Understanding Damage to Rented Premises Coverage

When it comes to event insurance, damage to rented premises or DRP is often included as part of the coverage limits. Most venues require a certain limit and it is common to have up to $1M in coverage included as part of an event insurance policy.

Looking for event insurance with damage to rented premises? See our deep analysis of over a dozen event insurance companies to find the best one for your needs.

What is Damage to Rented Premises Coverage?

Damage to rented premises coverage, also known as Tenants Legal Liability, is a crucial component of event liability insurance. It provides protection for damages that may occur to a rented venue during your event. This coverage is typically included in special event insurance policies and offers financial protection if you’re found responsible for property damage to the rented space.

Why is it Important?

  1. Financial Protection: This coverage safeguards you from costly repairs or legal expenses if you’re found liable for property damage4.
  2. Venue Requirements: Many venues require event organizers to have this coverage before allowing the event to take place3.
  3. Peace of Mind: With this coverage, you can focus on running your event without worrying about unexpected financial burdens4.

What Does it Cover?

Damage to rented premises coverage typically includes:

  • Property damage to the part of the premises you’re renting
  • Damage caused by fire
  • Damage caused by other factors

It’s important to note that this coverage usually doesn’t apply to:

  • Damage to rented contents (e.g., furniture or equipment)
  • Damage to parts of the building you’re not renting
  • Intentional damage

How Much Coverage Do You Need?

The amount of coverage you need depends on several factors:

  • The type of event you’re hosting
  • The number of attendees
  • The venue’s requirements

Most venues require at least $100,000 in coverage, but higher limits may be advisable for larger or higher-risk events.

Tips for Securing the Right Coverage

  1. Understand Your Rental Agreement: Carefully review the terms of your rental agreement to understand your liability obligations.
  2. Assess Your Risks: Consider the nature of your event and potential risks involved.
  3. Communicate with Your Insurer: Inform your insurance provider about the specifics of your event to ensure you have appropriate coverage.
  4. Consider Short-Term Options: If you’re only renting a space for a brief period, look into short-term rental insurance options.

Our Top Picks For Damage to Rented Premises Coverage

Be sure to check your venue’s insurance requirements before securing a policy!

GatherGuard
Starts at $100 for $1M/$2M GL coverage
Included damage to rented premises limit: $1M
Medical expense limit: Not included
Waiver of Subrogation Endorsement: No
Primary Noncontributory Endorsement: No
Free quote feature available

SpecialInsurance.com
Starts at $160 for $1M/$2M GL coverage

Damage to rented premises limit: $300,000 (option to upgrade to $1M)
Medical expense limit: $5,000
Waiver of Subrogation Endorsement: Yes
Primary Noncontributory Endorsement: Yes
Free quote feature available
Coverage can extend beyond midnight depending on state liquor laws, in which case only 1 day of coverage is required