Insurance and risk management is a complex area, and one that many people have never had a need to familiarize themselves with. You can even get a degree in insurance and risk management, so it’s not something that most people can just dive right into. That’s fine, that’s what insurance agents and insurance companies are for, to help you through the flood of unfamiliar terms.
That’s actually a perfect example of what we’re about to discuss. The “flood” of unfamiliar terms. Guess what, that wouldn’t qualify as a flood under the insurance industry definition. So does renters insurance cover floods? For that matter, what is a flood in a renters insurance policy?
Does renters insurance cover damage from a flood? For that matter, what is a flood? Follow along with the renters insurance experts for the answer.
Does Renters Insurance Cover Flood?
Is a flood covered by renters insurance? Well, that depends on what your definition of a flood is. This is why terminology and working with a renters insurance expert is so crucial to your renters insurance. So, let’s take a look at the definition of “flood” under a standard Texas renters insurance policy:
[Excluded] water damage means flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge…
Direct loss by fire, explosion, or theft resulting from [excluded] water damage is covered.
So, does renters insurance cover flood? “Excluded water damage means flood…” shows that it does not. To restate, water running along the ground or which has overflowed from its natural or artificial containment is excluded. Whether that water comes in the form of the sudden collapse of a water tower or the breaching of a levee, floods are not covered.
Is Flood Covered By Renters Insurance? Caveats…
Above, the policy language goes on to state that “Direct loss by fire, explosion, or theft resulting from water damage is covered.” In other words, damage to your property from the water is not covered. However, if the water finds its way into your garage where you’re storing your prized collection of sodium, and the sodium reacts with the water to produce heat and flammable gasses which were then ignited, the fire was a direct result of the flood, and coverage could be available.
Does renters insurance cover flood? No. Does renters insurance cover fire caused by a flood? Generally speaking, yes. Does renters insurance cover theft after a hundred year flood that forces evacuation? That might actually be a separate question to be addressed with regards to the vacancy provision.
To learn more about the nuances of determining if flood is covered by renters insurance, contact Effective Coverage today at (800)892-4308 or click above for renters insurance quotes online!