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Renters Who Live in Flood Prone Areas Should Protect Their Belongings with Flood Insurance
By admin | March 30, 2010
Floods are devastating natural disasters and a prime example of the awesome power of nature. There is no stopping a river overflowing its banks or the water rushing from a broken dam. Unless there is some advance warning, all that is left for people living in the area to do is evacuate as soon as possible. There is usually very little or no time at all to save personal and household belongings. Regular insurance policies that cover property damage do not include flood insurance. This type of insurance has to be obtained from the United States government. But what if you do not own the property where you reside? Is there such a thing as renters flood insurance?
The answer is yes, flood insurance for renters is available but is a separate policy from regular renter’s insurance. Renter’s insurance covers the replacement cost of belongings lost due to fire or theft occurring at the rental property. So how does a renter determine if it is necessary for him to carry renters flood insurance?
The first step is to make an itemized list of all personal belongings and their approximate value. After that the renter has to decide if he lives in a flood prone area. The next step is to contact FEMA for more information. The renter needs to know if he lives in a 100 year flood plain, 100 year sheet flow flooding area, or a 100 year stream flooding area. Third, he needs to go to his city building and ask to see a map showing the 100 year flood plain and talk to a FEMA representative about the flood risk level for his area. After this is done, the last step is to estimate the value of any items that are permanently kept in the basement. This figure has to be deducted from the total cost of all his belongings because these items will not be covered by the renters flood insurance.
Now that the renter knows he needs flood insurance coverage, the next step is to get the insurance policy. He has to determine the amount of coverage necessary to replace his household and personal belongings. The National Flood Insurance Program recommends a minimum amount of $100,000. Next obtain a quote from a reputable insurance company, but keep in mind that the government sets the flood insurance rates and they are not negotiable. All that is left to do is set up the terms of payment.
The final step the renter needs to take is make up a flood safe file to protect his records. His itemized list of belongings, photos or videos of these items, and any sales receipts need to go into a waterproof container or electronic file. To keep this file current the information should be updated yearly.
Some people may feel renters flood insurance is an unnecessary expense, but the cost of replacing an entire family’s belongings would be hundreds of times more expensive than the monthly insurance payment. For peace of mind and financial security, covering your belongings with renters flood insurance is a wise decision.
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