Your landlord has insurance on the home or building. But, it won’t cover your personal belongings.
Renters insurance offers personal property coverage and personal liability coverage. It also provides “loss of use” coverage if your rental becomes unlivable due to damage.
However, there are limits to coverage. That’s where endorsements and floaters enter the picture, with the option to add more coverage to your policy.
Renters insurance endorsements and floaters
Renters insurance protects your belongings from damage caused by an insurance peril. A peril is an event that may damage your belongings, like theft, fire, and storms. Even if damage is caused by an insurance peril, there may be limits or exclusions to coverage.
When there are coverage limits or exclusions, renters have the option of adding an endorsement, also known as a rider, or a scheduled floater to their policy for additional coverage. An endorsement (or rider) is an amendment or change to the policy adjusting the coverages. A scheduled floater typical only covers a certain item or thing.
For example, renters insurance policies cover up to a certain amount, usually around $20,000 or $30,000 worth of coverage — depending on the value of your personal belongings. Most renters insurance coverage for electronics is capped at around $2,500. Jewelry limits are usually lower, at $1,500.
If the value of your electronics or jewelry exceeds these limits, you should increase your limits or get a personal effects add-on rider. If you have riders for fine art and specialty jewelry, you will be required to catalog and provide appraisals for them.
Both endorsements and floaters make changes to the policy, but a floater has limited scope — such as just your wedding ring — whereas an endorsement would impact all of your personal effects. As the Insurance Information Institute notes, although a floater is more expensive than an endorsement, it offers more comprehensive coverage.
Deductibles may be different for endorsements and floaters
When adding an endorsement, you may be able to choose a lower deductible or no deductible for the items the endorsement covers. For things covered by your standard policy coverage, the deductible remains the same.
For most renters insurance policies, the standard deductible for every claim filed is between $500 and $1,000. If you have a claim for an endorsement or floater item, like jewelry, you will have to pay whatever that deductible is, not the standard deductible.
Each insurance company handles endorsements and floaters differently, so be sure to talk to your provider to understand if there are different deductibles and how they work.
Types of endorsements and floaters
Remember that endorsement riders and floaters are an add-ons to your insurance policy, incurring an additional cost that will increase your premium.
Some insurance providers may include some of the items listed below as part of your policy, while others may not. Coverage varies depending on your carrier, so be sure to check with your insurance agent.
You may also consider an umbrella policy for extra coverage.
Item | Why floater or rider may be required |
Jewelry, furs, fine art, musical instruments, collectibles | Standard policies usually limit or exclude these items or won’t cover accidental loss. If you get a endorsement or floater, you may be required to submit an appraisal. |
Pets | Exotic pets and certain dog breeds are excluded from personal liability coverage, requiring an umbrella policy. |
High-end electronics and sports equipment | Standard policies usually limit or exclude these items or won’t cover accidental loss. If you get a endorsement or floater, you may be required to submit an appraisal. |
Cyber liability | This is more expansive than identity theft, keeps your personal data secure, and protects you from cyber crimes. Cyber liability coverage will vary depending on your carrier. |
Flood insurance | Flood damage is not a covered insurance peril and requires separate coverage, especially if you live in flood zones. |
Earthquake insurance | Earthquake damage is not a covered insurance peril and requires separate coverage. |