As the impact of climate change is more and more evident with every year, one of the most worrying effects is the rising sea level. According to the most recent report from the National Oceanic and Atmospheric Administration’s National Ocean Service, the next three decades are expected to impact the U.S. coastlines as much as the previous 100 years. Although the negative consequences might be softened with tighter environmental legislation, sea level rise is expected to exponentially increase flood frequency in coastal areas.
Residents living miles away from the coastlines or those who can see all the skyline from their upper-floor apartments might not need to be as concerned as those at beach level. However, knowing what renters insurance does and doesn’t cover in case of a flood is still important.
The main takeaway is the fact that traditional renters insurance doesn’t cover damages to personal belongings caused by water coming from outside of the house. This refers to situations when flooding happens in one’s neighborhood or when sewage overflows and enters one’s apartment. A traditional insurance will only cover the cost of damages caused by water damage unrelated to the weather, such as plumbing leaks, for example.
So, what can renters do to protect their belongings in case of extreme weather events? If the property is located in a flood-prone area, it is advised to purchase a flood insurance policy. The Federal Emergency Management Agency encourages renters to buy this type of insurance to better prepare for worst case scenarios.
A renters flood insurance policy could provide up to $100,000 in coverage for belongings damaged by flood. This type of insurance covers a diverse range of objects tenants brought to the rented unit, which can include clothes, electronics, portable kitchen appliances, curtains and other valuable items such as artwork or furs. It is recommended that renters purchase the same amount of flood insurance as they have for personal property on their renters insurance policy. Renters can estimate the value of personal property by cataloguing all their belongings at home.
