Why Is Renters Insurance In A Flood Zone Complicated?
Flood zones are complicated to begin with. There are exceptions, and they don’t always lie where you expect them to. Generally speaking, you won’t find apartments being built in the level of flood zone that would make it difficult to get renters insurance.
Even without discussing renters insurance flood coverage, it’s worth noting that 95% of the population of America won’t even be asked if they’re in a flood zone when they go to buy renters insurance. There are specific areas and specific risks that would trigger that question, and chances are that if you need Des Moines Renters Insurance you’re not in one of them.
Keep in mind that renters insurance in a flood zone doesn’t just indicate the risk of flood. It also can indicate the presence of additional risks for covered perils such as windstorm, or even weight of ice and snow in some cases. It’s not that underwriters don’t want to write renters insurance in a flood zone, per se. They actually don’t care much about the flood risk for reasons we’ll touch on in a moment. But the additional hazards to be found when issuing renters insurance in a flood zone can be significant.
Renters insurance in a flood zone doesn’t have to be expensive, either.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
Does Renters Insurance In A Flood Zone Cover Floods?
Nope. There is no coverage for a flood under any circumstances on a renters insurance policy anywhere in the country. Flood is excluded, and flood insurance is an entirely different kind of insurance. You won’t get coverage for damage from the flood.
On the other hand, incidental damages from the flood are often covered. You might find, for example, that you can use a spoiled food provision to replace what’s in your fridge if the flood caused a power outage. In that case, renters insurance in a flood zone isn’t covering the flood, it’s covering the result of a power outage regardless of the cause because there are specific provisions written into the policy for that purpose.
Renters insurance in a flood zone doesn’t cover floods because it was long ago decided that flood insurance should be a separate type of coverage. Floods go well beyond “catastrophic” and the losses are so large that insurance companies aren’t an appropriate place for that exposure. Flood insurance is a separate policy often underwritten by the federal government, and there are some special rules and regulations that surround it.
The question is, do you need flood insurance if you have renters insurance in a flood zone? If you’re on the second floor and the worst case scenario is an inch of water in the lower floor, maybe not. If you’re on the first floor, you might want to consider it.
How Does Insurance Define A Flood?
Insurance defines a flood as water moving along the ground, generally. While that’s broad, it’s also limiting. Water damage in general is not excluded. If you have a burst pipe, that water damage can have coverage because accidental discharge or overflow of water or steam is a covered peril on your renters insurance. A burst pipe isn’t a flood, it’s a specific thing that happens. Not all water damage is a flood.
If your neighbor upstairs has Des Moines Renters Insurance and overflows their bathtub causing damage to your unit downstairs, that’s not a flood, either. That’s something that would generally be covered by your neighbor’s liability insurance. That’s why it’s there, and that’s why it’s common to require that everyone in the building have renters insurance. When living in close quarters, these sorts of things can happen.
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How Can I Get Renters Insurance In A Flood Zone?
Renters insurance in a flood zone generally isn’t difficult to find. Effective Coverage makes it easy in most cases to get coverage online, or you can call and ask questions. Keep in mind that renters insurance doesn’t cover floods, flood insurance does. There’s a very specific definition of flood, though, and many water related losses are covered by your renters insurance.
To get protected, just call Effective Coverage. Staffed by insurance experts for renters, you can get your questions answered and get the coverage you deserve in just minutes. It’s even faster online, taking only about sixty seconds.
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
Photo Credit: Michael Dolan Hurricane Irene Aftermath CC BY 2.0