Many renters fail to realize that while their renters insurance might cover things such as theft or fire damage, their policies likely do not cover flood-related damage caused by rising rivers or natural disasters. Flood insurance policies are offered separately from standard renters insurance as an add-on protection for those living in areas more prone to flooding events. Before you go out and purchase a flood insurance policy, however, there are a few important things to know that will help you find the right policy for your specific needs. Let’s dive in!
Certain Renters May Be Required to Have Flood Insurance
Homeowners and landlords with properties located in high-risk flood zones are required to have a flood insurance policy. While there aren’t such regulations for renters, it’s a good idea for renters to ask their landlords about the property’s flood zone status to determine whether or not they should consider purchasing a policy. High-risk flood zoners are usually designated with the letters “A” or “V” on a flood insurance rate map, which can be found on FEMA’s website.
Flood Insurance Rates Are Lower Outside of Flood Zones
While the flood insurance rate map is a helpful tool to identify high-risk areas, even those living outside these regions could still be at risk. According to the National Flood Insurance Program, 20% of all NFIP claims filed were from residents outside of high-risk flood zones. The good news is that these residents paid less for their insurance overall, as properties located outside of high-risk flood zones pay less for their insurance coverage due to the lower perceived risk.
The Amount of Flood Insurance You Need Depends on Your Property Value
After deciding whether or not you need flood insurance, the next step is to decide how much of it you actually need. In general, most insurance carriers recommend purchasing a policy that’s able to cover the cost of replacing all of your valuables should they all become irreparably damaged due to a flood event. There are many different policies you can choose, each of which covers specific damages and items.
Different Flood Insurance Covers Different Things
As we mentioned, there are a number of different types of flood insurance policies available, each of which offers specific coverages. These include:
- Building flood insurance: This flood insurance covers the structure and foundation, electrical and plumbing systems, cabinetry, HVAC systems, built-in appliances, and carpeting of your leased property.
- Contents flood insurance: Contents coverage includes financial support for furniture, clothes, curtains, area rugs, electronics, small appliances, and certain valuables that have been damaged in a flood.
- Indirect flood damage: Should a mudslide, sewer backup, sinkhole, or fire event triggered by a flood affect your personal property, you may be covered depending on your carrier’s indirect flood damage policy.
Some Damages Aren’t Covered Under Renters Flood Insurance Policies
Knowing what’s covered under a renters flood insurance policy is perhaps even more important than knowing what’s not covered. The following items are usually not covered under a standard flood insurance policy:
- Damage caused by overflowing sump pumps
- Damage caused by moisture, mildew, or mold
- Limited coverage in basements or crawl spaces
Before signing off on a flood insurance policy, it’s important to review your coverage with a knowledgeable insurance agent to understand what you can expect fully.
Get a Renters Flood Insurance Policy at Evans, Ewan & Brady!
Seeking flood insurance solutions as a renter? The expert insurance adjusters at Evans, Ewan & Brady are here to help you find the policy you need. For more than 40 years, our team has proudly offered the renters insurance solutions that residents need to protect their personal property when it counts. Allow our team to help you find the flood insurance policy that’s best for your specific circumstances by contacting us for a flood insurance quote today!