What is Renters' Flood Insurance?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 08 October 2018
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Renters’ flood insurance is a type of coverage that provides tenants with protection in the event that furnishings and other properties are damaged during the course of a flood. This special type of insurance is often necessary, since providers of standard tenant or renter’s insurance usually do not cover any form of flood damage. In some nations, this type of coverage is only provided by a government entity, while other nations allow private insurance providers to offer this type of coverage directly to tenants.

The benefit of renters’ flood insurance is that tenants can rest assured that their personal belongings are protected in the event that flooding due to situations like dam breaks, snow runoffs, or rising levels in local rivers, lakes, or creeks should take place. While standard tenant insurance does protect from a number of issues, including fires or theft, most will not provide much in the way of protection in the event of some sort of natural disaster like a flood. For this reason, flood insurance for renters is normally purchased above and beyond the standard renters' coverage.


One of the main factors to consider with renters’ flood insurance is the cost. For tenants living in rented or leased spaces located in low-risk areas, the premiums are likely to be somewhat lower than for people living in flood plains. This is due to the increased risk for a flood to actually take place at some time during the life of the coverage. It is possible to determine if an individual is living in a flood plain by consulting a flood insurance map for the area. Government entities typically issue and update these maps, making it possible for insurance carriers to determine the average level of risk associated with providing this sort of insurance protection to residents within a given area.

While renters’ flood insurance can be expensive, all it takes is one incident of flooding to make the cost worthwhile. It is important to look closely at the terms and conditions found in the policy, including the maximum amount of benefits allowed per incident. When the renters’ flood insurance is provided through a government agency, rates are usually not open to negotiation, and the cap on coverage may be a little lower. In addition, many will require that renters keep a log of all belongings that are covered under the terms of the policy, including estimates of replacement costs for each item listed.



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