Today’s question is from Missy, who has Tampa, FL Renters Insurance. Missy wrote to us because she’s concerned about an exclusion she noticed on her policy and wants some clarification. She asks,
Why does renters insurance in Florida exclude wind coverage? Is this all Florida renters insurance policies, or just mine? Does it matter where I live?
Why Does Florida Renters Insurance Exclude Wind?
Many people who come to us for Florida renters insurance want to know why it excludes wind. Do all policies in Florida exclude wind? Is there a way around it? Does it matter if you rent?
Missy, that’s a great question and you came to the right place. Florida renters insurance experts can be hard to find, but we’ve built a reputation for providing Effective Coverage For Renters, even in locations that are traditionally difficult to place coverage.
Why Does Renters Insurance In Florida Exclude Wind?
Florida renters insurance often excludes wind based on your location. Some carriers even require a statement on the application to the effect of “I do not want the insurance on my home to cover damage from windstorms. I will pay those costs. My insurance will not.” That’s all well and good, but why? Coastal Florida renters insurance wind coverage can be difficult to find because not many companies want to take on that level of risk. That’s primarily because it’s extremely difficult for them to find reinsurance. Did you know that your Florida renters insurance company purchases insurance? Insurance companies buy reinsurance to cover certain kinds of significant losses.
Hurricanes could be an example, but the market has been hardening in reinsurance in recent years and it’s difficult for them to place coverage. It’s not acceptable for a Florida renters insurance carrier to expose themselves to draining their entire claims reserve on one incident, such as a windstorm or hurricane, that would leave little to nothing to pay other garden variety claims. So when reinsurance is not available, or when the risk to claims reserves remains too great, companies will not offer wind coverage on coastal Florida renters insurance policies. This may be a significant concern for homeowners, but not nearly as large a concern for renters. We’ll touch more on that in a moment.
Do All Florida Renters Insurance Policies Exclude Wind?
No, all Florida renters insurance policies do not exclude wind. It’s greatly dependent on your physical location. If you’re buying Miami renters insurance, you’ll find nearly every policy excludes wind. On the other hand, if you’re buying Orlando renters insurance, most do not exclude wind. They may even have a separate hurricane deductible for those claims. Often, the actual deductible amount is the same but other times it can be a percentage of the claim. Make sure you know whether wind coverage is available for your Florida renters insurance policy, and what the deductible is if applicable!
If My Florida Renters Insurance Excludes Wind, How Much Risk Am I Retaining?
If your Florida renters insurance policy does not include wind, there’s obviously an element of risk that you retain. If you live in a new construction brick or masonry building with hurricane-resistant windows such as Pierhouse at Channelside, the amount of risk you retain is significantly lower than if you live in a frame house with a shingle roof that’s been divided into apartments. Since you’re insuring liability and contents, the strength of the building in terms of hurricane safety has a direct impact on how much risk you retain without wind coverage on your renters insurance in Florida.
In new construction, you’ll find that your risk is primarily concentrated on losses secondary to infrastructure, such as food spoilage. While this would not be a covered loss if wind is excluded, $300 of food in your fridge spoiled because the hurricane took out the power grid is a far smaller risk than the flooding or destruction that can come from a hurricane in less well constructed dwellings.
How Can I Get Florida Renters Insurance When Carriers Are Leaving The State In Droves?
You can get Florida renters insurance by working with a company that prides itself on being able to place coastal Florida renters insurance and inland Florida renters insurance even when others have said no. Effective Coverage, the Florida renters insurance experts, can get you a policy in minutes! Call (800)892-4308 or click above for more information on how inexpensive it can be to protect yourself and the things that are important to you.