I'd like to rent out my TV to another person locally but I'm worried that I won't get it back. Is there such thing as insurance that would cover this person to person rental? Does anyone know of any companies that specialize in this type of insurance?

Nope. Because what you're doing is called VOLUNTARY PARTING. HIm not returning it, or breaking it, is part of the cost of doing business.

Insurance companies that issue rental equipment coverage, usually have high minimum premiums AND moderately high deductibles - like $5,000 premium, and $2500 per loss deductible - to avoid the "paperclip claims", the small ones that would drive everyone nuts.

No policy I can think of. I guess if you wanted, you could draw up your own paper contract between the two of you. Then if something happens, you can go after him, but would you really want to spend court money and time on an actual cash value TV? I had an ex that con'd me into fixing his truck and would "pay me back". When he didn't, I took it to court, I won, but didn't get a dime because he kept switching jobs & I couldn't garnish him. I just chauk'd it up as experience learned. Don't loan the TV...tell them to go to the Rent-A-Center instead.