Renters need flood insurance. You might think flood insurance is only for home owners. However, renters are just as vulnerable to flood damage. Here are the reasons renters need flood insurance too.
How much would it cost you to replace everything you own right now? Try to estimate the dollar amount in your head or on a piece of paper. Now compare that number to the amount of money you have in your checking and savings accounts. Do you have enough money to replace everything you own right now?
Most people don't, that's why they need renters insurance in the first place. Renters insurance protects you in the case of a fire or other major problem. However most renter's insurance policies don't cover flood damage. That's why you need flood insurance added to your renters insurance policy.
But do I really need Flood Insurance?
The most common disasters are floods and fires. While renters insurance will protect you against fire, additional coverage is needed for floods and earthquakes.
Flood Insurance is underwritten (subsidized and managed) by the government through the NFIP which is part of FEMA.
What's My Risk?
You can estimate your flood risk at http://www.floodsmart.gov/floodsmart/. Use the "One-Step Flood Profile" tool (pictured right) to determine your flood risk and the cost of a flood insurance policy.
FEMA and the NFIP use flood zones to estimate risk. Flood zones are based on flood maps. Governments try to estimate the risk of flood damage based on how close property is to water and many other factors.
But I Live on the Second Floor (or higher)
While flood waters might not reach the second floor or above, flood damage can still occur. Floods are unpredictable and messy. What happens if your toilets back up? What happens after the flood when there's no power for the A/C and mold and mildew grow?
If you've every seen a house with water damage you'll understand just how messy it can be. Mold can grow on furniture and clothing even if they don't get wet in the initial flood.
What if the building is damaged and not habitable? You may have to find temporary housing. Your insurance policy may cover the costs of temporary housing while you look for a new place.
What if I Live In a Dorm?
If you attend college and live in a dormitory, your parents insurance may cover you. However, you'll want to check with your insurance company.
Years ago, most college kids have very little property to protect. Now students have expensive bicycles, laptops, TV's, DVD players, iPhones, iPods not to mention text books. If this property is stolen or damage, it can cause a serious financial burden.
When Don't I Need Flood Insurance?
If you don't have anything worth replacing then you probably don't need flood insurance. If you live in a dorm on campus you may be covered by your parents insurance (see above).
It's Worth Checking
It won't hurt to call your insurance agent and find out how much flood insurance will cost. It might be cheaper than you think. If you live in a high risk flood area, you should definitely have flood insurance.
Remember Hurricane Katrina? Catastrophic events can happen anywhere and anytime. Even though these events are rare, they are financially devastating.
If you can't afford to lose all your possessions than a flood insurance is probably a good additional to your renters insurance policy.
Tags Apartment Flood Damage flood insurance National Flood Insurance Program NFIP Renters InsuranceRelated Posts
- What Is Flood Insurance?
- Do I Need Flood Insurance?
- Why You Need Renter's Insurance
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