Is Flood Damage Covered by Rental Property Insurance? January 18, 2023
Landlords need to understand the kinds of losses that their rental property insurance policy covers. Flood damage is a potential problem for landlords as it can be costly to address and may lead to a reduction in rental income.
This blog post will address how landlords can safeguard their homes from flood damage as well as whether or not flood damage is normally covered by rental property insurance. Let’s get started!
How Flood Damage Can Devastate Your Rental Property
Floods can occur anywhere, therefore even if your neighborhood isn’t perceived to be at an increased risk for flooding, you should still contemplate purchasing flood insurance.
Numerous factors, including torrential downpours, melting snow, overflowing rivers, and coastal storms, can cause floods. Flooding can interrupt the lives of tenants and result in water damage to your rental property’s structure and contents. Additionally, it can promote the development of mold and mildew, which could also lead to health issues.
Is Flood Damage Covered by Rental Property Insurance? Understanding Your Coverage Options
Typically, flood damage isn’t covered by traditional rental property insurance policies. The reason for this is flood damage is viewed as a different kind of risk that requires its own separate policy.
It’s crucial to know the distinction between “water damage” and “flood damage” if you’re a landlord. Water damage is damage brought on by water that seeps into a building from the inside, as in the case of a burst pipe or a leaking roof. Standard rental property insurance policies frequently include coverage for this kind of damage. Contrarily, flood damage refers to damages brought on by water that enters the structure from the outside, such as from a river that has overflowed or a torrential downpour. Damage of this nature is not often covered by a typical rental property insurance policy.
Therefore, you must buy a separate flood insurance policy to safeguard your rental property against flood damage. The National Flood Insurance Program (NFIP), is a government program that offers insurance coverage for flood damage across the United States. So, you can purchase a policy through the NFIP or an insurance provider that offers flood insurance coverage.
As stated above, even if your region isn’t thought to be particularly vulnerable to flooding, you should still consider acquiring flood insurance. This is because about 20% of flood damage claims come from homes in low to moderate-risk areas.
It’s crucial to keep in mind that coverage for flood damage is frequently excluded from rental property insurance. You must buy a separate flood insurance policy to guarantee the security of your investment. Remember that many flood maps haven’t been updated in recent years, so it’s crucial to evaluate flood threats on an individual basis.
Our team of professionals is available to assist you if you require property insurance. We’re able to point you in the proper direction and provide helpful money-saving advice. To discover more, contact us right away!