Flood Insurance for Renters

Contributor, Benzinga

Did you know most of our readers prefer to work with Lemonade for their renters insurance needs?

Floods are the most common natural disaster in the United States. You might put your personal property at risk if you live in a flood zone and don’t have a flood insurance policy. Let’s take a look at what flood insurance is, how it applies to you and where you can find the best flood insurance for renters. 

Best Flood Insurance for Renters

Now that you understand how flood and renters insurance works, it’s time to take a look at some of the best flood insurance policies for renters. 

1. Lemonade

Did you know most of our readers prefer to work with Lemonade for their renters insurance needs?

Get Protection Now

Lemonade offers fast, easy coverage through their seamless application and claims process. Get personal property and liability protection with Lemonade Renters Insurance.

get a quote securely through Lemonade’s website
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Best For Seamless, 100% digital sign-up
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Lemonade Insurance Company is a newer player when it comes to renters insurance. It’s become a popular choice because it uses technology to simplify buying insurance and getting claims paid. 

You can get the full Lemonade experience using its mobile app or website. To buy a policy, Lemonade walks you through a short, easy application. During the application, you can determine your deductible and adjust for areas that need more coverage. For example, if you have expensive electronics, you may want to increase your coverage above the default to ensure you can get them replaced if a worst-case scenario occurs. 

Another feature that sets Lemonade apart is its Giveback program. When you get a Lemonade policy, you choose a nonprofit to support. There are many charities to choose from, including the American Red Cross, UNICEF, Teach For America, the ACLU and The Trevor Project. Out of the premiums you pay each month, Lemonade pays its expenses and pays claims. Any premiums left go toward your charity of choice. Lemonade donated over $2 million in 2021 through its Giveback program. 

Lemonade is best for those who are comfortable communicating and filing claims through the app or website. If you have questions for Lemonade, you can get in touch through the app or by clicking the “Help” button on the bottom of the website, by emailing them directly at help@lemonade.com, or giving them a call. 

Lemonade also isn’t available in all states. Its renters insurance is available in Arizona, Arkansas, California, Colorado, Connecticut, District Of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, and Wisconsin.

Learn more about Lemonade renters insurance in this review. 

Best For
  • Renters who want a simple application process
  • Renters comfortable with using apps
  • Renters who want to support charities through the businesses they work with
Pros
  • Easy application that you can complete using the app
  • Fast, hassle-free claims process
  • Supports charities
Cons
  • Not available in all states

2. Allstate

Unlike most types of insurance coverage, the cost of flood insurance usually doesn’t vary from company to company. This is because flood insurance policies are priced and sold through FEMA’s National Flood Insurance Program (NFIP) and issued through authorized 3rd-party insurance companies. The NFIP assigns a price based on your home flooding risk.

The best way to lower the cost of your flood insurance is by securing the most affordable renters insurance possible. Allstate offers affordable renters insurance throughout the country and you can bundle your coverage with an existing Allstate policy. You can also lower your monthly expenses even further by taking advantage of Allstate’s wide range of discounts. 

get started securely through Allstate’s website
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Allstate is a well-known insurance company with a national presence. It offers several insurance products, including renters insurance. If you have multiple policies with Allstate, you may be eligible for a discount on your insurance products. Allstate offers comprehensive renters insurance coverage, including water and sewer damage. It also offers generous protection for expensive items such as jewelry. If you live in a high-risk area, however, you may notice that your renters insurance premium is much higher than some of Allstate’s competitors.

Best For
  • Renters who own high-value items
  • Renters who live in areas that are considered moderate or low-risk
Pros
  • Water and sewer damage included
  • No overall limits on reimbursement amounts
Cons
  • Premiums can vary widely depending on where you live
  • Below-average coverage for electronics

3. Progressive

You might already have an auto insurance policy from Progressive — it’s one of the largest car insurance providers in the country. If you do, you can save money when you bundle your renters insurance, flood insurance and auto insurance together. You can save more than 5% on your policy when you bundle.

Progressive can also bundle your renters policy together with other types of coverage — from business insurance to ATV coverage, Progressive’s team does it all. It also offers a wide range of discounts you can use to make your policy even more affordable, including home security system discounts and discounts for paying for your policy in advance.

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Discounts
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1 Minute Review

Progressive is a long-standing insurance company, founded in 1937. It has an AM Best rating of A+ and an S&P rating of AA. Progressive’s renters insurance provides affordable coverage that can help you recover financially from an unexpected loss.

Best For
  • Opportunity for discounts
  • Easy claims process
Pros
  • Offers a mobile app
  • Can bundle your policy with other Progressive insurance products
  • Offers the option for low deductibles
Cons
  • Need to enter personal information such as your birthdate and social security number to receive a quote
  • Can only make monthly payments if you enroll in automatic withdrawals

4. United Surety

Flash flooding is a major hazard for residents of Puerto Rico and the Virgin Islands. Unfortunately, many renters insurance and flood insurance providers exclude these territories from their coverage maps.

United Surety is one of the few flood insurance and landlord insurance companies that offer comprehensive flood policies in Puerto Rico. United Surety offers private flood insurance options, which means that you can get up to $1 million in coverage — about 4 times what’s available through NFIP policies. Policies are available for rented homes, condos and apartments. United Surety also offers enrollment and quote information in Spanish, which can be an invaluable asset for native speakers. 

Get started securely through United Surety’s website

What is Flood Insurance?

Flood insurance is a type of insurance coverage backed by the Federal Emergency Management Agency (FEMA). Flood insurance is sold through FEMA-approved independent insurance companies and prices are set by federal underwriters.

Flood insurance policies include 2 types of coverage:

  • Building property coverage: Building property coverage helps protect the physical structure of your home. It pays for your repair bills if your home is damaged by flooding. The maximum coverage limit for building coverage is $250,000.
  • Personal contents coverage: Personal contents coverage compensates you for items you own that are damaged after a flood. This coverage helps you replace things like clothing, electronics, small appliances not attached to your home and more. The maximum limit for this type of coverage is $100,000.

Flood insurance typically doesn’t cover any of the following:

  • Living expenses, even if your home was completely destroyed by flooding
  • Damage in underground or hidden rooms, including basements and crawl spaces
  • Cars and self-propelled vehicles (including ATVs and scooters)
  • Outdoor structures and furniture, including decks, patios, outdoor septic tanks, landscaping and wells
  • Damage from mold and mildew that could have been avoided by the homeowner
  • Any losses to currency, precious metals and stock certificates you have in your home

As a renter, you’ll typically only want to purchase personal contents coverage. Your landlord may be required to purchase building property coverage, depending on where your home is located. 

Renters Insurance: An Overview

Renters insurance is a type of protection that compensates you for your belongings that are damaged after a natural disaster or break-in. Most renters insurance policies include 3 parts:

  • Personal property compensates you for things like electronics and clothing after a covered peril.
  • Loss-of-use compensates you for hotel and food expenses if your home is destroyed to the point where it’s deemed unlivable.
  • Personal liability compensates you if you’re sued after someone is injured or has their property damaged inside your home.

Every renters insurance policy includes a list of covered and uncovered perils. If your things are damaged by a covered peril, you can file a claim; if you suffer damage from an uncovered peril, you can’t. Most renters insurance plans exclude flood damage from coverage. If you want protection from flooding, you’ll need to purchase an independent flood insurance policy. 

Renters insurance isn’t legally required like other types of insurance. However, your landlord might require that you have insurance as a condition of your lease.  

Flood Insurance Premiums for Rental Properties

Flood insurance is different than homeowners insurance and auto insurance because prices are set by the federal government. This can be great news if you don’t like shopping around for a policy, but it doesn’t mean that everyone will pay the same amount of money for flood insurance. Let’s take a look at some of the factors that FEMA considers when it creates a quote for your renters flood insurance.

  • Year of building construction: If you live in an older building, you might pay more for flood protection.
  • Building occupancy: The more people you have living in your home, the more possessions you likely own and the more you’ll pay for flood insurance.
  • Number of floors your building has: If your building has more floors, you’re less likely to see damage to your possessions after a flood. This is especially true if you live on a higher floor in an apartment building.
  • Your home’s flood risk: FEMA has mapped out each county’s flood risk and designed each address with a flood risk rating of “high,” “moderate” or “low.” If you live in a high-risk flooding area, you’re more likely to experience a flood and you’ll pay more for coverage. You can check your flood risk rating using FEMA’s flood map service rating.
  • The location of the lowest floor in relation to the elevation requirement on the flood map: The higher your building’s elevation, the less likely you are to experience flood damage. This lowers the price you’ll pay for insurance.
  • The deductible you choose and the amount of coverage: Your policy’s deductible is the amount of money you’ll need to spend before your insurance kicks in and starts paying for damage to your possessions. The higher your deductible, the less you’ll pay each month for flood insurance.

Choose contents-only coverage from your FEMA-approved provider when you rent. Because contents-only coverage doesn’t include coverage for the structure of your building, it’s significantly more affordable than a full flood insurance policy. 

Protect Your Belongings

Are you ready to get started protecting your home and belongings from water damage? Getting a quote for flood insurance is quick and easy with Benzinga. Just enter a bit of information on where you live and you’ll instantly see options available to you. It takes less than 30 seconds to get started on the path to a well-protected future. 

Frequently Asked Questions

Q

How does flood insurance work for renters?

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How does flood insurance work for renters?
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First, your flood insurance company has to participate in the National Flood Insurance Program, or NFIP. From there, it works like any renters or flood insurance, offering coverage up to a certain amount for damage to your personal property at a rental dwelling incurred during a flood.

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Q

What triggers flood insurance coverage?

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What triggers flood insurance coverage?
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This type of coverage protects you from losses caused by a flood.

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Get Protection Now

Lemonade offers fast, easy coverage through their seamless application and claims process. Get personal property and liability protection with Lemonade Renters Insurance.