Flood Insurance for Renters: What You Need to Know

Renters must contend with many of the same risks and perils as homeowners. Although you may not have invested quite as much into your residence, rental homes still require comprehensive insurance, as many common incidents can still have devastating impacts on your livelihood and interests. These coverage needs may also go beyond the capabilities of standard renters insurance, as specific perils, such as floods, are often explicitly excluded and require additional policies.

How Does Flood Insurance Work?

Flood insurance is a specialized form of property coverage that can fill a common coverage gap left behind by many renters, homeowners and commercial property policies. Typically, losses caused by these natural disasters are not included in the standard versions of the aforementioned policies, making a separate flood insurance policy necessary.

For renters, who usually do not have a financial stake in the exterior structure of their home, flood insurance policies are typically limited to contents coverage. This financial protection can help pay for losses and expenses involving your personal belongings, such as furniture, electronics and clothing that may be damaged or swept away by floodwaters.

Where Can I Get Coverage?

Flood insurance has traditionally been retained through the Federal Emergency Management Agency’s National Flood Insurance Program (NFIP). These policies are available in many communities nationwide but may have strict limitations regarding coverage options. Alternatively, private insurers have become more active in the flood insurance market in recent years and may offer policies with greater limits capable of covering particularly valuable contents of your rental home.

How Much Does Coverage Cost?

Your premiums may be based on several criteria analyzed by carriers, including the following:

• Location
• Elevation
• Proximity to bodies of water
• Building specifications (e.g., age, materials used and number of floors)
• What floor you live on in your building
• Coverage limits
• Deductibles

We’re Here to Help

If you’re a renter in the Parkland, Florida, area, contact The Byfield Agency today to learn more about flood insurance or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.