When you are young, you’ll likely have relatively few possessions. Nevertheless, you’ll want to protect what you do have. They’ll help you contribute to building a family later, after all. What if something like a flood were to come along and destroy these items? Replacing them will become essential. You’ll likely hope that your property’s insurance can help you. Still, take pause. Insurance for flooding is a complicated topic. You must choose your coverage options accordingly. How does your residency status determine the type of flood insurance you need?
You might own your home, or you might rent it. Regardless, consider whether you need flood coverage alongside your existing possessions insurance.
The Intricacies of Flood Insurance
Most home or rental insurance policies will include possessions insurance. Should your property or belongings get damaged in a covered incident, you’ll receive help. However, there’s a catch. Most home policies won’t cover damage for weather-related floods. So, if rain brings on flash flooding, or if river swells spill into your home, you might not have coverage.
Nevertheless, separate flood insurance policies do exist. The National Flood Insurance Program (NFIP) establishes these policies to cover such damage.
- Homeowners can often buy flood policies to cover damage to a house itself, along with belongings. Indeed, some mortgage holders must, by law, carry these policies if they live in a high-risk flood zone.
- Renters usually don’t own the structures in which they live. Yet, they do own the possessions inside. Therefore, if you live in an area that participates in the NFIP, you can buy flood coverage. However, you’ll often be able to carry coverage only for the items belonging to you. Since the structure is not yours, it will likely need its own coverage under a policy held by your landlord.
Still, don’t think your home or renters insurance are worthless when it comes to water damage. Many do cover accidental water damage not related to weather. For example, if a pipe bursts in the home, your home or renters policy will provide coverage for this damage. If valuables sustain damage, you can turn to your original coverage to make a claim.
Review both your property insurance and your flood coverage to determine how to make a claim. Depending on the cause of the flood, you might only be able to use one of the policies when filing for assistance. Always remember, limits exist on how much your policy will pay. Your insurance agent can help you determine the appropriate way to make a claim.
Also Read: Should Renters Have Flood Insurance of Their Own?