- Legal EditorHenry Dahut, J.D.
Henry Dahut, J.D.
Attorney - Legal Publisher - Educator
Henry Dahut is a licensed California trial attorney. Over the course of his 30-plus years practicing law, Henry has represented and counseled countless clients in legal trouble.
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Flood Damage Not Included In Most Renter’s Insurance
Renters that are asked to purchase rental insurance as a condition of their tenancy agreement should be aware that there are many types of renters insurance products available to renders.
In most cases, the standard renter’s insurance does not include coverage for flood damage. While some insurance carriers will sell renters insurance policies covering a renter’s personal belongings such as furniture, electronics, and clothing from accidental water damage caused by common water sources such as broken pipes, sump pumps, water heater failures, faulty air conditioners, it does not cover flood damage caused by natural disasters.
While flood damage is not covered by most renter insurance policies, most do cover other certain forms of peril, including fire, tornadoes, hale, and rain that is not caused or resulting from a flood or an earthquake.
FEMA offers flood relief for renters
According to Federal Emergency Management Agency (FEMA), flood insurance may be available to renters for up to $100,000 for personal belongings, so long as their municipal community is registered with the National Flood Insurance Program enacted by the federal government.
FEMA maintains a list of communities that are eligible for flood insurance. The cost of a renter’s flood insurance policy may be based on a number of risk factors, including the age of the building, how many stories and occupants the building has in the property’s flood zone and the amount of your deductible you can pay.
How Renters Insurance Companies Measure Tenant Reimbursement
There are two methods by which insurance companies reimburse renters for damages sustained by covered losses. The first reimbursement value is measured by the actual cash value of the personal property at the time the actual damage occurred. The second reimbursement value is measured by the current replacement cost of the personal property. This is the favored method for renters since the property is newly replaced at the current market price.
Flood damage caused by wind surges is usually excluded from coverage
Even if you have insurance covering “Acts of God,” many insurance companies exclude coverage for flood claims caused by wind surges such as hurricanes. As a result, such claims are regularly denied by insurance companies.
To legally justify their denial of coverage for flood damage caused by wind surges and hurricanes, insurance companies draft specific definitions in their policies of insurance as to what constitutes “wind damage” versus “flood damage.”
Insurance companies outline such depictions to justify excluding expensive flood water claims legally. According to National Ocean Agency, the most recent Hurricane in 2020 was Hurricane Alice, which reached winds over 155 mph and caused massive flooding and destruction of homes and property.
Most Supplemental Flood Insurance Is Cost-Prohibitive
While homeowners can purchase supplemental insurance endorsements that cover a specific type of natural disaster (such as flooding), the homeowner will likely have to pay a very high premium for such coverage. Furthermore, suppose your home is located in a high-risk area, such as in the Gulf state coastlines. In that case, insurance companies will not offer such a range whatsoever (at least not without a federal government guarantee).
