If you’re a renter, you probably know it’s important to have renters insurance to protect yourself against all kinds of perils. But you may not realize that not all perils are covered. Take, for example, floods.
While renters insurance may pay for water damage from a pipe that bursts unexpectedly or a dishwasher that overflows suddenly, it typically doesn’t cover flood damage. If you want that kind of protection, you should consider purchasing a separate flood insurance policy.
Key Points
• Renters insurance typically does not cover flood damage.
• Separate flood insurance is required for flood protection.
• Separate flood insurance is required for flood protection.
• Cost varies based on location and coverage limits.
• Contents-only policy covers up to $100,000 of personal property.
Understanding Flood Damage and Standard Renters Insurance
Renters insurance can protect tenants in a few key ways. It provides financial reimbursement for covered losses to your personal property. It can help protect you if someone is injured while on your property. And some policies will also pay your living expenses if your home is deemed uninhabitable due to damage from a covered peril, like a fire or storm.
Unfortunately, policies don’t typically cover damage to your rental or belongings that’s caused by a flood. As we discussed, for that type of coverage, you will need to look into purchasing a flood insurance policy for renters.
How Separate Flood Insurance Policies Protect Renters
Renters who live in one of the 22,600 participating National Flood Insurance Program (NFIP) communities may be eligible to purchase renters flood insurance. The NFIP is managed by the Federal Emergency Management Agency (FEMA) and is delivered to the public by a network of more than 47 insurance companies and the NFIP Direct.
To purchase flood insurance, you can get a quote with the NFIP Quote Tool available via FloodSmart.gov. Then, share the quote with an agent near you, or call your insurance company directly. There is typically a 30-day waiting period for an NFIP policy to go into effect.
The cost for flood insurance for renters depends on a variety of factors, including whether your rental is located in a flood plain or other high-risk area and your renters insurance coverage limits. Living near a body of water within a high-risk area will usually drive flood insurance prices up.
The Flood Exclusion (and Related Limitations) in Renters Insurance
Standard renters insurance policies typically exclude flood damage. Renters insurance often covers water damages from unexpected events, like burst pipes, leaking appliances, and accidental water discharge from plumbing. As we’ve mentioned, to protect your belongings from flood damage, you’ll need to purchase a separate renters flood insurance policy.
Flood insurance for renters is typically a “contents-only” policy, so only your personal property within the rental unit will be covered. Renters flood insurance can cover up to $100,000 of tenant-owned property in rental units above the lowest elevated flood, according to FEMA. This can include things like furniture, clothing, electronics, and other personal items. Coverage for contents below the lowest elevated floor or in a basement or basement apartment is generally limited to a washer, a dryer, a freezer, and the food in it.
Protecting Your Belongings From Flood Damage as a Renter
One of the most effective ways to protect your belongings from flood damage as a renter is by having renters flood insurance coverage.
Other proactive measures include moving valuable belongings to higher ground, creating flood barriers like sandbags to block water from entering your rental, and sealing cracks and gaps around windows, doors, pipes, and wires.
If you see appliances or parts of the rental unit that are in need of upkeep, be sure to let your landlord know so that they can be promptly fixed.
What to Do After Experiencing Flood Damage in Your Rental
If a flood is in progress in your rental, immediately turn off the gas, electricity, and central air conditioning and heating to prevent further damage. Then, contact your landlord or property manager to inform them about the flood and any damage.
If you have renters flood insurance and want to file a claim, then you should also contact your insurance company to start the claims process. Take photos and videos of the water and the damage to your belongings for insurance purposes.
However, before making the call, it’s helpful to consider the pros and cons of filing. One clear benefit of filing a claim is that you’ll hopefully receive money for some or all of the costs to fix or replace your items (and, depending on the extent of the damage, perhaps pay for your living expenses while your home is being repaired).
However, you’ll be on the hook for any insurance deductibles. If the only thing that was damaged during the flood was a cheap couch that is several years old and broken, it might not be worth filing a claim, especially if the insurance company raises your premium afterward. The process can also be time consuming and potentially frustrating.
Recommended: What Is Renters Insurance and Do I Need It?
The Takeaway
Does renters insurance cover flood damage? While renters insurance water leak damage from unexpected pipes bursting or leaking appliances might be covered, water damage from floods will likely not be covered. If you rent in a high-risk flood zone, you’re generally not required to have flood insurance, but it is recommended. And keep in mind, floods can still occur well outside of high-risk flood zones.
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FAQ
Does renters insurance cover any type of water damage?
Renters insurance does cover some types of water damage, such as damage from an unexpectedly burst pipe or a leaky roof from a leaking appliance.
Where can renters buy flood insurance?
Renters who live in a National Flood Insurance Program (NFIP) area may be able to buy flood insurance from one of the more than 47 participating insurance companies. You can get a quote through the online NFIP Quote Tool, and then contact the insurance company to purchase the renters flood insurance policy.
What does flood insurance for renters typically cover?
Renters flood insurance can cover up to $100,000 of tenant-owned property in rental units above the lowest elevated flood. This can include things like furniture, clothing, electronics, and other personal items. Coverage for contents below the lowest elevated floor or in a basement or basement apartment is limited to a washer, a dryer, a freezer and the food in it.
Is flood insurance expensive for renters?
The cost for flood insurance for renters depends on a variety of factors, including your renters insurance coverage limits and whether your rental is located in a floodplain or other high-risk area. Living near a body of water within a high-risk area will usually drive up flood insurance prices.
Do I need flood insurance if I don’t live in a high-risk flood zone?
Generally speaking, you are not required to have flood insurance if you don’t live in a high-risk flood zone, but it is usually recommended. Floods can still occur outside of high-risk flood zones.
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