Flood Insurance: 3 Things All Renters Should Understand

11/13/2020 (Permalink)

If you rent property, you likely understand the importance of insurance coverage. Renter's insurance covers damage to your belongings in most situations, but most renter’s policies don’t cover flood damage. If the property is within a designated flood zone, the property owner likely has a flood policy, but that policy won’t help with any of your expenses. Read on for three things you should understand about flood insurance.

Understand the Definition of “Flood”

If the supply line to your toilet breaks and your bathroom floor is covered in an inch of water, you might say that the pipe break “flooded” the bathroom. In insurance lingo, however, this would be considered “water damage.” The word “flood,” in the context of property insurance, refers to damage caused by a storm surge, heavy rain, storm-level winds, or rising water. Most renter's insurance specifically excludes coverage for flood damage.

Understand Your Risk
FEMA has determined the probable flood risk for nearly every part of the U.S. and created maps of the designated flood zones. You can check Hall Park, OK’s flood zone designation on FEMA’s website. Keep in mind, however, that roughly 33% of all flood claims occur in low-risk zones.

Understand the Consequences
In the event of a flood, flood insurance will cover the cost to replace damaged personal property, as well as the cost of temporary housing and other living expenses if you must relocate while the rental property is being repaired. Since flood-damaged property requires specific flood remediation procedures to be habitable, you will likely need to vacate the property at some point. Without flood insurance, you could end up having to replace any damaged belongings yourself, in addition to covering your housing costs until the rental property is restored.
If you rent in an area that’s storm-prone or is within a federal flood zone, it’s worthwhile to consider supplementing your renter's insurance with a flood insurance policy. These policies are typically inexpensive, and well worth the investment if a flood should occur.