If you’re renting an apartment, condo, or house, renters insurance comes to mind. It’s a clever move, as renters insurance usually covers theft, fire, or some kinds of water damage. But here’s the surprising part: most traditional renters insurance policies don’t cover flood damage. Enter renters insurance flood coverage.
Flooding is one of the most common and costly natural disasters in the U.S. From hurricanes and intense rain, to rivers at crest or rising, water’s destruction can cause thousands of dollars in damages and obliterate loved ones’ personal possessions in just a matter of hours. A false sense of security. Some renters mistakenly believe that their landlord’s insurance policy or their standard renters policy will offer cover. Unfortunately, that’s not true. If you want to ensure that your financial well-being is protected, it’s essential that you understand renters insurance with flood coverage or a separate flood insurance policy for renters.
What flood insurance for renters is, how it works, why it’s important, and how you can get it today, everything you need to know on flood coverage for renters is covered by this article.
Why Does Renters Insurance Flood Coverage Matter?
Floods are the number one most unpredictable natural disaster and can occur in any state, not just coastal regions. Heavy rainstorms, melting of snow, blocked drains, or new construction can also increase the risk of flooding. The Federal Emergency Management Agency (FEMA) estimates just over $25,000 worth of damage for each inch of water.
Homeowners can buy flood insurance that covers those damages to their home and its contents, but renters are in a far worse place. Your landlord’s insurance policy only covers the building structure, not your belongings. If a flood destroys your furniture, electronics, or clothes, you’ll have to replace those items out of your pocket if you don’t have flood insurance for renters.
Which is why understanding renters insurance flood coverage is so important. It’s not a part of the standard renters policy automatically; you need to procure it separately through separate flood insurance offered by FEMA’s National Flood Insurance Program (NFIP) or private insurers.
What Does Renters Insurance with Flood Coverage?
If you add this form of flood protection as a renter, the policy will specifically protect only your personal belongings. Unlike your landlord’s insurance, which will repair the building itself, here is what your flood coverage will pay to replace or repair:
Furniture, couches, beds, and tables
Electronics: TVs, computers, gaming systems
Clothing, shoes, and accessories
The kitchen appliances that you may already have. (Microwaves, mini fridges, etc.)
Books, documents, and personal items.
(Keep in mind, flood insurance for renters does not cover the structure of the building itself.) The landlord must ensure that the walls, flooring, and major appliances that came with the unit.
With renters’ flood insurance, you’ll be spared the nightmare of significant out-of-pocket expenses after disaster strikes. Without it, you could lose thousands of dollars in property the first time your low-level creek, floodplain, or urban waterway floods.
Does renters insurance cover flood damage?
No. Generally, the short answer to this is no. Most regular renters insurance plans don’t cover damage sustained from flooding. While they might cover water damage resulting from a burst pipe or accidental overflow, flooding from storms, heavy rain, or rising waters is typically excluded.
This is where a lot of renters make an expensive mistake. They believe that by having renters insurance, they are covered against all water damage, but flooding is in a class of its own for risk. To obtain coverage, you’ll have to buy a renters flood insurance policy through the NFIP’s direct-sell program or a private insurer.
Without flood protection, you’ll foot the bill to replace everything you own. This is why knowing the ins and outs of renters insurance flood coverage is so important to anyone living in an area prone to flooding or even areas that don’t see much flooding but still have occasional risks.
How can renters obtain flood insurance coverage?
If you want renters insurance that includes flood coverage, you generally have to purchase it separately. Here are your main options:
NFIP (National Flood Insurance Program):
Funded by FEMA, NFIP offers relatively inexpensive flood coverage for renters if there is an active program.
Policies generally cover up to $100,000 in personal property.
Offered through numerous insurance brokers.
Private Flood Insurance:
Made available by private insurers, typically with higher limits.
Could offer supplemental benefits, like faster payouts or temporary housing.
With a little help from your insurance agent, you can also add flood insurance to your renters policy. Remember that for the most part, flood policies have a 30-day waiting period, so if you choose this option, you need to be ready for the next storm season.
How much does flood insurance for renters cost?
Renters flood insurance: What does it cost?
The price of renters’ flood insurance varies depending on your location, building type, and how much personal property coverage you want. Renters will typically pay between $100 and $250 a year, on average.
This is cheap compared to the losses that could ensue. For instance, furniture, electronics, and clothes damaged in a flood could easily run upward of $10,000. You can get peace of mind with renters insurance flood coverage for less than $20 a month.
The fact that you live in a high-risk flood zone will make your policy more expensive, but people who only face a moderate or low risk can buy coverage — and often at very affordable rates.
What is not covered by flood insurance for renters?
Though renters insurance with flood is extremely helpful, it doesn’t take care of everything. Exclusions may include:
Insurance-related damage to the building (the landlord insures the building).
Additional living expenses (temporary housing) unless provided by the private market.
Currency, gold or silver coins, and stock certificates.
Cars (you must have an individual auto insurance policy with comprehensive coverage).
Mold or mildew damage resulting from, but not limited to: Neglect.
Knowing this exclusion can help you set reasonable expectations. You may choose to bundle your flood insurance with standard renters coverage for maximum protection.
If renters in low-risk flood zones need coverage?
Yes, absolutely. Flooding is possible anywhere; it’s not only for high-risk regions. As a matter of fact, FEMA itself states that 20% of claims for flood insurance come from homes that are not in high-risk flood areas.
If you live near rivers or lakes or even in a section of New York and other states that has poor drainage, you are not immune. Low-risk renters typically pay low rates for flood insurance, which remains cheap in most cases. Given that this insurance is cheap yet very protective, it’s wise to get flood insurance as a renter even if your landlord or neighbors tell you it isn’t needed.
How do you make a flood insurance claim as a renter
Here’s how the claims process works if a flood causes damage to your personal property:
After the flooding, contact your insurance provider right away.
Take fair photographs and make lists of lost items.
Submit a Proof of Loss, describing your claim in writing.
Team up with an adjuster, have them look at your property, and verify damages.
Get reimbursed for covered items according to your policy.
Renters insurance flood coverage helps you recover faster by providing assistance to get back on your feet. And maintain an up-to-date inventory of all your possessions with corresponding photos or receipts.
Conclusion:
Flooding is one of the most destructive and costly disasters renters can experience, but basic renters insurance won’t even protect you. And that’s why knowing how renters insurance flood coverage works or doesn’t is crucial.
Whether through the NFIP or private insurers, flood coverage in a renters insurance policy should put your mind at ease knowing that all of your stuff is financially safe from flooding. Floods can happen even if you don’t live in a high-risk zone, so flood insurance for renters is such a helpful investment.
Don’t wait for disaster to strike, check out your options now and compare prices so you get the best coverage. Securing your stuff now helps you recover faster, with your insurer’s support and assistance, when something surprising happens.
For More Info: Contact Us
FAQs:
Do renters need flood insurance?
Not really, but if you live in a flood-prone area, your landlord may require one of these to live in the building.
Can I purchase flood protection as an endorsement to my renters policy?
More often than not, it’s no: Flood insurance is bought separately from either NFIP or private insurers.
Does flood insurance pay for temporary housing if I have to move out?
(NFIP policies do not, although some private insurers might provide that benefit.
When may my flood policy begin?
Typically, there’s a 30-day waiting period, so plan.
Can roommates be on one flood policy?
Yes, if the policy includes all roommates on it.