glassware/utensils/small appliances/regular appliances/decorations/lamps/window treatments/linens/rugs/patio furniture/etc) and $6000 coverage is not enough to fully cover my contents. How do I get a policy to cover my additional personal property while I have tenants in the unit (let's say an additional $14,000 of personal property coverage)? The tenants only have clothing, a laptop computer, books and some other personal items? Can I have my tenants take out a "renter's insurance policy", I would pay the premium, to cover the remainder of my personal property and theirs as well? Since I am the owner and 90%+ of the personal property being covered belongs to me and I would be paying the premium, can I be the only beneficiary/payee on the policy? If so, how would claims be handled? How much would such a policy cost? The unit is on the 4th floor, there is security downstairs from 6:00am to 11:00pm and the lobby doors are locked after hours. The building has a 24hr monitored central fire alarm system. The electrical is all copper wiring in conduit and is up to current code including new electrical panel installed with the permitted renovation of the kitchen. The remainder of the year I live in the unit and switch my policy from a owner's renal policy to a regular owner's policy with higher personal property coverage.
Posted: Thu Feb 05, 2009 10:40 am Post Subject:
I think you may need to look into the rider plans for additional coverage for the personal belongings. Also, increasing the coverage limit for the personal items is a good idea. IMO you need to contact an independent agent who can find a tailor made policy for you.
Posted: Thu Feb 05, 2009 10:46 am Post Subject:
I know that Inland Marine offers coverage for personal belongings which is also very cost effective. Check out with them.
Posted: Tue Feb 17, 2009 03:55 pm Post Subject:
Coverage for your personal property is called Coverage C. More than likely if you call your insurance company and ask them to raise the Cov C on your policy they would be happy to do it for you.
Posted: Wed Mar 28, 2012 08:17 pm Post Subject:
I am not certain but I do believe that they may have come up with that number as a percentage of your coverage A or dwelling amount. You may want to ask your agent if you increase coverage A will that increase coverage C? I do feel that a good independent agent should be able to get you all taken care of, they may need additional riders. I do recommend renters insurance but that would only cover their items and not yours.
Just a quick FYI. Most Condo claims that I get involved with do not involve fires or theft, they are water damage claims. They often times are the result of a leak in a neighboring unit on either side or the worst ones are the leaks from above. You may want to double check if you have enough coverage under A as well. Keep in mind that your policy will cover your entire kitchen including all cabinetry and countertops, all flooring throughout the unit and all painting. $30,000 can go very fast on claims where there is water damage to a kitchen, flooring and a bathroom or 2.
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