Yes! Absolutely Yes! Between 20-50% of residents are renting properties. However, only about 2% of all flood insurance policies are for rental properties. Regardless whether you are renting or you own your property, you should consider getting flood insurance to help protect you financially from flood-related damage.
Only about 5% of renters have any sort of insurance to help protect their belongings. A renter’s insurance policy will help protect your belongings from some damages such as fire, theft, or vandalism. It can also help protect you if a visitor gets hurt on the premises. But, like a homeowner’s insurance policy, renter’s insurance does not help protect you from flood and water damages. In order to protect yourself from damage due to flooding, you will need to get a flood insurance policy.
Depending on your property’s location, the cost of flood insurance can differ. Some high-risk areas will require homeowners to get insurance. But, this can be hard to enforce for renters. It’s never a bad idea to get a flood policy! Often, low risk areas get hit, and because people assume that a bad storm won’t hit their low-risk area, they often suffer the consequences of not having insurance.
Typically, renters need somewhere between $10,000 and $50,000 worth of contents coverage. However, this can vary. Before deciding the amount of coverage you need, you should take a home inventory. Write down the list of your belongings and how much their worth. Keep receipts for valuables. You should store your inventory outside of your home in case it gets destroyed in an incident.
Because renters do not own the home, the cost of flood insurance is often cheaper. The most expensive part of flood damage is usually the damage to the home’s structure. But because renters do not own the property, the insurance price reflects it.
The National Flood Insurance Program underwrites all flood policies. However, you should call your insurance agent to discuss your specific needs. Your insurance agent can help you determine the amount of coverage you need to adequately protect your belongings from flood damage. From there, your agent will liaison with the NFIP to get you your policy. Once you purchase your flood insurance policy, it will not go into effect until 30 days later. It’s important to get flood insurance before a big storm hits.
Even if you think that you are renting a home in a low risk area, it’s still a good idea to get flood insurance for a rental property. You don’t necessarily need to be hit by a hurricane to suffer from flooding. Regardless with the recent influx of hurricanes in the United States, it might not be a bad idea to get flood insurance! When Hurricane Harvey hit Texas, 80% of those affected did not have a flood insurance policy!