Always a common questions… But you should ask your insurance company in detail what they do offer. This article featured below shares the questions clients have regarding what could happen during a flood. Read below…

You might assume by renting, you avoid home insurance costs. While you’re not liable for property damages as a tenant, unless by negligence or purposeful harm, your possessions aren’t covered by your landlords homeowners insurance. In fact, you’re responsible for replacing your stuff in case of a hail storm, fire or other disaster when you don’t equip yourself with renters insurance. Many landlords actually require renters insurance to avoid discrepancies after damages occur that might leave them liable – like a plumbing leak or other structural issue.

However, standard renters insurance policies do not cover floods or flood-related damages.

How Much Does Standard Renters Insurance Cost?

Renters insurance is fairly inexpensive, even for high coverage. The average cost is about $12 per month per $30,000 in property damages and $100,00 in liability coverage. If you’re renting with more expensive items, like oriental rugs or fine furnishings, you might want to up your level of coverage so you aren’t required to replace your more expensive items in case of disaster. Additionally, there are two different options for determining your coverage amount – actual cost value (ACV) and replacement cost value (RCV). ACV takes depreciation into account and pays you the amount your possessions were worth at the time of destruction or damage. On the other hand, RCV pay you the amount it would cost to replace your items with comparable products. While RCV premiums are more costly, you can simply replace your lost or broken items with the pay out.

How to Determine Amount of Extra Coverage for Floods

Typically, renters who want flood coverage must purchase a separate insurance policy, so it’s important to factor additional coverage into your budget when determining your standard policy size. Homeowners insurance typically doesn’t cover floods as well, so this is a standard housing policy no matter if you’re leasing or buying.

Although homeowners in special flood hazard areas (SFHA) with mortgages must purchase flood coverage, renters are not typically required. However, those in high-risk areas are wise to protect themselves, just as their landlords do. A standard-rate policy offers building and contents coverage, with premiums based on climate and location, deductible chosen, building age, occupancy and number of floors.

What Does Standard Renters Insurance Cover?

Although standard policies don’t cover flood damages, renters insurance can help you in case of the following occurrences:

• Smoke damage
• Aircraft damage
• Vehicle damage
• Riots
• Explosion
• Windstorm/hail
• Fire/lightning
• Theft
• Vandalism
• Volcanoes
• Snow or ice damage
• Appliance damages
• Plumbing, heating or air conditioning freeze
• Short-circuit damages
• Falling objects

Most renters insurance policies also provide a degree of liability coverage, which protects you in case someone is injured on your leased property. Sometimes, too, renters insurance covers you in case you need temporary housing while your apartment is being repaired.

With hurricane season in full-effect, renters along the east coast are wise to protect their belongings with flood insurance. Don’t assume your landlord or your standard renters insurance policy can replace your belongings this Fall.