Renters Insurance and Flood Coverage
Many perils can strike someone who is renting a residence or location for their business.
Among the problems they can run into is not having renters insurance should a flood hit their property.
If you are a tenant, it is advised that you look for multiple quotes for renters insurance and get the coverage, which can be as little as $200 a year in many cases.
When you look for renters insurance online, you will discover that the policy premium is centered on a number of factors, including the flood risk of the property that you are occupying.
The majority of renters residing in moderate-to-low risks areas are eligible to receive coverage at a preferred rate through the National Flood Insurance Program (NFIP). The program offers building and contents coverage all at one low price. Residential premiums can be obtained for as low as $39 a year if you are interested in contents only coverage.
Should you not qualify for a Preferred Risk Policy, a standard rated policy is still an option. While flood insurance is not federally required, close to 25 percent of all NFIP flood claims take place in moderate-to-low risk areas.
If your residence is in a high-risk area, a standard rated policy is the only available option. That policy makes available separate building and contents coverage.
As you look into obtaining renters insurance online, take note that flood insurance premiums are calculated based on factors like: Year of building construction; building occupancy; number of floors; the locale of its contents; its flood risk (for example, the flood zone); the locale of the lowest floor and how it relates to the elevation requirement on the flood map (for newer buildings only); the deductible you select and the amount of coverage.
Once you have selected renters’ insurance online, take note that filing a claim is not that difficult.
When filing a claim, follow these three easy steps:
(Step One) – When you experience a flood, contact your agent to file a claim. An adjuster should contact you within a few days of filing.
When filing, be sure to have the following information available:
- Name of your insurer;
- Your policy number;
- A telephone and/or email address to reach you at all times.
(Step Two) – Be sure to separate damaged and undamaged property. Your adjuster will require evidence of the damage to the residence along with possessions in order to put together a repair estimate. Also make sure to:
- Record pictures of all of the damaged property, including discarded objects, structural damage, along with standing floodwater levels;
- Compile a list of damaged or lost items and be sure to include their date they were purchased, value and receipts, if possible;
- Officials may need disposal of damaged, so, if possible, relocate flooded items outside of the home.
(Step Three) – Your adjuster will set you up with a Proof of Loss form – your official claim for damages. You will be required to file this claim with your insurer within 60 days of the flood. This piece of paper substantiates the claim and is needed prior to the NFIP or insurer making payment.
You will obtain your claim payment after you and the insurer agree on the amount of damages and the insurer has your entire, accurate, and signed Proof of Loss form.
If major catastrophic flooding takes place, it may take require more time to process claims and make payments due to the sheer number of claims submitted.