Flood insurance for renters : How much does it cost?

Does renters insurance cover floods?

Renters insurance doesn't cover flood damage. Any water that enters your home from an overland source is considered a flood. That includes rivers and lakes overflowing, flash floods from heavy rain and storm surges caused by hurricanes.

What types of water damage does renters insurance cover?

Water damage is covered by renters insurance policy, but that is limited to sudden and accidental discharge of water. Here are some situations where renters insurance will cover water damage:

A pipe bursts suddenly
An appliance, like a washing machine, malfuncions
A storm causes roof damage and rain enters from above

What types of water damage does renters insurance not cover?

The standard renters insurance policy does not cover water that comes into your home from outside overland sources. This is referred to as overland flooding and typically requires the purchase of separate coverage.

Overland flooding includes:

Flash flooding from heavy rain
Storm surges from a hurricane
Rivers or lakes overflowing
Mudslides

Do you need flood insurance as a renter?

Because you rent your home, any property damage to the home itself from flooding is covered by your landlord’s flood insurance policy, if they have one, but that doesn't cover your personal property. If your landlord carries flood insurance, it's a good clue that you should consider it as well.

Renters insurance is not required by law, although your landlord might require you to carry it. Flood insurance isn't required either. However, if you live in a high-risk flood zone, you should seriously consider it.

You might not need flood insurance if you live on an upper floor. Weigh the risks against the costs in your area to decide if it's right for you.

How much does flood insurance cost for renters?

Per FEMA, flood insurance for renters can cost as little as $99 a year. However, your rates will vary depending on the flood risk in your area and how much coverage you need, among other factors.

Another major factor determining cost is the kind of provider you choose for your flood insurance.

Where can renters buy flood insurance?

Renters can buy flood insurance through a private provider or the National Flood Insurance Program, a federally-run program. There are some differences between these policies.

The National Flood Insurance Program (NFIP)

The Federal Emergency Management Agency (FEMA) offers its National Flood Insurance Program (NFIP) to provide homeowners and renters with flood insurance coverage.

The NFIP’s rates and policy offerings may vary based on your ZIP code. Although NFIP caps its flood insurance at $100,000 in maximum contents coverage, it is a policy backed by the federal government for added peace of mind.

Private flood insurance companies

In addition to the NFIP, there are also private insurance companies that specialize in flood insurance.

These are some popular companies that offer flood insurance coverage for homeowners and renters:

AIG
ASI
Assurant
Chubb
Liberty Mutual
Neptune
Swiss Re
United Surety

To find the best renters flood insurance for your home, it is always helpful to shop your options for both types of flood insurance so you get the best coverage and the cheapest price for your renters insurance.

Frequently asked questions about flood insurance for renters

Does renters insurance cover flood damage from hurricanes?

Renters insurance covers hurricane damage if the rainwater enters through a damaged roof or a broken window. Overland flooding that happens as the result of a hurricane, however, is not covered unless you have flood insurance.