Flood Insurance For Renters

Countless telephone calls and e-mails have been flowing in during this time of year inquiring about Flood Insurance For Renters!  ‘Is Flood Insurance Available For Renters?’  ‘I am renting a home, can I buy Flood Insurance?’

Flood Insurance consists of the Property Section (Dwelling Insurance)  and the Contents (Personal Property Insurance).   It is wise for tenants to insure their contents.   The flood insurance policy premium depends on the amount of coverage and the flood risk of the occupied building.

LOW TO MEDIUM RISK

Renters in low to medium risk areas are able to buy coverage at a preferred rate.  The Preferred Risk Policy premium are the lowest premium available through the National Flood Program (NFIP-FEMA). The Preferred Risk Policy offers a premium of as low as $61 per year for Contents Only Coverage in some low risk areas;  this policy would include $8,000 of contents coverage.

If the building where the contents are located doesn’t qualify for a Preferred Risk Policy, a standard policy is available.  All households can be subject to Flood damage; over 25% of Flood Insurance Claims are filed by people outside the high risk areas.

HIGH RISK

For those living in high risk areas, a standard policy is the only available policy.  A few of the Rating factors are as follows:

• Year of building construction
• Building occupancy
• Number of floors
• The location of its contents
• Its flood risk (flood zone)
• The deductible chosen and the amount of coverage

It is important to remember that following a disaster, disaster assistance may become available but this is typically a loan and must be repaid with interest.