Does Renters Insurance Cover Flooding?

5/9/2019 (Permalink)

Tenants and owners of residential buildings located in flood zones should consider obtaining flood insurance

Factors That May Impact the Availability of Flood Coverage for Renters

Tenants and residential property owners may want to know whether renter's insurance policies cover damage caused by flooding. Flood damage is excluded from most property insurance policies. The owners of structures in flood zones are often required to obtain a separate flood policy through the National Flood Insurance Program or private insurers. Find out more about the factors that may impact the availability of flood coverage for renters.

Check the Covered Perils

Property owners are responsible for restoring structural damage, which should be covered by a flood insurance policy. Tenants should check the terms of renter's policies to make sure that their belongings are protected. Damage caused by flooding is distinct from any of the following types of damage:

• Sewer
  
• Storm
  
• Water
  
  

Whereas damage caused by storms or water is covered by most policies, flood damage or sewer damage usually require additional coverage, either in the form of an endorsement, rider or supplemental policy.

Look for Exclusions

If a policy is unclear on whether damage due to heavy rain or rising water is covered, a policyholder should check for stated exclusions. Many property and renter's insurance policies explicitly exclude damage caused by any type of exterior flooding or a sewer backup.

Investigate Endorsements

Even if a renter's policy excludes flood damage, it may be possible for policyholders to buy this coverage back in the form of an endorsement. If a tenant resides in a structure situated in a flood zone, the additional cost of obtaining flood coverage may offset a catastrophic loss.

Tenants and owners of residential buildings located in flood zones should consider obtaining flood insurance. A tenant should be familiar with the terms of renter's insurance to determine whether damage caused by floods is excluded or can be bought back. Insurance coverage can facilitate the process of recovering from flood damage at a residential building in Austin,TX.