Renting a House this Summer? Be sure you have the right coverage...

If you are renting a vacation home during the summer, any personal possessions you take with you are covered under your homeowners or renters insurance policy. Belongings are protected against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods) anywhere in the world, minus your deductible. But keep in mind that some policies may limit the amount of off-premises coverage to 10 percent of the total coverage for personal possessions. For example, if you have $100,000 worth of personal possessions insurance for your primary residence, only $10,000 would be applicable to possessions you bring with you to your vacation home.

Your personal belongings are not only covered at your vacation rental, but also in the event they are stolen from your car.

If you have expensive jewelry, musical instruments or sports equipment, you may want to consider purchasing a floater (also known as an endorsement) to your home or renters policy. This provides a higher amount of insurance and broader coverage. Most floaters, for instance, include additional coverage for “mysterious disappearance,” meaning you are generally protected even if you lose the item. Having a floater or endorsement provides additional coverage not just while you are on vacation but also throughout the year.

When choosing your homeowners or renters insurance, there are two types of policies to consider. Actual Cash Value pays to replace your possessions up to the limit of your policy, minus a deduction for depreciation. Replacement Cost pays the current cost of replacing your belongings (regardless of depreciation), also up to the limit of your policy.

Before heading on vacation, take the following steps:

1. Contact your insurance professional at MIM. Ask about the insurance implications of renting a summer home and whether you may need supplemental insurance. If you have any questions, the time to ask is before you have a loss.
2. Create a “vacation inventory”.  Keep a detailed list and take photos.  Especially of all valuables you plan on taking, such a lap tops, phones, musical devices, sports equipment, etc.   
3. Leave expensive jewelry at home. Unless you plan to attend a fancy event, it may make sense to leave expensive jewelry at home or store it in a safe deposit box. You may save money on the cost of insuring your jewelry as some companies offer “in vault” coverage. If you wear the jewelry for a special occasion, many insurers will offer the option of purchasing additional coverage for the time it is out of the bank. You do, of course, have to notify your insurer in advance.

Whether you’re renting a bungalow at the beach, a log cabin in the mountains or a condo in the desert, Modern Insurance Marketing Inc. can help you understand how to protect your personal possessions while you are away, leaving the worries behind.

www.moderninsurance.com